Page 350 - Microsoft Word - FY 2020 Adopted Budget Document

Champion Great Neighborhoods

Goal 1: Foster Healthy and Attractive Neighborhoods
Objective 2: Provide for a Variety of Housing Options
Project Performance Measure(s) City Service Team (Department)
CGN Tax Credit Pilot Projects Maximize use of federal funding Shared Services (Housing)
1.2.2 allocated to assist qualified persons to
reside in safe, decent housing
Summary:

The City Council approved Consolidated Plan, and the Housing Needs Analysis identify a need for affordable rental
housing in Arlington. To address this need, a framework for reviewing and approving housing tax credit proposals, as
well as a Housing Tax Credit policy was developed and approved by City Council. Two housing tax credit projects have
been proposed and were vetted by staff, Community and Neighborhood Development Committee, and ultimately by City
Council. City Council approval of a Resolution of No Objection for both projects. These are both undertaken as pilot
projects, using the 4% tax credit and tax‐exempt bond financing as a tool to develop or redevelop affordable housing,
where other financing options are not viable.

Projects will have numerous stages of approval, the first being a Resolution of No Objection from City Council which both
projects received in the first quarter of 2019. Next, the projects will submit an application to the Arlington Housing
Finance Corporation (AHFC) requesting tax exempt bond financing. Approval of a Memorandum of Understanding from
the AHFC will indicate the organization’s willingness to provide the financing. The developers will then apply to the
Texas Department of Housing and Community Affairs for an allocation of tax credits and to the bond review board for
bond cap. It is anticipated that Patriots Pointe will be able to complete these processes by the end of the third quarter,
and Spanish Park will conclude in the fourth quarter.

Because of site challenges, the Patriots Pointe project has been tabled.

The Spanish Park project proposes a $14 million rehab of an existing 350‐unit apartment complex that was originally built
in the 1960’s. The project is currently an affordable housing development and will remain so. The project proposes new
signage, lighting, windows, stairs, railings, interiors exterior finishes and improvements to the sidewalks and parking lot.

Through the end of the fiscal year, all stages reflected in the graphic below are complete. It is anticipated the transaction
will close in the first quarter of FY 2020, and the rehab will begin first quarter FY2020, with construction complete by the
first quarter for FY 2021. Staff and the developer met with the Heart of Arlington Neighborhood Association who are
supportive of the proposed improvements.

Spanish Park

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