Controversial "Low-Income Housing" to Take Center Stage at Tomorrow Morning's Meeting

The low-income housing controversy continues tomorrow morning at the McNease Convention Center, as council, staff and the public convene at 11:30 a.m. to discuss the “Outlook on Valleyview” housing development.

At a heated city council meeting last Tuesday, sharp opinions and pros and cons were made by the parties in attendance, many tripping over a phrase that has become the topic of debate, "low-income housing". 

LDG Development, the developer interested in building on the property located at 2900 Valleyview, has applied for 9 percent Housing Tax Credit through the state, which is funded by the U.S. Treasury Department, and overseen by the IRS. This is a tax credit that would offset a portion of the federal tax liability for the developer in exchange for the production of affordable rental housing.  

This Housing Tax Credit (HTC) is not to be confused with Section 8 housing. In Section 8 housing, rent is determined and dependent upon on 30 percent of a tenant’s actual income. With HTC developments, tenant rent is based on annually published rent guidelines, which could increase or decrease depending on what the annually-based published limits are each year. In this development situation, tenants who earn up to 60 percent of the area median family income for the area and their household size, and who meet the eligibility restrictions of the property, are the people who would qualify for this type of rental property.

 LDG Development wants to build an 80-unit apartment complex for people whose maximum annual income does not exceed $44,000. That amount of income encompasses many kinds of people, from newspaper reporters, policemen, firefighters, Veterans, college students, retirees, single moms and dads, home health caregivers, day care workers, bank tellers, to small business owners and etc. 

While many are not in favor of a tax credit being awarded, as voiced at the last city council meeting, The Texas Department of Housing and Community Affairs Governing Board is actually who decides whether or not LDG will be awarded the HTC at the Valleyview property.  According to the TDHCA website, the boards’ decision is based on criteria such as local support, size and quality of the units, amenities and services provided financial feasibility, and any other items that would contribute to quality affordable housing. The TDHCA Governing Board will make their final decision regarding this issue in July.

Another concern voiced by those in attendance was apprehension about poor maintenance and preservation of the property. There was some discussion about what happens when the developer has completed the project and then “moves on to forget about a community they have no real interest in”.

In some cases the developer is actually required to assist in the maintenance of the property for up to two years as a requirement for the initial tax credit awarded. Regardless, all HTC funded properties are subject to inspection at any point in time when a complaint is logged or an issue arises that needs to be rectified in a timely manner. Unless one of these situations should roll out, an inspection of the property is done every three years, and the TDHCA will continue to monitor the complex for up to 40 years.   

Members of Community Development and representatives of LDG were unavailable for comment at the time information was being gathered for this article. All facts are based upon public information provided from the Texas Department of Housing and Community Affairs, and information presented at the last city council meeting where this issue was discussed.