Tax Credit Development Serving Seniors of the City of Kennedale
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General Scope / Amenities may include: Controlled Access Gates Microwave Dishwasher Washer/Dryer Balcony Patio Exterior Storage Ceiling Fans Refrigerator w/icemaker Spacious Closets Library Fitness Center Pool / Shaded Seating Areas Spa Theater Community Dining Areas Wifi Business Center Barbeque and Picnic Areas Walking Trails ADA accessible pool and amenities
Total # of Units / Mix Unit Type # of Units Bed / Bath Sq Ft / Unit Net Rentable Sq Ft Net Rent 30% 2 Units 1 / 1 750 SF 1,502 SF $358 50% 7 Units 1 / 1 750 SF 5,257 SF $640 60% 14 Units 1 / 1 750 SF 10,514 SF $781 Market 7 Units 1 / 1 750 SF 5,257 SF $900 30% 6 Units 2 / 2 950 SF 5,700 SF $422 50% 17 Units 2 / 2 950 SF 16,150 SF $761 General Scope Units 60% 33 Units 2 / 2 950 SF 31,350 SF $930 Market 14 Units 2 / 2 950 SF 13,300 SF $1,100 Totals 100 Units 89,030 SF Value of Tax Credits Annual Credit Request $1,500,000 (10 year value $15,000,000) Total Development Cost $17,200,000 NUMBERS ARE ESTIMATES
APPROXIMATE AREA MEDIAN INCOME $75,200 The majority of units will be: 50% AMI = $26,350 $37,600* 60% AMI = $31,260 $45,120* General Scope AMI *Based on # household NUMBERS ARE APPROXIMATIONS
TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS HOUSING TAX CREDITS A PRIVATE-PUBLIC PARTNERSHIP SOLUTION TO AFFORDABLE HOUSING The Housing Tax Credit Solution is the Most Successful Public-Private Partnership in U.S. History In 1986, during the Reagan administration, Washington lawmakers created the Housing Tax Credit (HTC) solution to incentivize private developers to build more affordable housing. The incentive allows the federal government to transfer housing development and future operations & maintenance costs to the private market. Since affordable rental housing costs the same to build as market-rate rental housing, the tax credits allow owners to offer reduced rents to cost-burdened* families. 2.4 Million Affordable Homes Built since 1986** *Cost-Burdened describes families paying more than 30% of their income on housing costs. CREDITS The IRS issues Tax Credits to states based on population Developers apply for tax credits with TDHCA* through highly competitive process *Texas Department of Housing & Community Affairs TDHCA selects developments that meet high standards that will receive tax credit awards CREDITS Developers convert credits to capital to build development by selling them to investors who can offset their tax liability Developers build privately owned, quality housing for mixed income residents, most of whom are cost-burdened* Equity is used to reduce the cost of debt that is passed along to residents via lower rents for at least 15 years HTC COMMUNITIES ARE PRIVATELY OWNED & MAINTAINED Why It Works... Large Private Sector Financial Investment, Not Government Owned Investors Screen & Scrutinize Developments to Ensure Viability NO Financial Risk for Federal or State Government Minimum 15-Year Oversight by Investors, Federal & State Governments Tax Credit Developments are Virtually Indistinguishable from Market-Rate Developments But Remain Affordable for 15 to 30 Years Everyone Benefits! Residents Pay Affordable Rents Local Government & Economy Earns Property Taxes, Benefits from Economic Development, Attracts Employers to Relocate & Invest, Provides Workforce Housing, Saves Money & Resources by Keeping Residents from Being Homeless Developer Owns Development & Gets Paid by Building Development Investor Reduces Tax Liability **Source: U.S. Department of Housing and Urban Development (HUD) taahp.org
Thank You! Contact: Dan Allgeier Developer 214-277-4839 Dan@AllgeierDevelopment.com