Ian Benavides, director of the Department of Construction Services, told the Community Development and Planning board that staff recommends approval of a request by the Housing Authority of San Antonio for a full property tax exemption to support a new rental project.

Benavides said the project would include 232 units with a mix of market-rate one- and two-bedroom apartments and affordability set aside tiers. "La recomendación del personal es recomienda aprobar la solicitud," he said. He also said the project includes reserves and supportive services intended to assist low-income residents and that the request is subject to the requirement in "la legislación 303 del Código de Gobierno del local de Texas" that public-facilities corporations governed by unelected officials obtain municipal approval.

Why it matters: The boardaction clears the item for the full City Council, where final approval is required for the public-facilities tax exemption. Council approval would allow the developer and the Housing Authority to use the exemption to reduce operating costs for the property and direct some revenues to supportive services, proponents said.

Discussion and concerns

Councilmembers and public commenters focused on how many units would be affordable and at what income levels. Councilmember Villagrán said the project sets only about 10% of the units at 60 percent of area median income (AMI), with another 40 percent at about 80 percent of AMI, and argued that the distribution limited help for the lowest-income households: "Solamente tenemos 10 unidades ... que van a ayudar a la persona que realmente tiene dificultades. ... Solamente voy a votar en contra porque yo no creo que viviendas de oportunidad proporcionen costeabilidad en este proyecto," Villagrán said.

Other members, including Councilmember Castillo, said the project can create and preserve units in corridors that need investment and that additional details on unit sizes and planned use of PFC (public facilities corporation) proceeds would be provided before the Council vote.

Board action

Councilmember Courich moved approval on the item; the motion was seconded and put to a voice vote. The transcript records at least one named opposition: Councilmember Villagrán said he would vote no. The presiding officer announced the motion passed and that the item will move to the City Council for final consideration.

Next steps

Staff and project representatives were asked to provide the board and Council with more detailed PFC transaction information and the proposed unit-size breakdown before the Council hearing. The boardvote does not itself enact the tax exemption; City Council action will be required to finalize the exemption and any related agreements.

Ending

The board closed debate by asking staff to follow up with the Housing Authority and project representatives on transaction details before the item goes to the full Council.