Council authorizes application for state tax credits and conduit bonds for Reuter Walton affordable housing project (contingent on allocation)
Summary
Council adopted resolutions to allow Reuter Walton Development LLC to apply for state low‑income housing tax credits and to pursue conduit revenue bonds if allocated credits; council added wording that the city will have no taxpayer liability and the project is contingent on receiving allocation in January 2026.
The council authorized staff to proceed with resolutions that allow Reuter Walton Development LLC to apply for state low‑income housing tax credits and to pursue conduit revenue bonds to support a proposed affordable housing project, contingent on later allocation decisions.
Councilor Whiting moved adoption of resolutions to permit the developer to apply for tax credits and seek conduit bonding (identified in the transcript as 2025 TECH 129 and 2025 TECH 130). The motion included language clarifying the project is contingent on receiving a state allocation of tax credits in January 2026. Council debated taxpayer liability; staff counsel and an attending attorney indicated the city would not have responsibility for the project’s debt under the conduit structure and agreed to add explicit wording to the resolution stating there would be no liability to city taxpayers.
An attorney and staff explained that the state’s recent change allowing applicants to request as little as 25% in initial equity (down from 50%) expands the pool of applicants but means developers must identify additional financing sources if they secure allocation. Council amended the motion to include explicit no‑liability language and adopted the motion by voice vote. If Reuter Walton receives a tax credit allocation, subsequent hearings and actions (including a public hearing on issuance of revenue bonds) would be scheduled in 2026.
The action does not itself create debt; it authorizes applications and later conduit steps contingent on external allocation and financing.
