12 - Reauthorizing the City to participate in Residential Tax Abatements related to the 5 In 5

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memorandum Item No. 12 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Re -adoption of Guidelines and Criteria for Residential Tax Abatements -5 in 5 DATE: January 8, 2024 BACKGROUND: On January 1Oth of last year, Council approved the creation of the 5 in 5 Housing Infill Redevelopment Program ("5 in 5" or the "Program"). One of the incentives in the program is a residential tax abatement. The terms and conditions of a residential tax abatement under this Program differ somewhat from the city's other residential tax abatement program and are unique to 5 in 5. Pursuant to Chapter 312 of the Texas Tax Code, a city must re -affirm its desire to participate in a tax abatement program and readopt the guidelines and criterial for the program. STATUS OF ISSUE: The current policy was approved in January 2022 for a period of two years, so Council needs to re -adopted it in order to be able to continue to participate in a tax abatement program within 5 in 5. A change in the law since 2018 requires that council conduct a public hearing prior to re -adoption. BUDGET: NA RECOMMENDATION: Conduct a public hearing and adopt a resolution re -adopting existing guidelines, attached hereto.