2002-063-RES ACCEPT APPLICATIONS FOR LOW INCOME HOUSING TAX CREDIT (LIHTC) PROGRAM

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RESOLUTION NO. 2002-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, EXPRESSING SUPPORT FOR APPLICATIONS FOR THE LOW INCOME HOUSING TAX CREDIT (LIHTC) PROGRAM THROUGH THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS (TDHCA) FOR TWO (2) PROJECTS LOCATED IN OR ANNEXED TO THE CITY OF PARIS, TEXAS; RECOGNIZING THE ECONOMIC NECESSITY AND BENEFIT FROM EITHER PROJECT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Low Income Housing Tax Credit (LIHTC) Program was created by the Tax Reform Act of 1986, and was first utilized by the real estate development community during calendar year 1987; and, WHEREAS, effective in 2002, Section 42 of the Internal Revenue Code of 1986, as amended, authorizes tax credits in the amount of $1. 75 per capita for each state, equating to an annual award of approximately $36 million in tax credits; and, WHEREAS, the Texas Department of Housing and Community Affairs (TDHCA) is the only entity in the state of Texas with the authority to allocate tax credits under this program, and since 1987, the LIHTC Program has provided for the construction or renovation of over 96,000 units of affordable multifamily housing throughout Texas, and is generally recognized as the single most effective incentive for the development of new and affordable multifamily housing; and, WHEREAS, the tax credit program is the primary means of directing private capital towards the creation of affordable rental housing, and the tax credits provide developers of low income rental housing with a benefit that is used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing; and, WHEREAS, to qualify for tax credits, the proposed development must involve new construction or substantial rehabilitation of existing residential units (at least $6,000/unit in direct hard costs), and the amount of tax credits that may be applied for depends on the amount and type of additional funding sources, the total amount of qualified development costs to be incurred, and the percentage of units set aside in the development for eligible low income tenants; and, WHEREAS, the City Council has been made aware of two applicants under the LIHTC Program for projects located in or annexed to the city of Paris, Texas, one being located at 1400 W. Washington Street, known as Paris Retirement Village, and the other being located at 2600 Stillhouse Road, known as The Residences on Stillhouse Road, which said projects qualify for housing tax credits from the TDHCA afforded under the aforementioned Section 42 of the Internal Revenue Code; and,