2026-001 - Authorizing City to participate in 5 in 5RESOLUTION NO. 2026 _'OOl
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS RE-
AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN
RESIDENTIAL TAX ABATEMENTS WITHIN THE 5 IN 5 HOUSING INFILL
REDEVELOPMENT PROGRAM AND APPROVING GUIDELINES AND
CRITERIA FOR SAME; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their
intent to participate in abatement agreements and to adopt guidelines and criteria for granting tax
abatements; and
WHEREAS, after a public hearing on January 10, 2022, the City Council passed Resolution
No. 2022-003 stating its intent to establish the 5 in 5 Housing Infill Development Program
(hereinafter "the Program"), including such incentives as low cost land sales and residential tax
abatements, and adopting guidelines and criteria ("Guidelines") for the Program; and
WHEREAS, in Resolution No. 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 (the "Program Area") as being eligible for the Program; and
WHEREAS, on January 27, 2025, the City Council reauthorized existing Reinvestment Zone
2020-1 and renamed it Reinvestment Zone 2025-1; and
WHEREAS, City Council has revised and readopted the Guidelines for the Program several
times, the most recently on May 12, 2025 via Resolution No. 2025-025;
WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax
abatements are effective for two years from the date adopted; and
WHEREAS, the City Council conducted a public hearing at its regular meeting on January 12,
2026 as required by law wherein the public was invited to comment on renewing the the City's
intent to reauthorize the residential tax abatement program within the Program and to readopt the
current Guidelines; and
WHEREAS, having considered testimony provided at said public hearing, the City Council
continues to desire to participate in the Program Area subject to the Guidelines;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all things
approved and are incorporated herein for all purposes.
Section 2. The City hereby elects to be eligible to participate in a residential tax abatement
program in the Program Area subject to the the Guidelines and Criteria for the 5 in 5 Housing Infill
Redevelopment Program for Residential Tax Abatement Program attached hereto and incorporated
herein as Exhibit "A" and readopted hereby.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 12th day of January, 2026.
CITY afipy��%
ATTEST:
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J . n ce Ellis, City Clerk
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APPAVED AS TO FORM:
p pie H. Harris, City Attorney
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Ste ha � y
Mihir i
nkaj, Mayor
Exhibit A
PL -INFO -0007 (rev 05/12/25)
5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM GUIDELINES,
CRITERIA & APPLICATION FORM CITY OF PARIS, TEXAS
Revised o 12 2025
I. GENERAL PURPOSE AND OBJECTIVES
The City of Paris, working with our local government partners, is seeking to provide a series of builder
incentives designed to encourage new home construction for the purpose of neighborhood revitalization
and the provision of work force housing. New home construction within the existing interior of the
community can have a positive effect towards reinvestment in our neighborhoods by providing stability
and enhanced character, as well as a means to expand our community's local labor force. Focusing on the
existing interior of the City allows the builder to utilize existing infrastructure rather than the extension of
costly streets and utilities in undeveloped lands at or beyond the urban fringe. The City further seeks to
ensure that new construction within the Program Area and undertaken in connection with the Program is
consistent with existing housing within the neighborhood in which it is being built so as to provide for a
pleasant aesthetic for both current and new residents in the area.
To achieve this purpose, the City will offer a series of incentives depending on the type of housing to be
constructed (see Section IV herein):
1. The City will provide low cost residential lots in the Program Area in tax foreclosure city receivership
to Applicants for the construction of single-family homes. This incentive is available only for the
construction of single-family homes. If an Applicant obtains properties through other traditional
means within the Program Area, other incentives within this policy may apply.
2. The City will offer three (3) to five (5) year residential tax abatements of City property taxes
attributable to constructed improvements depending on housing type and as reflected in Section IV
herein.
3. The City will offer reduced rates on building plan review and permit fees as reflected in Section IV
herein.
4. The City will offer reduced rates on labor charges on water and sewer tap fees as reflected in Section
IV herein.
The city staff will work with interested builders to identify parcels from a pool of tax sale lots in trustee
status to develop a list of properties that will be suitable for the construction of new dwelling units. This
may consist of single-family, two-family, medium density, or high-density residences. Prior to any
construction occurring from which the builder is seeking incentives, the Applicant will enter into an
Agreement to be approved by the City Council for the new construction of residential dwelling units on
one (1) or more parcels. Each of the dwelling units subject to the Agreement must be constructed under
the terms of the agreement within five (5) years from the date of the Agreement, unless such deadline is
extended by subsequent approval of the City Council or unless the City and Applicant agree to a shorter
period of time, which deviation shall be reflected in the Agreement. All parcels under the Agreement must
Page 1 of 7
PL -INFO -0007 (rev 05/12/25)
be built upon within five (5) years to satisfy the terms of the Agreement. Failure to achieve this goal will
result in certain claw backs as provided in the Agreement. All applications shall be considered on a first
come, first serve basis, and the City will not maintain a wait list. There will be no income guidelines under
this program for occupants of the dwelling units, whether owner or renter occupied. In the event the
applicant constructs a new dwelling unit and sells said unit, the tax abatement shall lapse and be
terminated as to that parcel unless the City Council approves an assignment of the tax abatement
agreement to the new owner.
In order to further encourage local development, employment, and enhancement of our economy, to be
eligible for incentives in this policy, building materials and fixtures used in the construction of new
dwelling units, where possible, must be purchased locally within the City of Paris.
II. DEFINITION OF TERMS
Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq., as
amended from time to time.
Agreement - A contractual agreement between an applicant and the City of Paris for the purposes of a 5
In 5 Housing Infill Development Program to include an economic development agreement pursuant to
Chapter 380 of the Texas Local Government Code and a residential tax abatement agreement pursuant to
the Act. An Active Agreement is an Agreement under which the Applicant has not yet completed all the
improvements required therein.
Applicant - An owner, proposed owner, builder or authorized agent of the owner of eligible property
seeking an agreement under this policy.
Base Year Value -The assessed value of eligible property on January 1, preceding the date of execution.
Eligible Property - Property located in the defined Program Area and immediately Adjacent thereto,
whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed
on due to taxes.
Immediately Adjacent Property — Property which lies immediately next to the boundary of the Program
Area, including property across a street or intersection or located diagonally therefrom.
New Structure - Residential improvements made to a property previously undeveloped or a vacant parcel
which is placed into use by means other than by expansion or modernization without full demolition of
an existing substandard or condemned structure.
Neighborhood Uniformity — Consistency or similarity in the characteristics of homes, properties, and
overall design within a specific neighborhood, primarily concerned with maintaining consistency and
cohesion in architectural styles within a given street, block or larger area.
Program Area - An area depicted in "Exhibit B" of the approved resolution for the 5 In 5 Housing Infill
Development Program, which area is wholly within the boundaries of Reinvestment Zone 2020-1 for the
purpose of residential tax abatements.
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PL -INFO -0007 (rev 05/12/25)
Residential Improvements - The construction of new residential structures and all the appurtenances
thereto. This term includes single family, duplexes and multi -family structures.
Value of Improvements - The appraised value of the Residential Improvements as determined by the
Lamar County Appraisal District and as described in the Agreement.
III. ELIGIBILITY AND GUIDELINES
Real property is determined eligible under this policy as provided in the Definitions. If property is eligible,
an Applicant may apply for an Agreement to receive incentives provided for in this policy. For tax
foreclosed properties, all taxing jurisdictions shall be required to sign off on the low-cost land sale
according to the provisions of State Law prior to transfer of the property to the applicant.
Minimum Investment To be eligible for residential tax abatement, an Applicant must construct a new
structure or structures on the property parcel(s) identified in an Agreement between the applicant and
the City.
Limitations:
1. Maximum of 10 dwelling units per agreement.
2. An Applicant with whom the city has entered into an Active Agreement pursuant to which the City
has conveyed a low-cost residential lot or lots shall not be eligible to apply for an additional
Agreement involving such a conveyance until at least 80% of all structures required under the Active
Agreement have been constructed and the City has issued certificates of completion for same. This
80% completion requirement does not apply to Applicants with Active Agreements that do not
provide for the City to convey land. If an Active Agreement applies to a mix of privately owned
property and the conveyance of trustee parcels, the Applicant must have completed construction on
at least 80% of the conveyed parcels to be eligible for a new agreement.
3. Pre -Approved building plans may be accepted. Examples of acceptable architectural styles may be
found in Appendix A attached hereto. Applicants are advised to consult the photographs when
completing their designs to determine whether a given style is consistent with the homes in the
immediate area of any parcel upon which Applicant wishes to build. [Appendix A to be added at a
later date.] The City may deny approval to any design, even if consistent with an example in Appendix
A, if it is not consistent with structures in the surrounding neighborhood of the particular parcel.
4. No zoning change unless there is a substantial change in neighborhood or compatible with the future
land use map.
5. Neighborhood Uniformity —Applicants will submit proposed designs for each dwelling unit sought to
be built as part of the Agreement. Such designs must bear Neighborhood Uniformity in mind and must
conform in basic architectural style to the existing homes in the area in which the structures are to be
built. A design for one neighborhood may not be appropriate for another neighborhood in which the
Applicant seeks to build, so a tailoring of designs to individual neighborhoods is required. No flat or
or shed -type roof lines will be permitted. Submitted designs are subject to the approval of the City,
and once approved, the Applicant/developer/builder/may not deviate from those designs without
prior written approval of the City.
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Low -Cost Sale of Foreclosed Properties - As part of their agreement, an Applicant may choose to purchase
eligible properties that are in a state of tax foreclosure. These properties are available on a strictly first
come, first serve basis and the City makes no warranty on having available properties for this incentive,
nor will it maintain any type of waiting list for available properties. The City will work with the Lamar
County, Paris Independent School District, and Paris Junior College to seek a low-cost sale of the
foreclosed property, but the City can only guarantee a low cost of its share. As noted herein, the City will
only convey such properties for the construction of single-family homes.
Tax Abatement - An Applicant who has satisfied all the criteria and guidelines for the low-cost property
sale and residential tax abatement as set out herein, will be eligible for a tax abatement on each parcel
on which a dwelling unit or units are constructed and completed in accordance with the foregoing table.
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�I
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PL -INFO -0007 (rev 05/12/25)
The abatement will become effective on January 1st of the year following issuance of a Certificate of
Completion following final construction inspection. As provided in the Act, a tax abatement may only be
granted for the value of the Residential Improvements which exceed the base year value of the property
and which are listed in an Agreement between the City of Paris and the applicant, subject to such
limitations as the City of Paris may require. The base value will be set as of January 1st of the year in which
the Agreement is executed. Upon completion of construction, the Applicant shall provide a copy of all
material and: fixture purchase invoices to prove that those materials and: fixtures were purchased locally
within the City of Paris when possible. The tax abatement is available only for improvements made after
the execution of the Agreement. The Agreement may not be approved by the City Council until at least
thirty (30) days after notice of the consideration and possible action on the Agreement has been posted.
Reduced Fees for Building Plan Review and Permitting -The Applicant will be entitled to reduced rates for
building plan review and permit fees as referenced in the Incentive Table.
Reduced Fees for Water & Sewer Tap Labor - The Applicant will be entitled to reduced rates for water
and sewertap laborfees, where required by the Public Works Department, r, as referenced in the Incentive
Table for all new dwelling units under agreement with the City.
Claw Back Provision - The Applicant who enters into an Agreement with the City of Paris shall construct
new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the
Agreement, or a within a shorter time if agreed to by the parties and reflected in the Agreement, or the
City shall have the right to automatically take back any undeveloped parcel under the terms of the
agreement and transfer of the property by all taxing entities. This shall be recorded with or as a part of
the deed as a right of reversion for all uncompleted construction lots deeded under this agreement against
the property. The Applicant may request approval of an extension for such failure to construct a new
residential dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council
under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to
another individual except by prior approval and re -assignment of the parcel(s) and approval of a new
agreement by the City Council. Failure to meet the requirements of constructing the agreed upon new
dwelling -units within the required period will result in a reversion of all parcels upon which Residential
Improvements have not been constructed and completed to the City and will result in the Applicant being
ineligible to participate in this program in the future.
As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the Agreement
shall provide for recapturing property tax revenue lost as a result of the agreement if the owner of the
property fails to make all the Residential Improvements as provided in the Agreement regardless of how
many dwelling units applicant builds.
Compliance with all other City Requirements - The Applicant shall be fully responsible for compliance
with all zoning, subdivision platting, and building code requirements as may specifically pertain to the
subject parcel(s) under the approved Agreement. The applicant shall be fully responsible for all such costs
which may include, but not be limited to: Zoning Changes, Special Use Permits, Variances, Platting and
Surveying Costs, Plan Preparation, and Building Permit Fees.
Page 5 of 7
V. APPLICATION PROCEDURES
PL -INFO -0007 (rev 05/12/25)
Applications for an Agreement with the City shall be reviewed for completeness. Incomplete Applications
shall not be processed. City Staff shall determine whether the application satisfies guidelines and criteria,
and Staff may request additional information or documents from Applicant. City Staff will make final
recommendations on each application to the City Council. Any Applicant desiring approval of an
Agreement shall comply with the following procedural guidelines. All applications shall be evaluated on
their own merits within the parameters of these Guidelines and Criteria.
1. Preliminary Application Steps
A. Applicant shall work with City Staff to identify eligible City Trustee or other parcels within the
defined geographic area. City Staff will provide a list and corresponding map from which City
Trustee parcels may be reviewed.
B. For applications seeking the conveyance of one or more low-cost Trustee parcels, the
Applicant shall attach a notarized/verified pre -approval letter or other notarized verification
from Applicant's financial institution stating that the Applicant will have financial capital
available to complete all new dwelling unit construction under the Agreement with the City.
Such verification of financial capability shall be on the letterhead of the financial institution
and will be reviewed over the course of the Agreement. Applications subject to this subsection
B submitted while the Applicant already has an Active Agreement in place, regardless of
whether the Active Agreement involves the conveyance of low-cost Trustee properties, shall
include verification that Applicant has the financial ability to complete the construction
required under both the Active Agreement and the proposed new Agreement.
C. A complete legal description shall be provided with a copy of the current deed of the land,
unless the parcel(s) are being transferred by deed without warranty by the City of Paris.
D. Applicant shall complete all forms and information detailed above and submit all forms to the
City of Paris Director of Planning and Community Development.
2. All information in the application package detailed above will be reviewed for completeness and
accuracy. Additional information may be requested as needed. If necessary, applicant will meet with
City staff to discuss details of the application and to prepare presentation of the application to the
City Council.
3. The application shall designate whether the dwelling(s) to be constructed are to be retained for
ownership or sold to another owner upon completion of construction. The applicant shall also provide
an estimate of the value of improvements..
4. If an application for the 5 In 5 Housing Infill Development Agreement is to be recommended for
approval by staff, then an Agreement as defined herein with the City of Paris will be prepared by the
City Attorney for approval by the City Council.
5. If the Applicant's property is not found to be eligible, the application will be rejected.
6. The City Council reserves the right to amend these policies and guidelines as needed.
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