2002-063-RES ACCEPT APPLICATIONS FOR LOW INCOME HOUSING TAX CREDIT (LIHTC) PROGRAM
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,
WHEREAS, each applicant desires to develop, construct, own, manage, maintain, and
operate affordable housing developments for elderly residents, each consisting of seventy-six (76)
units to be located in or annexed to the city of Paris; and,
WHEREAS, the City Council finds and determines that both projects would greatly benefit
the health, safety, and welfare of the citizens of the city of Paris by fulfilling a need within the city
for affordable senior citizens rental housing, and it is deemed appropriate that the City Council
express its support for both projects; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the City Council finds and determines that the two local projects under
consideration for an award under the Low Income Housing Tax Credit (LIHTC) Program, 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, would
greatly benefit the health, safety, and welfare of the citizens of the city of Paris by fulfilling a need
for affordable senior citizens rental housing, and it is deemed appropriate that the City Council
express its support for both projects.
Section 3. That this resolution shall be presented to the Texas Department of Housing and
Community Affairs (TDHCA) and to all other appropriate State and Federal officials, whether
appointed or elected, as an expression of support on the part of the City of Paris for said projects.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED BY UNANIMOUS VOTE OF THOSE COUNCIL MEMBERS PRESENT
AND PARTICIPATING on this 8th day of April, 2002.
~~
ichael J. Pfies , a
ATTEST:
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Mattie Cunningham, City Clerk
APPROVED AS TO FORM: