Primary Department: Housing and Community Development
Primary Department Head/Elected Official: Thao Costis, Executive Director
Secondary Department: Management and Budget
Secondary Department Head/Elected Official: Daniel Ramos, Executive Director
Regular or Supplemental RCA: Supplemental RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request by Housing and Community Development for denial of an application for exemption from ad valorem taxation of an appraised value of the property for the Harris County jurisdiction for the Mountain Top Development for The Preserve at Dominion Park tentatively located at 0 Brundage Dr., Houston, TX 77090 pursuant to Texas Tax Code §11.1825. The application received was insufficient to allow the County to make the determinations of affordability and regional necessity required by the Texas Tax Code §11.1825(x).
end
Background and Discussion:
On August 29, 2023, Commissioners Court approved guidelines and an amended policy related to exemptions of ad valorem taxation for certain multifamily rehabilitation or construction project properties. To launch the tax exemption program expeditiously, the first application period was a 60-day period following Commissioners Court approval of the August 2023 policy. In fiscal years after 2023, the County’s application process is intended to comply with applicable HCAD deadlines to allow such exemptions to be reflected in that year’s assessed valuation. For fiscal year 2025, the Application Period was January 1 to March 1.
On August 6, 2024, Commissioners Court approved the amended guidelines, application, and policy related to exemptions of ad valorem taxation for certain low-income multifamily rehabilitation or construction project properties increasing the maximum tax exemption rate from 50% to 100% of the appraised value of the property.
Within the current application period, HCD received an application from the applicant: Mountain Top Development. Since then, staff from HCD, OMB, and CAO have worked together to determine if the organization and property referenced in the application preliminarily qualify as an Eligible Organization and Eligible Property and attempted to provide an analysis of the fiscal impact to the County if a tax exemption were to be granted.
In our review we found that the application contains inconsistencies in the identification and ownership of the subject property. The listed address (“0 Brundage Dr”) appears to be a placeholder for unassigned land, and no valid HCAD account number is provided, leaving no identifiable parcel or assessed value to which the exemption may be applied. Additionally, the application indicates a planned acquisition date of June 30, 2026, indicating the applicant does not currently own the property during the relevant tax year. These issues are further compounded by the submission of financial documentation prepared by a non-independent source and the characterization of the project as being under “active construction” is inconsistent with the materials provided, which describe only preliminary site preparation activities, such as soil testing and feasibility studies.
The applicant may submit a future application for consideration, during the application period of January 1st - March 1st, once the project has progressed and the property has been acquired and assigned a valid HCAD account number. At that time, the application should clearly identify the parcel for which the exemption is being requested and supply information that allows Harris County to report an analysis of the fiscal impact of a potential tax exemption.
Pursuant to Texas Tax Code §11.1825, after Commissioners Court renders a decision on the exemption, HCD will notify the applicant and the Harris Central Appraisal District (HCAD).
Expected Impact:
No fiscal impact.
Alternative Options:
N/A
County Strategic Plan Goal: 6. Help residents achieve housing stability.
County Strategic Plan Objective: U: Build and preserve affordable housing, particularly for low-income families.
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Housing Initiative (Goal 6): Choose an item.
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
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8/29/2023 |
181 |
Approval of guidelines and an amended policy related to exemptions of ad valorem taxation for certain multifamily rehabilitation or construction project properties. |
|
8/06/2024 |
159 |
Approval of guidelines and an amended policy related to exemptions of ad valorem taxation for certain multifamily rehabilitation or construction project properties. |
Location:
Address (if applicable): 0 Brundage Dr, Houston, TX 77090
Precinct(s): Precinct 1
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Anticipated Court Date: 3/19/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Paola Martinez, Manager of Policy and Partnerships, HCD
Attachments (if applicable): N/A