Department: Housing and Community Development
Department Head/Elected Official: Thao Costis, Executive Director
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request for approval of amended guidelines, application, and policy related to exemptions of ad valorem taxation for certain low-income multifamily rehabilitation or construction project properties.
end
Background and Discussion:
On April 4, 2023, Commissioners Court directed several county departments, including the Community Services Department (CSD), to establish a policy related to the approval of tax exemptions for certain low-income housing projects, as described by Texas Tax Code, Section 11.1825.
On July 18, 2023, Commissioners Court approved a policy related to exemptions of ad valorem taxation for certain multifamily rehabilitation or construction project properties and authorized CSD to work with relevant departments on guidelines associated with the policy to be submitted by August 29, 2023.
On August 29, 2023, Commissioners Court approved 2023/2024 guidelines and an amended policy related to exemptions of ad valorem taxation for certain multifamily rehabilitation or construction project properties.
On May 7, 2024 Commissioners Court directed the Office of County Administration, Housing and Community Development Department, Office of Management and Budget, Tax Assessor-Collector, and any other relevant County departments (1) to evaluate and present on how the current tax exemptions for nonprofit and Community Housing Development Organizations (CHDO) have helped the preservation of affordable rental housing in Harris County at the current 50% rate, (2) prepare a recommendation for an updated Countywide policy increasing the exemption rate to 100%, with request to the County Attorney’s Office to provide any further recommendations, and (3) bring the item back to Commissioners Court for final approval.
Housing and Community Development, along with other relevant stakeholders and departments, has since updated the policy to reflect an increase to up to 100% exemption rate, proposed guidelines, and an accompanying application process to continue providing exemptions to certain organizations for qualifying multifamily rehabilitation or construction projects. Approving these guidelines, application process, and amended policy will support such projects that add affordable housing units to the county's housing stock, thereby contributing to the housing unit development goals.
Expected Impact:
This policy and its accompanying guidelines and application process will have a fiscal impact on the County’s General Funds that will vary each fiscal year, depending on a determination made by the Office of Management and Budget (OMB).
Alternative Options:
Not passing this policy will maintain financial barriers to constructing or rehabilitating multifamily low-income housing units in a time where demand for such housing is extremely high.
Alignment with Goal(s):
_ Justice and Safety
_ Economic Opportunity
X Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
_ Governance and Customer Service
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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4/4/2023 |
293 |
Direct CSD and other departments to create policy |
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6/27//2023 |
301 |
Update on policy |
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7/18/2023 |
179 |
Approval of policy and authorization for CSD to work with relevant departments on guidelines to be submitted by August 29, 2023. |
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8/29/2023 |
181 |
Approval of guidelines and policy. |
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5/7/2024 |
224 |
Direct HCD and other department to review and update guidelines and policy. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: August 6, 2024
Anticipated Implementation Date (if different from Court date): N/A
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Paola Martinez, Manager, Policy and Partnerships
Attachments (if applicable): Amended policy, guidelines, and application