Primary Department: Housing and Community Development
Primary Department Head/Elected Official: Thao Costis, Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Discussion Item
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):
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Request for discussion and possible action regarding an application for exemption from ad valorem taxation of the appraised value of the property for the Harris County jurisdiction for the NHP Foundation for Cleme Manor located at 5300 Coke St., Houston, TX 77020 pursuant to Texas Tax Code §11.1825.
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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.
One 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 application period, HCD received a complete application from the applicant and property described below. Since then, staff from HCD, OMB, and CAO have worked together to: determine that the organization and property referenced in the application preliminarily qualify as an Eligible Organization and Eligible Property; provide an analysis of the fiscal impact to the County if a tax exemption were to be granted (included in the attached backup); and provide an analysis of need for low-income affordable housing near the property (included in the attached backup).
Summary of application:
• Organization: NHP Foundation
• Property: 5300 Coke St., Houston, TX 77020 (Precinct 1)
• 2025 Fiscal Impact: up to $44,792
• Affordable Housing Analysis: HCD has determined the need for additional affordable rental housing for areas experiencing rapid increases in housing prices and experiencing gentrification, including this area. Although this property is meant to provide affordable rental housing in a needed area, HCD also believes that this property fails to meet Harris County’s minimum property standards and fails to provide decent, safe, and sanitary housing to its residents. Therefore, HCD recommends Commissioners Court, due to the condition of this property, consider a lower tax abatement rate or other alternatives in response to the tax exemption request for this property for the 2025 tax year.
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).
If Commissioners Court decides on and approves the exemption, the applicant must complete any requirements from the HCAD to be granted the exemption. As stated in the County’s policy, the County cannot guarantee when HCAD will process such applications and apply exemptions grants after receiving a complete application. HCAD, in its sole discretion, will determine the tax year to which successful 2025 Applicants’ exemptions will be applied. Pursuant to Texas Tax Code, Section 11.1825, HCAD is the entity with final authority over granting a tax exemption in Harris County.
Expected Impact:
No immediate fiscal impact until exemption approval is determined by HCAD. Approving this application will allow the applicant to move forward with applying for an exemption with HCAD, who will make the final determination year-to-year on if such abatements are allowable under applicable state law. The earliest the exemption may take place is for tax year 2025. For the 2025 program year, the Housing Exemption Cap approved by Commissioners Court is $1,500,000.
Alternative Options:
Not approving the application will prevent the application from being considered for a potential tax abatement by HCAD.
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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Additional notes related to the Strategic Plan:
Prior Court Action (if any):
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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): 5300 Coke St., Houston, TX 77020
Precinct(s): Precinct 1
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Anticipated Court Date: 4/10/2025
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Paola Martinez, Manager of Policy & Partnerships, HCD
Attachments (if applicable): OMB Fiscal Impact Summary; HCD Affordable Housing Analysis; Court Order