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 an exemption from ad valorem taxation at 50% of the appraised value of the property for the Harris County jurisdiction for the Avenue Community Development Corporation for the Elder Street Artist Loft property located at 1101 Elder Street, Houston, Texas 77007, 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. In an effort 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 2024, the Application Period was January 1 to March 1.
Within this time period, Harris County Community Services received a complete application from the applicant and property described below. Since then, staff from Community Services, Management and Budget, and the County Attorney 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 recommendation:
• Eligible Organization: Avenue Community Development Corporation
• Eligible Property: Elder Street Artist Loft property located at 1101 Elder Street, Houston, Texas 77007, (Precinct 1)
• 2024 Fiscal Impact: $4,372
• Affordable Housing Analysis: HCD has determined the need for additional affordable rental housing for areas experiencing rapid increases in housing prices and experiencing gentrification, which fits this project. It is recommended to approve the property tax exemption.
Pursuant to Texas Tax Code §11.1825, after Commissioners Court renders a decision on the exemption, Community Services will notify the applicant and the Harris Central Appraisal District (HCAD).
If Commissioners Court approves the recommended 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 2024 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 the Harris Central Appraisal District, 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 2024. For the 2024 program year, the Housing Exemption Cap approved by Commissioners Court is $1,500,000, and the Office of Management and Budget has determined that granting this exemption for this property would not cause the County to exceed the aggregate tax loss limit that Commissioners Court set for this purpose.
Alternative Options:
Not approving the application will prevent the application from being considered for a potential tax abatement by the Harris Central Appraisal District (HCAD).
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):
|
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. |
Location:
Address (if applicable): 1101 Elder Street, Houston, Texas 77007
Precinct(s): Precinct 1
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Anticipated Court Date: March 26, 2023
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, Strategic Projects Manager, HCD
Attachments (if applicable): OMB Fiscal Impact Summary; CSD Affordable Housing Analysis; Court Order