Primary Department: Housing and Community Development
Primary Department Head/Elected Official: Thao Costis
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular 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 for approval of recommendation to increase the tax exemption rate for the previously approved properties (2023 and 2024 applicants) from the original 50% to the newly approved 100% Harris County ad valorem property tax rate for year 2025 forward.
end
Background and Discussion:
On Dec 5, 2023, Commissioners Court approved a 50% property tax exemption for affordable multifamily rental housing located at the following five (5) properties:
• Avenue Station property located at 2010 N. Main Street, Houston, Texas 77009
• Avenue on 34th property located at 2136 W. 34th Street, Houston, Texas 77018
• Irvington Court property located at 4004 Irvington Blvd., Houston, Texas 77009
• Avenue Terraces property located at 4004 Irvington Blvd., Houston, Texas 77009
• Sunrise Village property located at 7526 Martin Luther King Jr. Blvd., Houston, Texas 77033
On March 26, 2024, Commissioners Court approved a 50% property tax exemption for affordable multifamily rental housing located at the following two (2) properties:
• Elder Street Artist’s Lofts property located at 1101 Elder Street, Houston, Texas 77007
• Avenue Redwood Heights property located at 7320 Jensen Drive, Houston, Texas 77093
On August 6, 2024, Commissioners Court approved 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%. For the 2025 program year, the Housing Exemption Cap approved by Commissioners Court is $1,500,000.
Today, Housing and Community Development (HCD) is requesting to increase the previously approved properties from 50% to 100% exemption. HCD is submitting this request to ensure that all eligible properties can access the maximum benefit without exceeding the $1.5 million cap. Ultimately, Harris County Appraisal District (HCAD) retains the authority to determine the final exemption percentage.
Expected Impact:
The estimated tax revenue loss for all seven properties at 100% rate would be about $108,216 annually moving forward, a difference of about $55,000 from the revenue loss at 50% rate, depending on the appraised value. This policy will have a fiscal impact on the County’s General Funds that will vary each fiscal year, depending on a determination made by HCAD.
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.
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.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan: supports preservation of new/existing multifamily and single-family stock.
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
12/05/23 |
101/102/103/ 104/105 |
Approval of an exemption from ad valorem taxation at 50% of the appraised value of the property for the Harris County jurisdiction for the properties listed above, pursuant to Texas Tax Code §11.1825. |
|
03/26/24 |
246/247 |
Approval of an exemption from ad valorem taxation at 50% of the appraised value of the property for the Harris County jurisdiction for the properties listed above, pursuant to Texas Tax Code §11.1825. |
|
08/06/24 |
159 |
Approval of amended guidelines, application, and policy related to exemptions of ad valorem taxation for certain low-income multifamily rehabilitation or construction project properties. |
Location:
Address (if applicable): Multiple (see background)
Precinct(s): Precincts 1 & 2
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Anticipated Court Date: 3/27/2025
Anticipated Implementation Date (if different from Court date): 3/27/2025
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Paola Martinez - Manager, Policy & Partnerships
Attachments (if applicable): Court Order, Approved Property Evaluations, and Approved Amended Policy