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Elgin City Council unanimously voted yes on a resolution of no objection for upcoming tax-exempt, multi-family and low-income development, The Katy.
Following several public hearing speakers and a presentation from the project’s developer during this month’s council meeting, the motion was carried out after its initial split vote a few months prior.
“Workforce housing is really key, it is key to having a robust and secure employee base who strengthen our communities through their jobs, city and county services, hospitals and clinics, schools and more,” said Debbie, a Bastrop County resident of 55 years.
Rather than developers turning a profit from building cheap housing with higher rents, affordable housing projects save their money from tax credits and pass the savings onto the community with rent-controlled facilities, added another speaker.
“There is no one on this council that does not know that we need low-income housing or affordable housing, that’s a give in. How we do it is what the concern is,” said Mayor Theresa McShan.
The Katy project developer applied for The Texas Department of Housing and Community Affairs 4% Housing Tax Credit Program. Now secured, they will sell the credits to tax credit investors, typically big banks, where they will be reinvested into the community that they represent, according to the leader.
“In real estate, the biggest and most observable problem is housing for the workforce,” said Roger Plourde, managing principal at Ivy Companies. “This is just an absolutely wonderful location for this type of housing, it’s something that gives instant, really convenient access to all of these essential life services that people need to live.”
Coming to 601 W. Second St., The Katy’s tax exemption is contingent on upholding agreed upon standards. They will be following income limit restrictions, maintain quality of construction and ongoing maintenance standards and must include committed amenities: a work-from-home lounge, pool, furnished community area, grilling stations, electronic vehicle chargers and more.
Ivy Companies will also be required by the TDHCA to provide a minimum of 15 hours weekly, organized onsite educational services to school-age children.
Compared to other market-rate multi-family homes, The Katy brings more guarantees, inspections, quality housing, restricted rents and amenities, added Plourde.
Rents are typically calculated as about 30% of income for individuals or families earning about 60% of the median income for the Austin area, according to the representative.
The Katy developers conducted an in-depth market study specific to Elgin to determine rent costs more accurately. They found that the median income is around $7,000 less than the Austin area, which will lead to discounts ranging between 14% and 33%, according to the team.
Several jobs in the Elgin workforce would qualify for The Katy, including Elgin Independent School District workers, added the speaker.
From here, The Katy developers will race to get applications into the bond review board to begin construction.
While this agreement does not guarantee that the project will be built, according to City Manager Thomas Mattis, it will lead to a development agreement.
An estimated start date for construction is slated for July 2024, to be completed by December 2025.
“There is no one on this council that does not know that we need low-income housing or affordable housing, that’s a give in. How we do it is what the concern is.”
— Mayor Theresa McShan
