Denton City Council Reviews Waterford at Spencer Oaks Affordable Housing Renovation Request

Denton City Council has taken a significant step towards preserving affordable housing in the community by approving a resolution of no objection for the refurbishment of Waterford at Spencer Oaks, an existing affordable housing development. This decision, made during the council meeting on August 5, 2025, allows the project to apply for a 4% housing tax credit, which is essential for funding the renovations.

The Waterford at Spencer Oaks complex, located on Spencer Road, has been providing affordable housing since its establishment in 1996. With its initial 30-year affordability period coming to an end, the developer plans to invest approximately $80,000 into each of the 208 units for extensive refurbishments. This investment aims to enhance the quality of living for current residents without increasing rental costs for low-income households.

City staff recommended the approval, emphasizing that the project aligns with Denton's policy of rehabilitating existing affordable housing. The refurbishment will not only maintain the affordability of the units but also prevent potential displacement of current residents during the renovation process.

Council members raised concerns about the implications of not approving the resolution. If the council had rejected the request, the property would have lost its affordability protections, potentially leading to increased rents and a decline in the quality of housing available to low-income families.

The council also discussed the partnership with a community housing development organization (CHDO) that will facilitate a 50% property tax exemption for the project. This collaboration is crucial for ensuring that the renovations can proceed while keeping the units affordable.

In addition to the resolution for the tax credit, the council is set to consider multifamily revenue bonds related to the project in a subsequent agenda item. This dual approach aims to secure the necessary funding for the refurbishment while reinforcing the city's commitment to affordable housing.

As Denton continues to address housing challenges, the council's decision marks a proactive measure to enhance living conditions for its residents and maintain the availability of affordable housing options in the community. The council plans to further evaluate its housing policies in a work session scheduled for November, indicating a commitment to ongoing discussions about affordable housing strategies in Denton.