Council approves $1.16M package to back Palms at Morris affordable housing project

Corpus Christi City Council on a majority vote approved local subsidies and related concessions to support Palms at Morris, a low-income senior housing project developed by Prospera/ TG 110.

The council debated an item that combines a $1,160,000 HOME/type-B loan at 3% interest with fee deferrals, waived easements and a $510,000 city land conveyance. Council members heard about the project's financing and the history of neighborhood revitalization before voting to approve the development agreement.

The housing proposal drew public comment from current and former residents of Prospera-managed properties, who urged council support. Janine Carrasco, a resident who said she had lived at Hacienda Senior Apartments for 10 years, told the council, "I love Prospera. I ask you to support Prospera Project for more affordable housing." Several other residents repeated requests for continued city support.

Why it matters: Council members said the project is intended to bring new affordable rental options and help ongoing West Side revitalization. The item had drawn extended scrutiny because staff recommended multiple forms of subsidy (land sale, deferred fees, HOME funds and a deferred developer fee), and because Prospera has been a frequent awardee of federal tax credits in the region.

What council and staff said Brad McMurray, vice president of property development for Prospera, described the project's financing to council and responded to questions about deferred developer fees and long-term payback. "The total developer fee on this project is $2,260,000.00," McMurray told the council; he later explained that tax-credit underwriting limits how much developer fee can be deferred and still be considered a loan.

Jennifer Buxton, Planning and Community Development, confirmed the outstanding HOME balance for Prospera properties when asked by council. In response to questions about local underwriting and precedent, staff said the city's terms (including a 3% HOME loan) had been used on prior projects and that staff would pursue a standardized policy for city subsidies going forward.

Council members split along policy and perception lines during debate. Councilman Gil Hernandez pressed staff and the developer for details on prior loans, developer fees and the economics of deferred payments. Councilman Everett Roy, whose district includes the site, described the project as a step in long-range West Side revitalization and said the local land conveyance and concessions were aimed at making the development feasible.

Outcome and conditions The council approved the motion to support the Palms at Morris project. Staff and the developer will proceed with the financing package and required contract documents; the approved transaction includes the $1,160,000 loan at 3% and related concessions as presented to council. The motion carried following public comment and extended debate.

Context and next steps The development uses federal low-income housing tax credits and local HOME/Type-B funds. Staff said Prospera maximized tax credits and used other subsidy sources (including deferred developer fees and federal capital magnet funds) to bridge construction cost increases.

Council members asked staff to draft a single transparent policy for future local subsidies (HOME, Type-B, land or fee concessions) to improve public clarity and guard against perceptions of favoritism. Council also asked staff to publish comparisons to other Texas programs and to return with recommended policy language.

Ending Council supporters framed the Palms at Morris project as a continuation of neighborhood revitalization and a source of new affordable senior units; critics stressed the need for clearer subsidy rules and transparency about repeated awards to the same developer. The developer will continue permitting and financing steps now that council has authorized the city's subsidy package.