Council backs tax-credit applications for three apartment complexes; public speaker raises concerns about Lennar home sales

On Jan. 14 the Kerrville City Council unanimously approved two resolutions supporting applications to the Texas Department of Housing and Community Affairs (TDHCA) for tax-credit funding for three apartment complexes: The Meadows, The Oaks and Paseo de Paz.

City staff presented the resolutions as required declarations for applicants seeking competitive federal/state low-income housing tax credits. Mr. Hornace (city staff) said the resolutions are renewals of support used in previous rounds; the properties would receive funds if they score competitively in TDHCA’s process. "These owners are requesting permission to apply through TDHCA for a tranche of funds for the tax credit program," Hornace said. The council voted to approve the first resolution (Resolution 01-2025) and the second required declaration (Resolution 02-2025) unanimously.

During the public-comment portion of the meeting, resident George Brutti (Brutti) addressed a separate housing concern about sales in a Lennar Homes development. Brutti said the contract governing a phase of Lennar homes required sale prices to be below a maximum and to meet TDHCA affordability definitions, and he alleged many sales did not match the contract terms. "If you look at the sale price part...what goes into a sale price? Whatever they paid cash down plus whatever amount they financed," Brutti said, and he pointed to mortgage records showing many buyers financed more than $275,000. He warned that borrowing amounts above the contract limit could leave the city with an enforceable remedy in the contract, including repurchase of donated land by the developer if terms are violated, and urged the council to examine compliance with contract terms.

City staff did not take immediate enforcement action during the meeting; Brutti’s remarks were received as public comment. Staff and councilors indicated they heard the concern and that the housing items on the agenda pertained to the tax-credit applications; the approved resolutions are required declarations for those applications.

The resolutions do not themselves appropriate funds or change rent levels; they enable property owners to apply for tax-credit funding that, if awarded, would support rehabilitation and preservation work while serving low-income households.