Heath council backs TDHCA tax-credit application for 89-unit senior housing at 217 Lawrence Drive

The Heath City Council on Feb. 25 unanimously approved a resolution supporting a developer's application to the Texas Department of Housing and Community Affairs (TDHCA) 9% Housing Tax Credit program for an 89-unit senior rental development proposed at 217 Lawrence Drive.

At the meeting, consultants and the developer described the project as an age-restricted, deed-restricted senior rental community with one- and two-bedroom units, amenity spaces and on-site management. "We're very excited about this proposal," David Shashawn, a consultant representing Owen Housing, said, outlining a three-story building on roughly 3.7 acres, an estimated investment of about $23 million and a timetable that would close and begin construction in early 2026 if tax credits are awarded.

The proposal includes 32 one-bedroom and 57 two-bedroom apartments (roughly 600 and 850 square feet respectively), about 61 parking spaces, a leasing center and indoor and outdoor amenity spaces such as a fitness room, community room, gazebo and accessible pathways. Shashawn said the project would be restricted to active seniors and that occupancy restrictions would be enforced by deed restriction, the state, lender and investor.

Why it matters: Council members and staff said the project could help catalyze activity in the Town Center overlay adjacent to retail and municipal services. The developer said the site's location next to the town center would support walkability and local businesses, and that the tax-credit award would be determined competitively by TDHCA in July.

Concerns raised: Several speakers earlier in the meeting during public comment expressed worries about a proposed large senior development in the community, saying it could increase demand on emergency medical services and traffic and that long-term use could change if owners later repurpose the property. One public commenter noted examples elsewhere where developments originally marketed for seniors later changed uses.

Council and staff said the property is currently in the Town Center overlay, which does not permit multifamily residential uses without code amendments; staff reiterated that any zoning or code changes would require separate council approvals. City staff and the applicant said the tax-credit application being supported tonight is a preliminary step: if awarded credits the applicant would work with the city on the necessary plan and zoning changes before construction approvals proceed.

Timeline and process: The applicant submitted a pre-application Jan. 9. With council's resolution the team said it will submit the full TDHCA application within the state's compressed timeline; if awarded credits the project team expects to seek the city's code and zoning approvals this summer and begin construction in early 2026 with completion targeted in 2027.

Council action: The council's motion to provide a resolution of support was made from the dais and seconded by Councilmember McAllister. The motion passed unanimously.

What remains unresolved: The council's endorsement to support the tax-credit application does not change the property's zoning; any rezoning or text amendment to permit a senior multifamily development in the Town Center overlay would require additional hearings and council approval. Several residents asked that the city verify permits and prior unpermitted improvements on the site and adjacent properties as the design and entitlement process continues.