Tomball council declines to back developer's 9% housing tax credit application after heated public opposition

TOMBALL, Texas ' The Tomball City Council voted on Feb. 16 not to support RBM Living's application to the Texas Department of Housing and Community Affairs (TDHCA) for competitive 9% low-income housing tax credits for a senior housing project called the Enclave at Tomball Square (TDHCA project #26114).

The vote concluded a lengthy public hearing in which several residents urged the council to oppose the application and the developer defended the financing model. "It's not a Section 8 property," developer Matt Malmquist said during his presentation, adding that the 9% federal tax-credit structure allows higher-quality finishes and a financial model that keeps more units affordable. "We're seeking no tax relief or reduction or benefit from the City of Tomball," Malmquist said.

Residents who testified cited public-safety and service concerns, fiscal impacts and neighborhood compatibility. Becky Klepper, a Tomball resident, told the council, "I'm totally against this development" and cited worries about ambulance demand and tax burdens. Jeff Yuna, an adjacent property owner, said he feared the project would devalue neighboring properties.

Council members grappled with what the council's vote would actually accomplish. Staff and several council members reiterated that the council was voting only on whether to express municipal support for RBM's competitive 9% TDHCA application; a city endorsement is one factor in TDHCA's scoring but does not by itself authorize construction or rezoning. Staff also noted the state application deadline and that lack of local support or a decision to table the item would effectively count as a no to the application.

The mayor read into the record a letter from state representative Tom Oliverson's office opposing the award for this project. After discussion, the motion to support the application failed on the council floor (clerk recorded: "Motion fails"). The council did not adopt a formal endorsement.

What developers and staff told the council

Matt Malmquist, the project representative, described the development as a senior, income-restricted property under the LIHTC (Low-Income Housing Tax Credit) program. He rejected several characterizations offered by some residents: "There's no HUD Section 8 in this project," he said, noting the LIHTC program sets income and rent limits by Area Median Income (AMI) tiers and that the owner plans a mix of restricted and market-rate units to make the financing work. Malmquist said the 9% credits are monetized by sale to banks, which supplies equity for the project.

Malmquist also said the project could be built without 9% credits but would likely require a larger unit count or alternative incentives; he stressed the 9% path lets the developer offer more amenity value and plan for periodic refreshment of the property.

Public reaction and next steps

Many speakers told council they opposed additional tax-credit housing within Tomball, raising traffic and school-district impacts and asking whether the units would serve local residents. Council members acknowledged those concerns; one council member described his position as a "reluctant no" after hearing substantial opposition.

Because TDHCA conducts a competitive scoring process and the state representative's office submitted opposition, the lack of municipal endorsement reduces the local support score but does not automatically eliminate the application. The developer may still submit the application and the state will score it according to TDHCA rules.

Authorities and related rules referenced

- Texas Department of Housing and Community Affairs (TDHCA) - Texas Local Government Code and the state's tax-credit program rules - Letter received from state representative Tom Oliverson opposing TDHCA project #26114

Speakers (as recorded in the meeting)

- Matt Malmquist, developer, 6700 Woodlands Parkway, The Woodlands (first on record: SEG 2540) - Becky Klepper, Tomball resident (first on record: SEG 2037) - Jeff Yuna, neighboring property owner (first on record: SEG 2206) - Rosemarie Hubbard, Tomball resident (first on record: SEG 2135) - Diana Blair, business owner / resident (first on record: SEG 2198) - Mayor Lori Winn (mayor) (first on record: SEG 1463)

Actions and outcome

- Motion: Support RBM Living's application to TDHCA for 2026 competitive 9% housing tax credits (Enclave at Tomball Square, TDHCA project #26114). Mover (from earlier meeting): Councilman Garcia; seconder: Councilwoman Covington (motion originally made at prior meeting and carried into tonight's discussion). - Vote: Motion to support the application failed (clerk recorded: "Motion fails").

Why it matters

The council's decision means Tomball will not provide a formal municipal endorsement for the developer's competitive 9% application, a factor TDHCA considers in scoring. The developer indicated the project could still be built using other financing but that the absence of 9% credits could change the unit count or require alternative incentives. The matter remains subject to future state review and any later local zoning or permitting processes.