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Waco staff recommends backing three TDHCA housing tax credit applications, asks council to waive 15% market-rate rule
Summary
City staff recommended council letters of support for three 2026 Texas Department of Housing and Community Affairs tax-credit applications (Trails Apartments, Estuary Waco, Devonshire Station) and proposed waivers of a 15% market-rate unit policy to improve competitiveness; applications are due Feb. 27 with awards expected by July.
Galen Price, director of housing and community development, presented three requests for resolutions of support for 2026 housing tax credit applications to the City Council on Feb. 17.
The proposals are: • Trails Apartments, located at the northwest corner of Girly and 21st Street, estimated at approximately $22,000,000 to develop up to 121 two‑ and one‑bedroom family units; proposed amenities include energy‑efficient appliances and community/business space. • Estuary Waco, a partnership between Friends for Life and the Vicino Group at 1704 South 18th, estimated at $18,700,000 to develop 65 units of supportive housing for people with disabilities and include on‑site supportive services. • Devonshire Station, in the Waco extraterritorial jurisdiction (ETJ), a partnership between Waco Housing Authority and Housing Solutions Alliance to build about 66 senior cottage‑style units for just under $24,000,000; the county has already provided a letter of support for that site.
Price told council staff recommended resolutions of support for each project and asked council to approve a waiver of the city's 15% market‑rate unit policy for these applications to maximize credit valuation given current market conditions. "It is still part of our policy," Price said of the waiver process, noting that each waiver would still require council approval and that staff believe the proposed rents at 80% of area median income are functionally similar to market rates in today’s market.
Price said staff did not receive negative neighborhood feedback on these requests and reminded council the TDHCA submission deadline is Feb. 27, with notice of awards expected in July. If funded, the projects would proceed through city development review with the goal of construction beginning in 2027.
Council members asked whether waivers would set a precedent; Price replied that waivers are considered per application and must be approved by council. The council took no formal votes in the work session; the items appear on the business session agenda for possible action later in the meeting.
