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Developer seeks council's "no objection" to finance Palms apartment rehabilitation; council to consider resolution at next meeting
Summary
Streamlined Advisory Partners/IBEX told council they plan to apply for tax-exempt bonds and 4% low-income housing tax credits to rehabilitate the 50-year-old Palms Apartments; the developer said it is not seeking a tax exemption, intends to retain the property for at least 15 years, will honor existing leases and include a relocation budget for any temporary moves. Council instructed staff to draft a resolution of no objection for a future vote.
Developer representatives outlined plans to rehabilitate the Palms Apartments and requested that the City of Lake Jackson issue a resolution of no objection (RONO) so they can apply for tax-exempt bond allocation and associated 4% low-income housing tax credits.
Joel Pollock, managing partner of Streamlined Advisory Partners in partnership with IBEX Real Estate Partners, said the property is 50 years old and currently about 70% occupied. "We intend to renovate the entire community," Pollock said, adding the developer will "honor" existing leases and has a relocation budget for tenants who need to move during phased work. He told council the 60% AMI units have rent limits set by HUD and that the team is not asking the city for a property tax exemption as part of the financing.
Council members pressed for details about displacement, rent impacts and timeline. Pollock said typical renovation phasing would rehabilitate 5'10 units at a time, and the developer aims to apply for bonds immediately and close financing before the end of the year. City staff told council the city must adopt a RONO to enable the developer to pursue the 4% tax-credit financing; council agreed to ask the city attorney to draft a resolution for formal consideration at a future meeting so the public can comment during that hearing.
The proposal was discussed extensively but no formal RONO was adopted at the April 6 meeting; council directed staff to return with a draft resolution for a subsequent vote.
