VHFC Financial Update

Construction on a new, affordable workforce housing development, Enchanted Gardens Apartment, began in August 2021. Realtex Development Corporation purchased the property on North Ben Jordan Street from the City in July. The $32 million project is primarily financed through bonds issued by the Victoria Housing Finance Corporation, a nonprofit housing finance corporation led by a board of three City Council members, and through the Texas Department of Housing and Community Affairs’ noncompetitive 4% housing tax credit program. Enchanted Gardens will be Victoria’s first new housing development since 2007 to leverage federal low‐cost housing tax incentives. The development will create 168 housing units and more than 200 temporary construction jobs. The complex began leasing units in November 2022, and construction is anticipated to be completed in June 2023. Housing at Enchanted Gardens will be reserved for residents who earn up to 60% of Victoria’s median family income, which is about $43,300 for a family of four, according to the U.S. Department of Housing and Urban Development.

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The NRP Group, a multi‐family residential developer, is proposing to build a new 324‐unit workforce housing community on the southside in the Silver City neighborhood. The development is called Odem Street Apartments and will be located on an 18.5 acre tract at 2303 Odem Street. It is hoped that this development will serve as a catalyst for revitalizing the Southside of the City. The development will have 12 three‐story buildings with 1‐4 bedrooms. It will also have a standalone clubhouse with state‐of-the‐art amenities and resident services to include a business center, 24/7 fitness center, swimming pool, children's activity room, community room & kitchen, washer & dryer connections, package concierge, granite countertops, modern cabinetry & flooring, energy‐star appliances, walk‐in closets, 9' ceilings, and spacious balconies.

The total development cost is estimated at $57,000,000. The development will be financed by the State's non‐competitive 4% Housing Tax Credits program managed the Texas Department of Housing and Community Affairs (TDHCA) and Private Activity Bonds issued by the Victoria Housing Finance Corporation. The 324‐unit mixed‐income community will have rents ranging from market rate to affordable for those individuals and families earning at or below 70% of the area median income. Monthly rent will range from about $320 for a 1‐bedroom unit to about $1,300 for a 4‐bedroom unit. The project is being built to target working individuals and families in need of affordable housing near their place of work. Project is currently on hold.

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To promote homeownership, an HFC Land Bank Program, or "Infill Development Program", is being proposed with the objective of acquiring vacant, problem, or distressed properties within existing urban areas that are already largely developed, and return them to productive use for affordable homeownership opportunities. There are significant amounts of vacant and underdeveloped land in the inner-city, especially in older areas on the south side of town, which can be utilized for affordable housing. The Program will allow the City to achieve the following:

• Identify exiting vacant or under-utilized sites or parcels within the inner-city in order to establish a land bank.
• Hire a land use attorney in order to create a legal framework to allow infill residential development through the City Code and create a strategy to clear up property title issues and address property liens
• Evaluate a tax rebate program to promote affordable housing and non-profit development