On June 4, 2019, (M&C C-29138) the City Council authorized the change in use and expenditure of additional HOME Investment Partnerships Program grant funds in the amount of $95,356.00 for a total contract amount of $402,500.00 in the form of a subordinate forgivable loan to Housing Channel, a certified Community Housing Developer Organization, for the development of up to five houses for the Riverside Single Family Infill Development located in the United Riverside Neighborhood and in Neighborhood Empowerment Zone (NEZ) Area Four. Housing Channel will construct five low-income single family homes, each with an approximate value of $153,400.00 and 1,500 square feet. See attached. The homes will be sold to low-income buyers as a primary residence.
The Neighborhood Services Department reviewed the application and certified that the property owner and Project met the eligibility criteria to receive a Neighborhood Empowerment Zone (NEZ) Municipal Property Tax Abatement. The NEZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements will be subject to the tax abatement for a period of five years starting January 2020 or thereafter depending on the completion of each home.
The municipal property tax on the improved value of each home after construction is estimated in the amount of $1,204.19 per year for a total amount of $6,020.95 per home over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant Appraisal District appraised value of each property.
In the event of a sale of the properties, the NEZ Tax Abatement Agreement may be assigned to a new owner's first mortgagee or a new homeowner as their primary residence. All other assignments must be approved by the City Council.
The properties are located in COUNCIL DISTRICT 8.