Consider and take appropriate action to approve a resolution authorizing a proposed Travis County Facilities Corporation multi-family development known as the Perch Manor Downs, located at 9001 Hill Lane, Austin, Texas, a public facility corporations project sponsored by the Housing Authority of Travis County, pursuant to Local Government Code Section 303.0421(b)(4). (Judge Brown & Commissioner Tr

Staff Report & Agenda Item Details

On June 18, 2023, the 88<sup id="isPasted">th</sup> Legislature established that public facility corporations must, among other requirements, request approval from a municipality or county government prior to the authorization of tax exemption for any project.  More specifically, the Public Facility Corporations Act, Chapter 303 of the Local Government Code, as amended, (the “Act”), in Section 303.0421(b)(4) states:<br>(b)      Notwithstanding Section 303.042(c) and subject to Subsections (c) and (d) of this section, an exemption under Section 303.042(c) for a multifamily residential development to which Subsection (a) applies is available only if:<br>(4)      if a majority of the members of the board are not elected officials, the development is approved by the governing body of the municipality in which the development is located or, if the development is not located in a municipality, the county in which the development is located;<br> <br>The Housing Authority of Travis County (“HATC”) is a sponsor for the project referenced herein, as defined by Section 303.003(11) of the Act.<br> <br>Section 303.021(a) of the Act provides as follows:<br>(a)      A sponsor may create one or more nonmember, nonstock, nonprofit public facility corporations to:<br>(1)      issue bonds under this chapter, including bonds to purchase sponsor obligations;<br>(2)      finance public facilities on behalf of its sponsor; or<br>(3)      loan the proceeds of the obligations to other entities to accomplish the purposes of the sponsor.<br> <br>HATC has created the Travis County Facilities Corporation (“TCFC”), a nonmember, nonstock, nonprofit corporation pursuant to Section 303.021(a) of the Act.<br> <br>Additionally, Section 303.021 (d) of the Act provides as follows:<br>(d)      A corporation or a sponsor may finance, own, or operate a multifamily residential development only if:<br>(1)      the corporation or sponsor complies with all applicable provisions of this chapter; and<br>(2)      the development is located:<br>(A)      inside the area of operation of the sponsor, if the sponsor is a housing authority; or<br>(B)      if the sponsor is not a housing authority, inside the boundaries of the sponsor, without regard to whether the sponsor is authorized to own property or provide services outside the boundaries of the sponsor.<br> <br>Therefore, the Housing Authority of Travis County (“HATC”), will serve as the project sponsor via its public facility corporation, the Travis County Facilities Corporation, for the proposed workforce housing project known as the Perch Manor Downs (the “Project”), and as stated above, due to Section 303.0421(b)(4) of the Act, TCFC needs to obtain approval from the governing body of the county in which the development is located, which in this case is the Travis County Commissioners Court, before the project may go forward. <br>  <br>The Project is a 352-unit Class A build-to-rent development located in Northeast Austin, in Precinct 1. T