More FB County Apartments Being Forced on Area Residents By A San Antonio Developer (from the Chronicle)-
Fort Bend County News
April 12, 2006, 9:18PM
Petitions circulated against apartments
Developer applies to state for tax credit
By FLORI MEEKS
Chronicle Correspondent
A low-income apartment complex proposed for the corner of Louise and Airport Drive in Rosenberg has been generating resistance from residents and city officials.
Rosenberg City Council made its position clear March 21 when it voted 4-1 to adopt a resolution opposing the development project.
But Greg Thorse, the president of San Antonio-based Commercial Investment Services, said Rosenberg can benefit from additional affordable housing, and he is attempting to move forward with the Providence Estates apartments.
He said he is proceeding because he already has invested a lot of time and effort into the development, and he believes there's much demand for "affordable" housing.
Thorse submitted a Housing Tax Credit application for the development with the Texas Department of Housing and Community Affairs March 31.
The federal Housing Tax Credit program is administered by the state. It was developed to channel private capital toward the creation of affordable rental housing.
Participating developers are permitted to offset a percentage of their federal tax liability in exchange for their investment in the rental housing. . . . (for the rest of this article click on the title link above)
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CRD Comment--Don't you wonder where these guys get their information from (it sounds pretty canned from one dev. to the next)? Usually it's an industry think tank called the ULI (for Urban Land Institute) or the ABA is the other crowd. This group's research is supported by the developer trades and works over-time to dispell conventional wisdom on housing and developer's less desireable projects that hurt over-all area planning. Some of the quotes later in the article by Mr. Thorse are informational spin from this organization. He fails to mention the negative impact on schools, but he does mention their real motive for building these (the tax incentive and the market demand---and for them, IMHO, that is all that matters). We want to wish Mr. Schwartz the best in this and ask him to contact us if he needs assistance at responsible_dvlpmnt@yahoo.com. Good luck with the petition (we collected 1100+ against this type of development over a 3 month period, but found our developer backed mayor was way ahead of us and pushed the project through anyway here in Missouri City.
posted by responsible_dvlpmnt at Thursday, April 13, 2006
9 Comments:
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Related article (from: http://www.chron.com/disp/story.mpl/special/05/legislature/3172926.html):
Low-income housing could be overhauled
Lawmaker hopes bill will level field, but critics fear it will hurt poorest
By MIKE SNYDER
Copyright 2005 Houston Chronicle
A year ago, Julian and Martha Rojo and their three children moved into a three-bedroom house near El Paso they had built mostly with their own hands. Their monthly mortgage payments are $406 — considerably less than the average rent for a two-bedroom apartment in the area.
"For me, it's very beautiful," Martha Rojo said of the house, which she and her husband, a truck driver, built over the course of a year with help from relatives and friends. "We built it ourselves. How could it not be beautiful?"
The Rojos are among hundreds of low-income Texans who have built homes with financial assistance from the Bootstrap Self-Help Housing program, administered since 1999 by the Texas Department of Housing and Community Affairs.
A bill scheduled for consideration by the Texas House of Representatives on Tuesday would eliminate the Bootstrap program in a major revision of the law that governs the state housing agency. It would be the second overhaul of the agency since a scandal that sent a board member to prison in 2001 for taking bribes.
Focus on apartments
The bill by Rep. Robert Talton, R-Pasadena, would reduce incentives to develop housing affordable for the poorest Texans while generally shifting the agency's focus toward apartments rather than homeownership programs such as Bootstrap and Habitat for Humanity.
It would remove the agency's authority to develop and revise rules for awarding low-income housing tax credits, the largest and most controversial state housing program. The bill would write the rules into law, meaning they could be changed only through legislative action.
The bill has alarmed advocates for the poor and leaders of nonprofit housing development groups, whose role in providing housing to low- and moderate-income Texans will diminish if the measure is signed into law. Almost 100 individuals and organizations signed a letter opposing the bill, and leaders of Houston nonprofits have scheduled a news conference today to denounce it.
Reaching the suburbs
Talton's bill "is the single worst housing bill from the standpoint of poor families, fair housing, disabled people and honest government that I have seen in my 28 years working on housing issues," said John Henneberger, co-director of the Texas Low-Income Housing Information Service in Austin.
Talton said he filed the bill in part because the TDHCA had failed to follow previous directives from the Legislature on how applications for tax credits should be scored.
Another key goal, he said, was to correct an "oversaturation" of low-cost housing in urban, inner-city neighborhoods and to build more developments in remote suburbs, or "exurbs," of the state's largest cities.
"We were getting calls from state representatives from inner cities saying, 'We want rehabilitation (of existing projects); we don't want more ghettos,' " Talton said. "What we're trying to do in the bill is to push it (low-cost housing) out farther to areas that need it."
Profit questions
Most of the witnesses who testified in favor of the bill at a March 15 hearing of the Urban Affairs Committee, which Talton chairs, are executives of for-profit development firms that specialize in affordable housing. Certain provisions in the bill would help for-profit firms receive a greater share of state-administered housing funds while reducing requirements such as the length of time they must keep rents low, thus increasing their potential profit.
For-profit developers, their lawyers and consultants, and leaders of a lobbying firm that represents them have contributed at least $18,000 to Talton since September 2003, Texas Ethics Commission records show. Talton received one contribution, for $100, from a nonprofit developer during that time.
Talton did not respond directly to a question about whether these donors had influenced the legislation. He said his intent was to open up the process of awarding state housing funds in a way that would benefit taxpayers and people who need affordable housing.
Much of the opposition to the bill is based on provisions that would reduce the level of assistance provided to families in the lowest income categories among those eligible for subsidized housing. In the Houston area, a family of four earning $18,300 a year or less is considered "extremely low income," and a family earning twice that amount is considered "very low income."
Changing eligibility
Under the bill, the agency's current goal of using a quarter of its housing funds to help families in these two income categories would only apply if the applicants could obtain additional subsidies from local government. The bill also would allow owners of apartment developments that receive state assistance to require that tenants have minimum income levels higher than the current standard.
"We have tried to find ways to provide benefits to those (developers) that provide housing to the very poor," said agency board member C. Kent Conine, a Dallas area home builder. "The ability for us to do that would be taken away by this bill, and that would be a shame."
Talton said his intent was to distribute housing assistance more equitably.
"TDHCA's policy has long been to provide housing to only one segment of those Texans that need it," he said. "It is my intent to broaden their emphasis to provide housing for every Texan in need of affordable housing."
Nonprofit housing developers often argue that the money they forgo in profits can be used to keep home prices or apartment rents lower, or to maintain below-market rents for a longer period of time.
Nonprofit vs. for-profit
Talton, however, said he thinks nonprofits have long received a preference from the state housing agency that they don't deserve.
"I have seen no evidence that nonprofits provide better housing than for-profit builders," Talton said.
His bill would diminish state funds available to nonprofits for single-family housing production by encouraging the use of these funds to supplement tax credits, used primarily by for-profit developers for apartment projects, said Sandra Williams, the executive director of Alamo Area Mutual Housing in San Antonio. . . for the rest of this story follow the link above. . .
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Related posts from FBNow.com:
1 Chris Calvin, Ph.D. - Apr 12, 02:06 pm
Some questions that should be asked about this indefinite hospital postponement and cancellation of the construction start:
-Why has it taken several months for the news to be released to the public? Christus apparently knew about this since the end of last year and the developers (Owen’s #2 contributor over the last 5 years) claim they’ve known since February and only released it on the Sienna internal website, which the rest of Missouri City doesn’t have access too, two weeks ago.
-Why was this critical information not released in a timely manner by our mayor and council so that the public could be protected and make appropriate healthcare choices in our community? Especially considering the hoopla last year when the Mayor and developer took bows for “bringing it here” and using it as one justification for the up to 2700 apartments injected into our neighborhood and city.
-Is the council now going to reconsider the Johnson Development apartments that will negatively impact our community?
-Is the city and our developer going to change their habit of not keeping the public informed on critical issues like this?
-What are residents going to do during events like Rita without a local hospital Mr. Mayor?
-etc. . .
2 Matthew Feinberg - Apr 12, 06:40 pm
Why is there still a sign on Sienna Pky saying the hospital is comming soon? Isn’t that a little misleading?
3 John Armstrong - Apr 12, 06:57 pm
Well, I don’t know this ‘Miss Leading’ person that Matthew is referring to but, must be the same spoke person for the 2700 apartments.
4 Chris Calvin, Ph.D. - Apr 12, 07:25 pm
Matthew,
How about the name on the blvd. next to the indefinitely postponed hospital, Sienna-Christus. Oh here’s some interesting news. The developer, through our developer controlled HOA board (known as the SPRAI) in coordination with our Sienna schools, is hosting a candidates meeting here in SP on April 24th. Apparently it has been reported that questions will be taken from the community beforehand and given to the candidates (no open mic questions?). A very controlled event. A group calling themselves “Concerned Parents of FB County” jointly headed up by an SJD developer employee is helping with this event. Does this group qualify as a legitimate grass-roots group or a subverted developer PAC?
I wonder who our developer is backing in this one? I better check those contribution reports. You know they backed the former incumbent (Mr. Bain) whose seat is now open. Some of the candidates have sworn-off this funding. So far they are Steve Dieu, Liz Mitton, Rodrigo Carreon. I wonder if Smelley and some of the others will take the pledge on this one.
It would be nice to see more candidates take this oath (no out of area special interest funding or vendor funding or gifts in kind). Of course if too many take this oath the political-industry may be in trouble. Honesty hurts, right?
5 maized&cornfused - Apr 12, 09:50 pm
The Concerned parents group is just that. Not all of the parents are from Sienna. There have been other “meet the canidate” events/opportunities posted on their site the SJD is not the first. I don’t know why it shouldn’t be considered a grass roots efforts is there a certain criteria?
Please give these parents some credit for trying to make the schools better. I don’t a see conspiracy and if there is one I am sure Bob will report about it-so will you on your website.
6 MoCityResident - Apr 13, 05:53 am
I have to throw my two cents in on this one. What the hell are so many residents in this area going to do without emergency care and for how long?
7 Chris Calvin, Ph.D. - Apr 13, 07:03 am
Well maized, the problem comes when the SJD employee who participates/leads this group presents before the school board incomplete information. For example, at a recent board meeting discussing the zoning and over-crowding issues at Baines MS, this SJD employee used developer generated data to emphasize their points and counter the districts data. During this presentation the SJD employee (PTO president and one of the leaders of this CPFB group) left out, misinformed, the real data on the zoning buster up to 2700 apartments being brought here, which her employer pushed on this community against popular consent. Not only was that information withheld (a conflict of interest) they didn’t mention that this area has more multi-family coming in the South Sienna area (further complicating the zoning picture).
All the facts should be presented as well as the relationships pointed out. I believe you maized are using the word “conspiracy” selectively for a purpose. I would suggest using a word like political-business relationships. The interplay of words does impact how a story is viewed and I think Bob, in this story on the hospital (and most of his work), is much more balanced than what we are used to in this community. If you view his intro video available here on the site you will see how he reduces and feels about the impact of ad pressure on reporting, which is a well documented fact in the research literature.
Related pieces and comments from FBNow.com:
Developer Pushes Ahead With Rosenberg Apartment Plans Despite Opposition
by Bob Dunn, Apr 1, 09:18 pm
A San Antonio developer has decided to move ahead with plans for a controversial low-income apartment complex in Rosenberg, although he says the odds are slim it will ever be completed.
Greg Thorse said in a recent interview he’ll proceed with a state application for tax credits for Providence Estates apartments, a 168-unit project planned for the southeast corner of Louise Street and Airport Drive.
The project drew strong opposition at a March 21 Rosenberg City Council meeting, with citizens and council members uniting against it at least in part because it’s aimed at people with limited incomes. The council voted 4-1 to adopt a resolution against Thorse’s plans.
After the meeting, Thorse said he would take a few days to decide whether to proceed in the face of such fierce opposition. Late last week, he said he decided the project was so far along, he may as well apply for the tax credits.
“To be honest, the chances are not really that good,” Thorse said, adding that he thinks he has only a 20% chance of winning the credits. And without them, “it’s a deal-breaker.”
Thorse said his chances were hurt when state Rep. Dora Olivo sent a “negative” letter to the agency with whom he’s making application.
In addition, Thorse said, he’s learned recently that engineering costs for the project site may come out so high that it won’t be feasible to build the apartments.
Last month, he said demographic information he’d obtained indicated Rosenberg was a prime city in which to build income-assisted apartments, because the occupation rate for existing units in Rosenberg is an unusually high 98.6%.
Rosenberg attorney Don Schwartz spoke out against the project at last month’s council meeting, saying residents believe it will drive down property values.
“We need to deter people from coming in and building apartments that might become a slum or ghetto. Why should Rosenberg be the gathering point for all of this?” Schwartz said, as a crowd at the meeting erupted into applause.
“I feel you’re condemning people before you even know them,” Councilor Antonio Martinez, who voted against the resolution, told Schwartz, “just because they might not be able to afford what you can afford.”
1 Bill Benton - Apr 2, 11:56 pm
I live in the area. We already have a low income apartment complex down the street from this site that is a nuisance, which is out of place and doesn’t fit into the neighborhood. Gunshots and other crime are a common occurrance. That is not to say this will be the case with this development, however, this development is not likely to complement the area. Also, there are many other areas around Rosenberg where property could be acquired cheaper and where this development might be an improvement, if done properly, and would be welcomed. This location is not one of them. Another point is that Rosenberg has a Housing Authority, which already helps place low income families, and Fort Bend Habitat for Humanity (a board which I used to be a member of) is constructing a mini Habitat Village where qualified residents could actually buy their own home, instead of renting at these apartments. This is just another reason why the city should quickly implement ordinances regulating the number of stories and number of units per acre of apartment developments. Lastly, let it be known that we in Rosenberg are not down on or against low income families. We just believe that this development would be out of place and would not blend with the adjacent properties and developments. You would have to drive by there and see the site to fully appreciate our reason for opposing the devopment.
2 consumerwise - Apr 3, 10:31 am
Good point Bill and much of the data supports ownership of the type of homes you advocate above decreases the negatives of apt. development. Interesting enough though high end or low end apartments have the same negative impact on taxing districts if you check the per head, per acre production of tax funds (its much less for apts).
Encouraging projects like the FBHH above is a better way to add value to the community. Maybe that developer should listen to the local citizens/market rather than picking up his data from some detached source.
More articles & comments on this from FBNow.com:
Rosenberg Council, Citizens Unite Against Planned Apartment Complex
by Bob Dunn, Mar 21, 11:47 pm
Rosenberg residents were out in force Tuesday night in a show of opposition to a proposed 168-unit apartment complex for people with modest incomes.
With a standing-room-only crowd in attendance, the City Council prepared to vote on a resolution recommended by City Manager Jack Hamlett opposing construction of the Providence Estates apartment complex on the southeast corner of Louise Street and Airport Drive.
“There appears to be a large group of residents here tonight concerned about a large-scale apartment complex being built near their homes,” noted Neal Rackleff, an attorney with the Houston office of Lock Liddell & Sapp who represents the project developer and spoke to the council.
“Almost everywhere you go, if you propose apartments that are income-restricted, nobody wants them in their neighborhoods,” Rackleff said. But the residents at Providence Estates would be “good, strong citizens, who have to be employed, and simply can’t afford a single-family home yet.”
Rackleff hinted that the city should be careful its actions aren’t construed as discriminatory or in violation of fair housing laws.
“That said, I’d like to make a plea for communication and understanding,” the attorney said. “We feel the market is strong, and that there are a lot of people living in substandard housing in this community.”
Rosenberg attorney Don Schwartz also addressed the council, saying he represents “the other people – the people living in the city of Rosenberg… who would like to retire in Rosenberg.”
Schwartz said in the “core” of Rosenberg, 37% of the housing is rented, and there have been four major apartment projects built in recent years. Instead of another apartment project, he said, the location would better serve the city if single-family houses were built on it.
“Bring in families that pay taxes and contribute to the community,” Schwartz said. “Everyone needs a house – I’m not saying they don’t – but if you look at the census, we’re not discriminating. We’re not seeing any new housing being built.”
Schwartz said the apartment project would drive property values down. He said he was circulating petitions that already have 300 signatures, and that the local school district and state Rep. Dora Olivo have expressed opposition to the apartments.
“We need to deter people from coming in and building apartments that might become a slum or ghetto. Why should Rosenberg be the gathering point for all of this?” Schwartz said, as the crowd erupted into applause.
Councilor Antonio Martinez asked Schwartz what he meant when he referred to representing “the people of Rosenberg,” adding, “aren’t you talking about everyone?”
“I feel you’re condemning people before you even know them,” Martinez said, “just because they might not be able to afford what you can afford.”
Mayor Joe Gurecky told Rackleff “this city has not ignored its responsibility to its lower-income citizens… We have extended ourselves to serve all of our citizens.”
In the end, the council voted 4-1 to adopt the resolution opposing the apartments. Martinez cast the lone dissenting vote. Councilors Waline Sebesta and James Hopkins weren’t present.
Gregory Thorse, the San Antonio developer planning the apartments, said after the meeting what he just witnessed was “the strongest opposition I’ve ever seen” to such a project.
Thorse said the resolution by itself won’t affect his ability to finance the apartments, but indicates that development could be unpleasant. He said he hasn’t decided whether to continue with his plans, adding that he’s invested about $50,000 into the project so far.
He said he’s developed about $100 million worth of properties across Texas, and Rosenberg represents a good opportunity. “It’s a great market,” he added. “Occupancy of affordable housing in Rosenberg is 98.6%”
Schwartz said after the meeting that Thorse has applied for $1.2 million in state tax credits, and is in competition for the credits. One of the criteria involves whether a project is viewed negatively by the surrounding public.
Therefore, Schwartz said, “it’s my job as a homeowner to give them as big a black eye as possible.”
1 jls - Mar 22, 10:43 am
Thank you Schwartz! At least some city councils in this area are getting the message. Not like the Mo-City decision (5-2 for apts) for Sienna Developers and their mayor last year, against popular opposition and a petition of over 1100+ homeowners which spun-off a developer SLAPP suit! At least that council/mayor represents its citizens.
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Here's the outcome of the Lakemont Apts. Hearing with Houston city officials:
http://www.nolakemontapts.org/News.htm
-Sounds like some of the same tactics were used by the developers in this one too.
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