Mission Housing Authority Granted $40 Million in Housing Tax Credits

MISSION- The Mission Housing Authority celebrated a major achievement by securing $40 million in Housing Tax Credits between 2023 and July 2024. The Texas Department of Housing and Community Affairs (TDHCA) awards tax credits annually in July.

 

This significant funding will construct two new mixed-income complexes, providing 204 modern, high-quality housing units for families and seniors. The tax credits were awarded through a highly competitive IRS program, marking a significant milestone for MHA and the City of Mission.

 

The redevelopment is spearheaded by the Mission Housing Development Corporation, an instrumentality of the Mission Housing Authority, with The Brownstone Group from Houston, Texas, serving as the developer and builder.

The first project, a 100-unit multi-family complex named Anacua Village Apartments, has a total project cost of $22,275,856. In 2023, this project received $2,000,000 in Low-Income Housing Tax Credits (LIHTC), translating to $20,000,000 over ten years.

 

“This is a monumental win for Mission,” declared Arnold Padilla, MHA Executive Director. “Securing these funds allows us to replace outdated housing with modern facilities catering to various income levels. It’s a testament to our commitment to providing our residents safe, affordable, and quality housing.”

 

The financing for the multi-family development is a joint effort. Hudson Housing Capital, the equity buyer of the tax credits, will contribute $16,398,360. Legacy Bank & Trust will provide a permanent loan of $4,700,000, while deferred developer fees make up $1,183,496. During the construction phase, the project will be supported by a construction loan from JP Morgan Chase totaling $15,400,000, supplemented by $2,000,000 from the Texas State Affordable Housing Corp. and $2,459,754 from Hudson Housing Capital.

 

Padilla explained that funding affordable housing is challenging because of limited funding options. Building housing for only low-income families generates very little income, making it difficult to borrow money.

 

“However, a mixed-income development provides a larger revenue source, allowing for the sustainability of larger operational costs,” Padilla said. With the U.S. Department of Housing and Urban Development (HUD) no longer providing subsidies, mixed-income development must keep affordable housing operating.

 

The second project, a 104-unit senior living complex, has an estimated total project cost of $22,512,279. Like the multi-family development, this senior housing project will be constructed by The Brownstone Group under the Mission Housing Development Corporation. The senior living facility also aims to secure $20,000,000 in LIHTC over ten years.

 

The new developments will rise on the site of the former Anacua Village, an 80-unit public housing project built in 1953 that had become uninhabitable due to severe deterioration. Anacua Village, vacant since December 2023, was demolished in April 2024 to make way for the new developments. “It had reached a level that we couldn’t do anything with it anymore. It was unsafe, uninhabitable,” Padilla emphasized.

 

HUD approved the multifamily development in June 2024. Construction has started, and Padilla said the plan is to complete the complex by October 2025.

 

“We received the 2024 LIHTC allocation for the senior site in July,” Padilla explained.

“We are currently working on the HUD submission and expect approval in January or February 2025.”

 

MHA aims to begin construction on the senior living site in March 2025 and complete it by October 2026.

 

The $40 million in Housing Tax Credits marks a new phase of growth and opportunity. It shows MHA’s commitment to creating a more inclusive future for all residents.

 

“This $44 million-dollar investment is more than just a redevelopment. It’s a commitment to our city’s future,” said Joe Louis Sanchez, MHA Chair. “The new housing will make Mission a better place to live, providing a safe and caring environment for families and seniors.”

 

Brownstone Development Group is the primary builder for the project. The group will hire local subcontractors and suppliers, contributing to the local economy and creating job opportunities. The project aims to enhance the area and support the community by providing various housing options and fostering a sense of community.

 

To kick off this exciting new project, a groundbreaking ceremony will take place on August 13, 2024, at the development site, located at 709 Highland Park Avenue, Mission, Texas.

 

“This development is a foundation for a stronger, more connected community. By creating a mixed-income environment, we provide quality housing and build a supportive network where people can thrive.” Padilla said.

 

“Statistics consistently show that mixed-income developments help residents find their way out of poverty and low-income situations. It’s about giving everyone a chance to succeed, and I am confident that this project will inspire a brighter future for all who call Mission home.”