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Presentation, discussion, and possible action on a determination of eligibility related to Undesirable Site Features for Sea Gulf Villas (#26061)
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RECOMMENDED ACTION
recommendation
WHEREAS, Sea Gulf Villas is a 2026 9% competitive housing tax credit Application that requests $1,635,624 in housing tax credits for the acquisition and rehabilitation of 61 units in Corpus Christi, Nueces County;
WHEREAS, the 2026 Qualified Allocation Plan (QAP) establishes Undesirable Site Features that generally render an Application ineligible unless acceptable mitigation as determined by staff or the Board is undertaken, and these features include being located within two miles of refineries capable of refining more than 100,000 barrels of oil daily;
WHEREAS, the proposed Development Site for Sea Gulf Villas is located within two miles of two refineries that are capable of refining more than 100,000 barrels of oil daily;
WHEREAS, in the disclosure of this feature, the Applicant provided correspondence from the City of Corpus Christi expressing its support for the proposed Development and explaining that the unique geography of the city places many of its prominent areas within two miles of refineries; and
WHEREAS, staff has reviewed the unique geographic circumstances of Corpus Christi and the letter from the City, and has determined that these items may constitute acceptable mitigation of the Undesirable Site Feature.
NOW, therefore, it is hereby
RESOLVED, that the proposed Development Site for Sea Gulf Villas is determined to be eligible.
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BACKGROUND
Sea Gulf Villas is a 2026 9% competitive housing tax credit Application that requests $1,635,624 in housing tax credits for the acquisition and rehabilitation of 61 units in Corpus Christi, Nueces County. The 2026 QAP establishes certain Undesirable Site Features that generally render an Application ineligible if acceptable mitigation is not provided. Acceptable mitigation is not explicitly defined, and is solely determined by staff or the Board. The rule also establishes that, in the event that staff cannot reasonably conclude whether a feature is considered undesirable, it may defer to the Board for decision. Undesirable Site Features include Development Sites that are located within two miles of refineries capable of refining more than 100,000 barrels of oil daily. The proposed Development Site for Sea Gulf Villas is located within two miles of two refineries that are capable of refining this volume of oil.
The Applicant provided a letter from the City of Corpus Christi in the Application. This letter expresses support for the Development on behalf of the City, citing a Resolution of Support approved by City Council on February 17, 2026. The letter further explains that many prominent areas of Corpus Christi are located within two miles of a refinery, including the downtown urban core, City Hall, and existing residential developments, and asks that the Department find the site eligible.
Staff has reviewed the submitted documentation and has recommends that the Board determine that the unique geography and city layout of Corpus Christi as well as the information provided by the City in its letter of support constitute acceptable mitigation, which would result in the Application being eligible to compete in the 2026 9% Housing Tax Credit competitive round. This approval would not guarantee that an award of funding will be made.