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Presentation, discussion, and possible action on a determination of eligibility related to Undesirable Site Features for Palms at Morris (#24124)
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RECOMMENDED ACTION
recommendation
WHEREAS, Palms at Morris is a 2024 9% competitive housing tax credit Application that requests $1,722,000 in housing tax credits for the new construction of 72 units in Corpus Christi, Nueces County;
WHEREAS, the 2024 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 Palms at Morris is located within two miles of three 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, as well as calculations of the acceptable separation distances that would be applicable for programs administered by the U.S. Department of Housing and Urban Affairs (HUD); and
WHEREAS, staff has reviewed the unique geographic circumstances of Corpus Christi, the letter from the City, and the minimum separation distances 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 of Palms at Morris is determined to be ineligible due to the Undesirable Site Feature related to refineries as established at 10 TAC §11.101(a)(2)(e)(ix).
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BACKGROUND
Palms at Morris is a 2024 9% competitive housing tax credit Application that requests $1,722,000 in housing tax credits for the new construction of 72 units in Corpus Christi, Nueces County. The 2024 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 Palms at Morris is located within two miles of three refineries that are capable of refining this volume of oil.
In their disclosure, which is attached to this item, the Applicant provided several items to support the mitigation of the Undesirable Site Features. These items include a letter from the Planning and Community Development Department of Corpus Christi that expresses support for the Development on behalf of the City, as evidenced by the Resolution of Support issued by City Council on February 13, 2024. 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.
The request also provides minimum acceptable separation distances that would be applicable if the Development were to be funded by a program within HUD’s jurisdiction. While these distances do not apply to the Department’s programs, they do provide valuable insight into how that agency would evaluate this situation. A letter is provided from Astex Environmental Services, which concludes that:
The Palms at Morris site is calculated to be beyond the Acceptable Separation Distance from the four (4) identified refinery tanks located within two miles of the site as calculated using the Acceptable Separation Distance Electronic Assessment algorithm. As a result, no further actions nor mitigation appear required.
Staff has reviewed the submitted documentation and is unable to conclusively determine that it constitutes acceptable mitigation. HUD’s regulations are informative, but do not directly apply to the Department’s programs, and it is not clear how support from the municipality mitigates the presence of an Undesirable Site Feature. Staff recommends that the Board find the site ineligible.