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City Council Meeting Minutes June 1, 2021 <br />A motion was made by Deputy Mayor Pro Tem Scott, seconded by Mayor Pro <br />Tem Derrick, to approve Ordinance 2021-43, on the first of two readings. <br />Deputy Mayor Pro Tem Scott expressed concern with not paying property <br />taxes. Mr. Holland stated this is a partnership with the Housing Authority. <br />This is not government housing for low income population but housing for <br />workforce individuals who make $49,000 $70,000 <br />yearly. This is this project is for the missing middle between low income and <br />the upper end. <br />Council's concerns included: <br />No property taxes, due to the San Marcos Housing Authority being the <br />property owner. This means that tenants will be using streets, the library, <br />parks, and other City resources with no money going into the General Fund. <br />Mayor Hughson emphasized that this is a rezoning case and the agreement <br />between the applicant and the Housing Authority is not under our authority. <br />She pointed out that the agreement with the Housing Authority could have <br />taken place after the zoning case was closed in which case we might not even <br />know about it. <br />Council Member Baker would like clarification using individual income <br />assessments and if this is a rent by the room project. Mr. Holland stated this is <br />not a rent by the bedroom project and tax credit units are income and rent <br />restrictive. The rent is dictated by the number of units and this project is <br />income restrictive with 25% of units earning no more than 60% of the area <br />median income (AMI) and 25% of the units earning no more than 70% of <br />AMI and 50% can be market with no income restrictions. Using the tax credit <br />project two people <br />can combine incomes and can qualify. <br />Upon a question about the amount of taxes the city would not be receiving on <br />this project, Mr. Holland responded that it would be about $331,000 per year. <br />Mayor Pro Tem Derrick would like the projections of the property taxes for <br />the CD 4 and CD 5 projects at the next Council meeting. <br />The motion carried by the following vote: <br />For: 5 - Mayor Pro Tem Derrick, Mayor Hughson, Deputy Mayor Pro Tem Scott, Council <br />Member Garza and Council Member Gleason <br />Against: 2 - Council Member Baker and Council Member Gonzales <br />City of San Marcos Page 11 <br />