Victoria is getting a new affordable-housing apartment complex, one geared to residents 55 and up.

FishPond at Victoria is the first complex in Victoria to receive state affordable housing project tax credits in 15 years, and it comes thanks to changes in scoring guidelines on applications. It was approved for a competitive low-income housing credit by the Texas Department of Housing and Community Affairs on July 28.

The senior apartment complex was one of five developments endorsed by the city for a 9% tax credit, which provides 70% of a developments’ equity, and was the only project to be approved. However, it might be an extended period before another development like FishPond can get such a tax credit.

“Affordable housing developments like this one help to ensure that all our residents have a dignified place to live,” Mayor Jeff Bauknight said. “We are committed to helping developers leverage state and federal resources, so that we can encourage affordable housing development in a fiscally responsible manner.”

FishPond at Victoria is a 75-unit apartment complex meant for seniors near Airline Road and Navarro Street, said Mike Etienne, Victoria assistant city manager. The development is designed to serve low-income senior residents 55 and older earning less than 60% of the Victoria area’s median income.

Income includes Social Security and other benefits, with units being priced according to residents’ income, a city news release said.

Affordable housing is a part of the city’s long-term plans, and that has been made clear by the residents that this is a priority, particularly for seniors, Etienne said.

The tax credit is expected to pay 70% of development costs, which is projected to cost $13 million to $15 million, he said.

“We appreciate all the guidance and assistance the city officials provided during the application process and look forward to working closely with the city to create an affordable community for seniors in and around Victoria,” David Fournier, principal of FishPond Development, said in a news release.

This development was only possible because TDHCA changed its application scoring system, which original gave cities with populations greater than 100,000 and were within 2 miles of a shopping complex priority, Etienne said.

With Victoria in the same TDHCA region as Corpus Christi, the city has been unable to secure the 9% tax credit for a development since 2007.

“The application criteria were built on an assumption that affordable housing shortages are more of a problem in larger and more densely populated cities, so those were the cities that were getting all the projects,” Victoria City Manager Jesús Garza said. “We know that the housing crisis is affecting Victoria, too, so we worked with state officials to make sure developers that want to build here would have a fair chance of getting funded.”

In 2020, Garza and Etienne met with TDHCA leadership to advocate changing how applications are scored, so the city could be more competitive, and the organization changed the guideline from 2 miles to 4 miles from a shopping center complex in 2021.

However, TDHCA is expected to revert back to the 2 mile distance next year, Etienne said, making future affordable housing project developments in Victoria applying for the tax credit less likely to be approved.

In recent years, housing prices have continued to rise in the Victoria County area, while median income has stayed flat or fallen, Etienne said.

“There is still a great need in less dense areas like Victoria,” he said.

Etienne expects some of the other four projects to return for next year’s tax credit application cycle, but it’s all dependent on whether or not what TDHCA decides what the scoring guidelines will be next year and if a project can be competitive.

“The new complex is expected to generate about $155,000 in annual property taxes for the city and other taxing entities, along with 125 temporary construction and tradesman jobs,” he said. “We’re excited for this new development that will enhance livability for our seniors and benefit our city economically.”

No local funding is currently included as a source, and the Victoria Housing Finance Corporation did not issue any bonds to finance the project, according to a news release.

The city and FishPond will host a community meeting in the fall to discuss the project with residents, the release said. Construction is scheduled in early 2023. Leasing is expected to begin in fall 2024. The project’s timeline is subject to change amid ongoing inflation and supply chain issues.