Last week, Cleveland developer NRP Group received the go-ahead from the Historic and Design Review Commission on its planned 323-unit, mixed-income apartment complex on San Pedro Creek, which it's calling Acero.
The $56 million complex, 419 W. Cevallos St., would rest on nine acres on one of the most southern stretches of the San Pedro Creek project—in the unplanned and unfunded third phase.
NRP Group is partnering with the San Antonio Housing Trust Public Facility Corp. (PFC), a nonprofit run by five City Council members, on the project.
Under state law, the San Antonio Housing Trust PFC's involvement means the partnership will receive a full property tax exemption for the term of the lease, which is 75 years.
In exchange, NRP Group must offer half the units to households making 80 percent of the area median income (AMI), which is $53,440 for a family of four in the greater San Antonio area, according to the U.S. Department of Housing and Urban Development (HUD). The other half would be market-rate priced.
The deal between NRP Group and the PFC will also result in 10 percent of the units being reserved for households making 60 percent AMI, which is $40,800 for a family of four in this region, according to HUD.
The households' rents would also be restricted to 30 percent of their income, although NRP Group would have the discretion to raise that figure to 35 percent.
The complex would be composed of one four-story building and four three-story buildings with fiber cement and brick facades.
It's unclear what other entities—or, equity partners—are teaming up with NRP Group and the PFC on this project. It's also unknown how much profit NRP Group expects to yield on the tax-exempt project. The company has previously declined to answer these questions.
For more on how the financing works on this project, read "Developer NRP Group closer to tax exemption deal on San Pedro Creek apartments."