Morgan Group Trades Affordable Housing Mandate for Tax Exemptions

The San Antonio Housing Trust Public Facilities Corporation (PFC) struck a partnership agreement with Houston-based developer The Morgan Group last week. The San Antonio Business Journal reported the agreement exempts the developer from some property taxes ($756,000) in exchange for increasing the number of affordable units in the properties and collaboration with tenant-focused city services.

Both projects — Caroline at Salado Creek and Caroline at Sonterra — are expected to cost $72 million to build. The Salado Creek project is coming to the Brooks area, just east of the planned San Antonio Arboretum. The Sonterra development is being planned for a spot near the intersection of East Sonterra Boulevard and Loop 281.

Of the 359 units planned for Salado Creek, half of those are earmarked as affordable. One hundred twenty-six units will be restricted to 80% of the area median income, 37 units will be 60% AMI and 18 units will be 50% AMI.

That same mixture applies to the 301 units slated for Sonterra. Morgan’s Caroline at Longhorn Quarry recently started accepting tenants (see photo).