Capital One Invests $16M in Houston Housing Authority Development

Capital One is investing $16 million in a mixed-income senior housing development in exchange for low-income housing tax credits.

It will fund the Campanile on Minimax, a 117-unit multifamily project where 80 percent of units will be affordable, according to a news release from Capital One. The developer is an entity tied to the Houston Housing Authority.

The project, at 2727 Minimax Drive, between Lazybrook/Timbergrove and the Northwest Freeway, received a 9 percent low income housing tax credit in 2021. Housing developers can sell those 10-year tax credits to fund their projects, and the buyer receives them once the project is completed.

Capital One also provided a $10.9 million HUD loan for the project’s construction and permanent financing.

The Houston Housing Authority last year approved Campanile on Minimax to use a federally funded voucher system. The project was planned as 177 units when HHA approved the vouchers last March.

The apartments will be reserved for residents 55 and older, and 93 units will be reserved for households earning 30, 50 or 60 percent of the area median income. Of those, six units will be available to residents of any age who are unhoused, veterans or disabled. Twenty-four units will be available at market rate.

This is Capital One’s second investment in Houston’s affordable housing sector this year, following a similar deal for New Hope Housing Ennis. The bank invested $17 million in exchange for the low-income housing tax credit, plus a $16 million construction loan for that 102-unit senior living development, at 1887 Ennis Street.

Houston City Council recently approved low income housing tax credits to developers of 17 affordable housing projects. Six of them were senior living projects. Developers including National Church Residences and the William A. Lawson Institute for Peace & Prosperity received tax credits to renovate or redevelop existing properties. Developers of new construction receiving tax credits include Brinshore Development and Itex Development.