Council Approves $500,000 Fee Relief for Apartments

New Braunfels will reimburse impact fees for a planned 76-unit affordable apartment complex after federal tax credits fell short.

Updated on Nov. 10, 2026 in Apartments

Council Approves $500,000 Fee Relief for Apartments

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The New Braunfels City Council approved allocating $500,000 to reimburse impact fees for the Park at Dogwood, a planned 76-unit apartment complex at 1869 McQueeney Road in east New Braunfels. The reimbursement follows a reduction in expected federal tax credits that left the project with a $2 million budget shortfall.

Why it matters

The move aims to keep a subsidized rental project on track in New Braunfels as federal financing for affordable housing shrinks. Its outcome could shape how similar projects in the city are funded.

The $500,000 reimbursement covers roughly 38% of the project's $1.3 million in total impact fees. Federal tax credits were revised from $17.6 million to $15.7 million, leaving a gap that the city is attempting to close.

The players

New Braunfels City Council

The elected governing body of New Braunfels, Texas, which sets city policy and approves municipal spending.

New Braunfels Economic Development Corporation

The local economic development entity that funds the reimbursement and will repay the developer once certificates of occupancy are issued.

New Braunfels Utilities

The municipal utility provider that charges the impact fees being reimbursed for the project.

The details

The complex would rent to households earning between 30% and 60% of median area income, with proposed monthly rents ranging from $424 to $1,196. The total development cost is $22.3 million, and the New Braunfels Economic Development Corporation will repay the developer after certificates of occupancy are obtained for all units.

September: Developer requested a waiver of up to $500,000 in impact fees.
Tuesday: City Council approved the $500,000 impact fee reimbursement.

Financing Pressure

Revised FEMA floodplain maps reduced expected federal Low-Income Housing Tax Credit proceeds for this project from $17.6 million to $15.7 million. New Braunfels is now filling the gap locally, illustrating how federal tax-credit changes can push affordable projects onto municipal budgets.

For New Braunfels renters, the project would add 76 apartments priced between $424 and $1,196 per month for households earning 30% to 60% of area median income. Residents seeking lower-cost housing in the city may see more options if the reimbursement keeps the project moving forward.

The takeaway

Local gap funding can determine whether subsidized housing projects move forward when federal financing changes. Watching how the city handles similar requests will show how it prioritizes affordable rental supply.