You might be surprised to know that the small South Texas town of Alice is famous for being "The Birthplace of Tejano Music;" the birthplace of not one but two Nobel Prize winners; and the childhood home of Lois Chiles, a former actress and fashion model known namely as the "Bond girl" in the 1979 film Moonraker. And if that isn’t enough, Alice also is home to the world's largest concrete water tower.

Aside from these cultural bragging points, Alice locals are just as proud of two relatively new affordable housing developments.

"These developments (Fishpond at Alice and Millpond at Alice) have had a positive impact on our community by improving the quality and condition of housing in the area and helping revitalize properties that needed rehabilitation," said Mayor Cynthia Carrasco. "The improvements have contributed to a stronger sense of pride in the neighborhood and have provided residents with safer, better-maintained places to live. Overall, the investment has helped strengthen the community and support continued growth within our city."

FishPond at Alice, an elderly limitation tax credit development (development for those ages 55 and older), and MillPond at Alice, a rehabilitated development, both received 9% competitive housing tax credit awards in the last few years from TDHCA. They’re the product of hard work, and enjoyment, of David Fournier and FishPond Development LLC.

The developments did not come without challenges for Fournier, the principal at FishPond Development LLC, and his team. Neither was new construction and as a result both included their fair share of hurdles. The elderly limitation deal (FishPond) was built on the site of an old hospital, while the acquisition/rehab deal (MillPond) refurbished and renewed a decrepit, aged public housing development.  

"For FishPond Alice, the biggest challenge was the abatement and demolition of the structure in an infill location," Fournier said. "With MillPond, the challenge was working around existing tenants. We also encountered many issues which we did not budget for, including replacement of all sanitary sewer and replacement of a significant amount of termite damaged framing."

But what an investment for Alice, a town of 17,595 (2024 estimate) with a need for affordable housing just like any other community in Texas. FishPond received $1,159,432 in 9% credits through an initial 2021 award and a 2023 supplemental award. MillPond was a 2023 awardee receiving $1,017,100 in 9% credits. Over the 10-year equity period, the two awards meant a financial influx of more than $18.5 million dollars into the community.

FishPond is providing 69 units, 67 of which are considered affordable (80% or below of the Area Median Income), while MillPond is providing 80 units, all affordable and all covered through a Housing Assistance Program contract with the U.S. Department of Housing and Urban Development.

By its very nature, rural Texas faces a number of realities that make the addition of affordable housing difficult. Per a study from the Federal Home Loan Bank of Dallas, rural Texas has "lower median incomes, older housing stock, large aging populations and substandard infrastructure relative to their metropolitan counterparts." These factors – coupled with increasing costs for labor, materials, operating expenses, and even insurance as well as a lack of funding – all make putting a quality development on the ground something akin to running a gauntlet. And what might have looked more advantageous 10-15 years ago for a Texas affordable housing developer, now seems different.

"We started in the rural communities because, as new developers in 2008, there was less competition than the larger urban regions." Fournier explained. "We had a good connection with the city managers on our first deals because they loved our ideas. Once we established a relationship with these cities, we were able to show a track record and get references for support. Unfortunately, over the past three years, development in the rural areas has become more challenging as there is usually not any soft funds to bridge the funding gap. We will continue to look in these markets, but we will need to be more selective."

So, what's been the secret sauce for Fournier and his team in developing well-received, great-looking communities in rural Texas? Local buy-in it seems is huge.

"The City Manager, Mayor, Council and all City staff have been incredibly supportive and helpful on both developments," Fournier said. "The City was grateful that we removed a 20-year eyesore with the old hospital which had been a haven for homeless persons and for which the City had no funds to address. Guadalupe Haciendas was also another eyesore, and the city was thrilled for the rehab. In addition, the regional HUD office was very supportive as the property was at risk of losing its subsidy because of failing REAC scores."

The net result means quality affordable housing for people who need it and a grateful community who appreciate programs like the housing tax credit program.

As Mayor Carrasco described, "When communities have adequate affordable housing options, it supports economic stability, workforce retention, and overall quality of life for residents."

If you are interested in making MillPond at Alice your home, please contact the management office at 361-664-1780 or email to: MillpondAlice@Assetliving.com. If you are interested in living at FishPond at Alice, please call 361-227-3549 or email: FishPondAlice@AssetLiving.com. If you would like to search for affordable housing in another area, please visit TDHCA's Help for Texans at https://www.tdhca.texas.gov/help-for-texans and use our Vacancy Clearinghouse to search for properties around the state.