Denton could add 252 income-restricted apartments at Waterford at Spencer Oaks, but the proposal comes with a sizable tax break and a wrinkle in what “affordable” actually means. A city-backed housing corporation is set to review the application Tuesday, putting the project at the front edge of Denton’s newest affordable-housing pipeline.
April Housing is seeking a 100% property tax exemption for the expansion through the Denton City Public Facility Corp., according to the City of Denton staff report. The corporation began accepting applications in December 2025, and this is its first full application for an income-restricted housing development.
165 Apartments Would Bring Lower Rents
Of the 252 proposed apartments, 165 would be reserved for households earning 50% or less of the Dallas-area median income, according to Community Impact. The rent schedule ranges from $535 per month for a one-bedroom apartment at 30% AMI to $1,329 for a three-bedroom apartment at 50% AMI, while a three-bedroom unit at 80% AMI would rent for $1,634.
That distinction matters because the remaining 87 units, while income-restricted, may not offer a meaningful discount for Denton renters. City housing officials have said the federal housing formula uses income data from the broader Dallas area, where higher-income counties can push 80% AMI rents close to Denton’s market rate.
The Tax Break Would Cost Local Taxing Entities
City staff estimates the exemption would save April Housing about $527,451 annually in property taxes, while the reduced rents would represent roughly $205,700 in yearly savings for tenants, according to the city report. Denton ISD would forgo an estimated $320,170, the city would give up about $157,955, and Denton County would lose roughly $49,326 in exempt revenue…