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Presentation, discussion, and possible action on a request for an extension of the previously approved deadline to Place in Service for Commons at St. Anthony’s
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RECOMMENDED ACTION
recommendation
WHEREAS, the above listed development was awarded 9% housing tax credits during the 2020 competitive Application round;
WHEREAS, staff executed a Carryover Allocation Agreement with the Development Owner, which included certifications from the Development Owner that each building for which the allocation was made would be placed in service by December 31, 2022;
WHEREAS, the Board previously approved a request for force majeure treatment in 2021, that extended the deadline to be placed in service to December 31, 2023;
WHEREAS, the Board previously approved a request for force majeure treatment in 2022, that extended the deadline to be placed in service to December 31, 2024;
WHEREAS, the Board previously approved a request for force majeure treatment in 2024, that extended the deadline to be placed in service by six months to June 30, 2025, which is considerably earlier than the allowable federal deadline of December 31, 2026;
WHEREAS, in May 2025, the Board extended that previously approved deadline to December 31, 2025, which is still earlier than the allowable federal deadline of December 31, 2026; and
WHEREAS, the Applicant has requested that the Board grant an approval to allow for an additional 90 days;
NOW, therefore, it is hereby
RESOLVED, that the previously approved deadline to place in service for Commons at St. Anthony’s is approved to now be March 31, 2026.
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BACKGROUND
Commons at St. Anthony’s is a 124-unit Adaptive Reuse Development that is nearing completion in Amarillo. The project proposes the conversion of a vacant hospital in Amarillo into a Development for seniors. The project was awarded Housing Tax Credits in 2020. For an award of 9% housing tax credit, the Applicant has until the end of the second calendar year following the award to complete construction and place the buildings in service, otherwise, the project is not eligible to claim its Tax Credits. The initial deadline for this project was December 31, 2022, but the Board approved requests for the Developer to return the credits have them reallocated in 2021, 2022, and 2024, which effectively resets the federal deadline to place in service (this process is established in the QAP and is colloquially referred to as “force majeure treatment”). For the 2024 approval, the Board elected to impose a shorter deadline than what is federally allowable, and only granted the project an additional six months, which expires on June 30, 2025. In May 2025, that deadline was extended by the Board to December 31, 2025.
This Development has experienced significant difficulties since its inception. Increased costs created a large gap and obtaining additional funds delayed construction until July 2022. After commencing construction, the project encountered further delays due to the complexity of working within a large historic building. This included lengthy mold remediation, asbestos removal, structural issues, and roof repairs. The project has also experienced delays throughout due to difficulties maintaining a large, qualified workforce for an unusual project in a small labor market. One such issue includes the recent sudden departure of the project’s original electrical subcontractor. Complications with this departure delayed the delivery of critical electrical components extended the construction timeline into 2025. Throughout the beginning of 2025, the project experienced a multitude of additional delays, including continued labor shortages, theft and vandalism at the Development Site, unexpected local requirements, and delivery delays of key items. Because of these delays, the Owner is requesting a 90-day extension of the placed-in-service date, to March 31, 2026.
Because the Development is finalizing construction completion, staff recommends the Board approve the request to approve a placed-in-service deadline of March 31, 2026. Approval of this request does not change any federal or state deadlines for the Development’s other funding; however, if the Board approves this request, the Department will work with the Owner to administratively extend both the NHTF Development Period and the submission deadline of the final draw of loan funds to February 29, 2026.