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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for The Hudson at Pecan Creek (HTC #22432)
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RECOMMENDED ACTION
recommendation
WHEREAS, The Hudson at Pecan Creek (Development) received an award of 4% Housing Tax Credits (HTCs) in 2022 for the new construction of 285 multifamily units in Denton, Denton County;
WHEREAS, THF Pathway on Woodrow, LP (Development Owner or Owner) requests approval for a change in the unit mix, resulting in an increase in the number of one-bedroom units from 108 to 114 units and a decrease in the number of two-bedroom units from 114 to 108 units, while maintaining the total number of three- and four-bedroom units at 45 and 18, respectively;
WHEREAS, the Owner also requests to correct the Common Area from 76,646 square feet at Application to 59,883 square feet, which is a decrease of 16,763 square feet (21.87%);
WHEREAS, Board approval is required for a modification of the bedroom mix of units and for a reduction of 3% or more in the square footage of common areas as directed in Tex. Gov’t Code §2306.6712(d)(2) and (4) and 10 TAC §10.405(a)(4)(B) and (D), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested changes to the bedroom mix and common area do not materially alter the Development in a negative manner, would not have adversely affected the selection of the Application, and do not impact the viability of the transaction;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Application for The Hudson at Pecan Creek is approved as presented at this meeting, and the Executive Director and his designees are each authorized, directed, and empowered to take all necessary action to effectuate the Board’s determination.
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BACKGROUND
The Hudson at Pecan Creek received an award of 4% Housing Tax Credits in 2022 for the new construction of 285 multifamily units in Denton, Denton County. Construction of the Development is complete, and the cost certification documentation for the Development is currently under review by the Department. In a letter dated June 9, 2026, Lora Myrick, the representative for the Owner, requested approval to amend the unit mix by changing the total one-bedroom unit count from 108 to 114 units and the total two-bedroom count from 114 to 108 units. This change to the bedroom mix also results in an overall increase in the Net Rentable Area (NRA), going from 254,064 square feet to 255,614 square feet, a difference of 1,550 square feet or 0.61%. The Owner also requests to correct the Common Area from 76,646 square feet at Application to 59,883 square feet, which is a decrease of 16,763 square feet (21.87%).
The amendment request letter explains that during final review and reconciliation of the architect, general contractor, rent schedule, and cost certification materials, it was determined that the one-bedroom and two-bedroom counts were flipped in the constructed Development. Specifically, the change is reflected in Building C, where the one-bedroom count increased from 18 to 24 units and the two-bedroom count decreased from 39 to 33 units. The constructed bedroom mix is 114 one-bedroom units, 108 two-bedroom units, 45 three-bedroom units, and 18 four-bedroom units. The total number of residential units remains unchanged at 285 units, and the three-bedroom and four-bedroom counts were not affected. The 2022 Qualified Allocation Plan does not include the rule limiting the percentage of efficiency/one-bedroom units. At application, one-bedroom units represented approximately 38% of the total unit count, and in the as-built Development, one-bedroom units represent 40% of the total unit count.
The amendment request letter states that the common area figure is being corrected from 76,646 square feet to 59,883 square feet due to a calculation error in the architect tables at application. This correction does not result in a physical change to the Development.
The 0.61% increase to the NRA from 254,064 to 255,614 square feet is considered a Notification Item under 10 TAC §10.405(a)(2)(C), but is mentioned as part of the material amendment to the bedroom mix of units and reduction to the common area that require approval by the Board under Tex. Gov’t Code §2306.6712(d)(2) and (4) and 10 TAC §10.405(a)(4)(B) and (D).
While not addressed in the amendment request letter, the cost certification documentation also indicates that the area of the Development site increased from 11.30 acres at application to 11.892 acres at cost certification, resulting in a 4.98% decrease to the residential density, going from 25.221 units per acre to 23.966 units per acre. This change is slightly under the 5% threshold that requires Board approval.
Staff has determined that the proposed changes do not affect the Development in a negative manner and would not have impacted the selection of the Application or the HTC award. The final construction inspection for the Development has been closed. The final recommended HTC amount will be determined upon finalization of the cost certification review process.
Staff recommends approval of the requested material amendment to the Application.