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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for The Arbor at Centerbrook (HTC #14285)
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RECOMMENDED ACTION
recommendation
WHEREAS, The Arbor at Centerbrook (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2014 for the construction of 80 multifamily units in the City of Live Oak, Bexar County;
WHEREAS, APC Live Oak I, Ltd. (the Development Owner or Owner) requests approval to remove a portion of land from the encumbrances of the Land Use Restriction Agreement (LURA);
WHEREAS, the proposed change includes decreasing the size of the site from 13.13 acres to 9.72 acres, which results in a 35.08% increase in residential density, going from 6.093 units per acre to 8.23 units per acre;
WHEREAS, Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does not materially alter the Development in a negative manner, affect the HTC recommendation, and would not have adversely affected the selection of the Application in the Application Round;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Application for The Arbor at Centerbrook 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 Arbor at Centerbrook received a 9% HTC award in 2014 to construct 80 units in the City of Live Oak, Bexar County. In a letter dated February 26, 2024, Howard D. Cohen, the representative for the Development Owner, requested approval for a material amendment to decrease the acreage of the Development site, which will result in the release of 3.41 acres of land from the encumbrances of the LURA dated as of May 10, 2016. This will increase the residential density of the Development by 35.08%, going from 6.093 units per acre to 8.23 units per acre.
The land that is subject to the terms of the LURA consists of approximately 13.13 acres. All of the buildings, parking areas, driveways, and all other improvements utilized in connection with the operation of the Development are located on approximately 9.72 acres of the Development site. The remaining approximately 3.41 acres of land encumbered by the LURA is vacant. The City of Universal City (the City) has requested that the Development Owner sell and convey to the City the 3.41-acre vacant portion of the land. Although the vacant land is adjacent to the developed land, the vacant land does not contain any improvements, has not been materially landscaped or cleared of vegetation and debris, and is not used by the tenants of the Development in any way. The Owner confirmed that, while the density increased due to the acreage of the Development site shrinking, the current Development in operation will not be impacted. The Owner’s representative explained that the proposed changes are necessary to accommodate the prospective acquisition of the vacant land by the City. These changes were unforeseen at the time of Application.
Staff has reviewed the original application and scoring documentation against this amendment request and has concluded that none of the changes would have resulted in selection or threshold criteria changes that would have affected the selection of the Application in the competitive round. In addition, had the land acquisition costs included at Cost Certification been prorated based on the remaining acreage for the Development, the credit award would not have been impacted.
Staff recommends approval of the requested material amendment to the Application, and if approved, the LURA will be amended accordingly to release the vacant land.