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Presentation, discussion, and possible action on Resolution No. 26-015 on the reassignment of the 2023 Traditional Carryforward Designation for Airport Commerce Multifamily Apartments (#23612) in the amount of $29,000,000
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RECOMMENDED ACTION
recommendation
WHEREAS, the Board adopted an inducement resolution for Airport Commerce Multifamily at the Board meeting of June 15, 2023;
WHEREAS, the Department received an allocation of volume cap through a Traditional Carryforward Designation in the amount of $29,000,000 on January 5, 2024, for Airport Commerce Multifamily Apartments, a proposed new construction development;
WHEREAS, the Department has received notice that the project will not be moving forward due to issues beyond the Developer’s control; and
WHEREAS, the Department desires to reassign the Traditional Carryforward allocation in the amount of $29,000,000 to one or more multifamily developments;
NOW, therefore, it is hereby
RESOLVED, that Board approval of the Department’s intent to reassign the Traditional Carryforward as allowed under Chapter 1372.074 of the Texas Government Code is hereby granted.
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BACKGROUND
General Information: The Department previously received an allocation of volume cap through a carryforward designation (Docket No. 23CF-016) in the amount of $29,000,000 on January 5, 2024. This allocation was project-specific and tied to Airport Commerce Multifamily Apartments, a proposed new construction development to be located in Austin. Due to factors beyond the developer’s control, the project will not be moving forward.
Section 1372.074 of the Texas Government Code, allows for the reassignment of all or part of the carryforward designation to a new project provided the issuer provides notice of the withdrawal, a written request signed by an authorized representative of the issuer, the issuing board resolution authorizing the carryforward designation reassignment with an original signature by an officer of the issuer, applicable fees, and an opinion of the legal counsel stating that the carryforward designation reassignment does not conflict with Section 146 Internal Revenue Code of 1986.
The Department intends to attribute the $29,000,000 towards a different project in the Department’s pipeline prior to the volume cap expiration of December 31, 2026.