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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for The Ashbourne (HTC #25073)
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RECOMMENDED ACTION
recommendation
WHEREAS, The Ashbourne (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2025 for the new construction of 72 multifamily units for the general population in Houston, Harris County;
WHEREAS, 9677 South Kirkwood Drive Propco, L.P. (the Applicant) proposed at pre-application and in the Application to provide a High-Quality Pre-Kindergarten program and educational space at the Development under §11.6(3)(C)(v) of the 2025 Qualified Allocation Plan, which made the Development eligible for a priority award;
WHEREAS, the Applicant is now requesting approval for a material amendment to the Application to replace the High-Quality Pre-Kindergarten program commitment with an alternative service model developed in collaboration with Alief Independent School District (Alief ISD);
WHEREAS, Board approval is required for a modification considered material by staff as directed in Tex. Gov’t Code §2306.6712(d)(7) and 10 TAC §10.405(a)(4)(I), and the Applicant has complied with the amendment requirements therein; and
WHEREAS, the requested change to replace the High-Quality Pre-Kindergarten program will materially affect the Development;
NOW, therefore, it is hereby
RESOLVED, that the requested amendment to replace the High-Quality Pre-Kindergarten program commitment for The Ashbourne is denied as presented at this meeting.
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BACKGROUND
The Ashbourne was approved for a 9% HTC award in 2025 for the construction of 72 units, all of which are designated as low-income units, of multifamily housing for the general population in Houston, Harris County. At the meeting of April 9, 2026, the Board approved a request to remove the requirement for a Historically Underutilized Business (HUB) in the Development. In a letter dated March 23, 2026, Kimberly Loesche, representative of the Applicant, has requested approval for another material amendment to the Application.
Under §11.6(3)(C)(v) of the 2025 Qualified Allocation Plan, the highest scoring Development that elects to provide a High-Quality Pre-Kindergarten program and associated educational space at the Development site would be selected for an award. Also, if a High-Quality Pre-Kindergarten would be provided, the election must have been made at pre-application and could not change at full Application. This Development met such criteria, and therefore, was eligible for the priority award for having the High-Quality Pre-Kindergarten program.
The Applicant states that they made the commitment to provide a High-Quality Pre-Kindergarten program and educational space on the Development site in good faith, based on direct engagement with Alief ISD and the need for the change was not foreseeable at Application. The Applicant has now requested approval to replace the commitment to provide an on-site High-Quality Pre-Kindergarten program with an alternative service model that the Applicant developed in collaboration with Alief ISD. The alternative service model proposes that Pre-Kindergarten age residents, at the resident’s discretion, enroll at Martinez Early Learning Center, an Alief AISD-serviced campus located approximately 1.5 miles from the Development. Additionally, the Applicant commits to construct the on-site stand-alone facility contemplated for the High-Quality Pre-Kindergarten. However, the facility would be utilized for Alief ISD to provide after-school services for elementary, middle school, and high school aged children. The Applicant would enter into an agreement with Alief ISD as an educational provider.
The Applicant indicated that this request is the result of an unforeseen circumstance in which the educational provider, Alief ISD, changed their position regarding the High-Quality Pre-Kindergarten program and does not wish to operate the program at the Development site. Alief ISD explained to the Applicant that its nearby Pre-K campus, Martinez Early Learning Center, is currently experiencing declining enrollment with current available capacity and budget constraints that make it unable and unwilling to provide a High-Quality Pre-Kindergarten program on-site. Instead the Applicant has stated that Alief ISD’s preference, is to have Pre-K residents attend Martinez Early Learning Center rather than establish a new, duplicative and competitive program on-site. Alief ISD affirmed its willingness to provide after-school services at the Development.
The Applicant indicated that they performed an extensive search for an alternative educational provider, which includes charter and private schools, but despite these efforts, no viable replacement educational provider was identified. The Applicant also identified the Houston ISD and ISDs in Harris County as potential outreach targets; however, because the Development is located within Alief ISD’s attendance boundaries, partnering with another public school district for on-site Pre-K services is not operationally or jurisdictionally feasible unless the attendance zones are modified or a charter agreement is entered into with the currently operating independent school district.
Based on the final list of 9% HTC awards for 2025, the proposed change would not have affected the selection of the Application in the competitive round, but a series of circumstances and events in the subject subregion occurred in the cycle, which include: fewer full applications than usual, two Applications that would have received an award chose to withdraw, and a prior year development in the region returned its credits, which resulted in this Development and all other remaining eligible applications in the subregion receiving an award even without the High-Quality Pre-Kindergarten program. Therefore, it is unclear what impact this Development had in the round for reflecting the High-Quality Pre-Kindergarten since pre-application. However, it is plausible that some applicants may have chosen not to submit a full application based on the Applicant reflecting a High-Quality Pre-Kindergarten in its application and thus being eligible for a priority award.
Staff recommends denial of the amendment to the Application to replace the High-Quality Pre-Kindergarten election with an alternative service model.