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Presentation, discussion, and possible action on extensions of the development periods for Sierra Vista and Eastern Oaks
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RECOMMENDED ACTION
recommendation
WHEREAS, Riverside Senior Investments, LP (Owner) is a prior Neighborhood Stabilization Program (NSP) recipient and Owner of Sierra Vista Senior Villas that provides 272 affordable Units in Fort Worth, Tarrant County;
WHEREAS, the Department and Owner executed a contract for these funds on February 15, 2019, and that contract includes a specific development period;
WHEREAS, in accordance with and pursuant to 10 TAC §11.207 and 10 TAC §13.1(c), on September 1, 2022 the Board approved a waiver of 10 TAC §13.11(m) (re-codified and currently cited as 10 TAC §13.11(c)(13)) which would terminate the Loan if construction was not completed within the four (4) year deadline to allow construction completion past the four (4) year deadline to July 1, 2023;
WHEREAS, in accordance with and pursuant to 10 TAC §11.207 and 10 TAC §13.1(c), on September 1, 2022 the Board approved a waiver of 10 TAC §13.11(p)(11) (re-codified and then cited as 10 TAC §13.11(c)(14)(L), and now cited as 10 TAC §13.11(c)(14)(K)) and further granted the Owner an extension of the time period to request the final draw of construction loan funds past twenty-four (24) months to January 31, 2023 and to extend the time for the Department to disburse the final draw to July 1, 2023;
WHERAS, in accordance with and pursuant to 10 TAC §13.13, on September 1, 2022 the Board further approved an additional extension of the Development Period to forty-two (42) months and an extension of the time period for the Department to issue the Closed Final Development Inspection Letter past thirty-six (36) months to December 31, 2022;
WHEREAS, Owner did not meet those deadlines; and
WHEREAS, Sierra Vista Senior Villas has completed construction and has been occupied, but the deadline to request the final draw of construction loan funds and the Development Period both have expired, and the final draw cannot be issued until both periods are extended, which requires Board approval;
NOW, therefore, it is hereby
RESOLVED, that the deadline for the Owner to request the final draw of construction loan funds be extended to July 15, 2024, and the Development Period be extended till September 16, 2024, with the first loan payment due on October 1, 2024, and for the loan to terminate within six months of the senior lender.
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BACKGROUND
Sierra Vista Senior Villas previously received Multifamily Direct Loan Funds (MFDL) from the Department in the forms of NSP and TCAP-RF. The contract and loan documents for these funds include a specific development period by which project completion, as defined in the contract, must be achieved. Sierra Vista Senior Villas has substantially completed construction and is currently occupied.
Once a development period has expired, Department staff can no longer issue disbursements of funding unless and until that that period and other deadlines in the contract and the loan documents are extended. With this item, staff is requesting from the Board to be able to extend various deadlines as reflected above, so that the final disbursement of funding can be issued. This matter is an administrative issue that is necessary for the funding to be eligible to be disbursed, and this approval will allow repayments on the loan to begin. All other requirements related to the final disbursement of funds still apply.