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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Melody Grove II (HTC #25204)
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RECOMMENDED ACTION
recommendation
WHEREAS, Melody Grove II (Development) received an award of 9% Housing Tax Credits (HTCs) in 2025 for the reconstruction of 70 multifamily units for the general population in Waco, McLennan County;
WHEREAS, Melody Grove Development 2, LP (Development Owner or Owner) requests approval for a significant modification of the site plan, a reduction of 7.15% in the net rentable area, and a significant modification of the architectural design, including a reduction from 22 residential buildings to eight residential buildings;
WHEREAS, Board approval is required for a significant modification of the site plan, a reduction of 3% or more in the square footage of the units, and a significant modification of the architectural design of the Development as directed in Tex. Gov’t Code §2306.6712(d)(1), (4), and (5), and in 10 TAC §10.405(a)(4)(A), (D), and (E), and the Owner has complied with the amendment requirements therein;
WHEREAS, Board approval of this amendment does not constitute a waiver of any of the rules or statutes applicable to the 2025 HTC Application, including but not limited to the accessibility requirements stated in Chapter 1, Subchapter B and the visitability requirements in 10 TAC §11.101; and
WHEREAS, the requested changes do not negatively affect the Development, impact the viability of the transaction, impact the scoring of the Application, or impact the HTC award;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Housing Tax Credit Application for Melody Grove II 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 foregoing.
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BACKGROUND
Melody Grove II was approved for a 9% HTC award in 2025 for the reconstruction of 70 units, of which all are designated as low-income units, of multifamily housing for the general population in Waco, McLennan County. In a letter received July 28, 2026, Micah Strange, the representative for the Owner, requested approval for a material amendment to the Application for a significant modification of the site plan, a significant modification of the architectural design, a reduction of the net rentable area, and a slight increase in the Common Area.
The significant modifications of the site plan and architectural design include the reduction from 22 residential buildings to eight residential buildings, changes to the unit sizes resulting in a decrease to the net rentable area of 6,500 square feet or 7.15%, going from 90,866 square feet in the original Application to 84,366 square feet, but no changes to the set-asides or unit mix, and conversion of the accessible units from townhouse units to flats. This modification eliminates the need for chair lifts within the townhome units, improving accessibility, safety, and long-term maintenance considerations. The project will contain eight buildings, consisting of three primary building types. The revised unit sizes exceed the minimum sizes outlined in the selection criteria. Additionally, the changes to the architectural design of the Development include a slight increase to the Common Area, from 6,196 square feet at Application to 6,481 square feet.
The Owner indicated that the reason for the request to modify the site plan and architectural design was the result of continued design development, coordination with the local housing authority, and efforts to improve constructability, and cost efficiency. The Owner also stated that the continued volatility of construction costs and equity markets were not foreseen at the time of application. The Owner also indicated that these changes are necessary to address potential Fair Housing and Equal Opportunity concerns associated with the original design of this townhome style development. By eliminating stand-alone buildings, some of which were designated for accessible units, the revised plan integrates these units within the primary residential buildings. This approach promotes a more uniform distribution of accessible units throughout the Development, and avoids the appearance or risk of segregation of residents based on accessibility needs.
Staff reviewed the original Application and scoring documentation against this amendment request and has concluded that none of the changes would have affected the scoring or selection of the Application in the competitive round. The Owner indicated that these changes would allow the Development to move forward without changes to the costs projected in the original Application.
Staff recommends approval of the Application amendment as presented herein.