title
Presentation, discussion, and possible action on a request for an extension of the previously approved deadline to Place in Service for Bailey at Stassney
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RECOMMENDED ACTION
recommendation
WHEREAS, Bailey at Stassney was awarded 9% housing tax credits during the 2024 Competitive Housing Tax Credit cycle;
WHEREAS, the Development Owner executed a Carryover Allocation Agreement that included certifications stating each building receiving an allocation would be placed in service by December 31, 2026;
WHEREAS, the Board previously approved a request for force majeure treatment in 2025, that extended the deadline to be placed in service by six months to June 30, 2027, which is earlier than the allowable federal deadline of December 31, 2027; and
WHEREAS, the Applicant has requested that the Board approve extending the placed-in-service deadline an additional six months to the allowable federal deadline;
NOW, therefore, it is hereby
RESOLVED, that the request to treat the matter under the force majeure provisions of 10 TAC §11.6(5) is approved, and that the 2024 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2026 Program Calendar shall be applicable to the Development, with a deadline to place in service of December 31, 2027.
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BACKGROUND
|
Development |
Bailey at Stassney |
|
Target Population |
Supportive Housing |
|
HTC Award |
$2,000,000 |
|
City |
Austin |
|
Total Units |
104 |
|
HTC Units |
104 |
|
Initial Year of Award |
2024 |
|
Extension Requested |
Six months |
Bailey at Stassney is a 104-unit Supportive Housing Development located in Austin, Travis County. The development received an award of 9% Housing Tax Credits in 2024 and was approved for force majeure treatment in June 2025, but with an earlier deadline to place in service than is federally allowable. As a result, the current deadline to place in service is June 30, 2027.
The Developer has requested an additional six-month extension, which would create a new deadline to place in service of December 31, 2027. The justification provided for the request is that additional funds had to be sourced from the City of Austin’s Homeless Strategy Office, and that formal approval of those funds took longer than had initially been expected. The funds were approved by Austin City Council on December 11, 2025, and the Development is currently scheduled to close on January 20, 2026 (note that this date is updated from the initial date provided in the request, which was January 7, 2026). In order to maintain funding from the Housing Authority of the City of Austin, construction on the project must commence no later than January 31, 2026.
IMPACT OF BOARD DECISION
If the Board approves the request:
• The new 10% Test deadline will be July 1, 2026.
• The new placed-in-service deadline will be December 31, 2027.
If the Board denies the request:
• The current placed-in-service deadline of June 30, 2027, remains in place.
• The Development Owner may either meet the existing deadline, return the credits, or have the award terminated for failing to meet the deadline.
• Returned credits will first be reallocated within the original subregion in accordance with 10 TAC §11.6(2). If no pending applications are eligible within the subregion, the credits will be added to the statewide collapse for reallocation.
This request has no impact on any funding source other than the Low Income Housing Tax Credit program.
RECOMMENDATION
Staff recommends approval of the request to extend the previously approved deadline to Place in Service for Bailey at Stassney.