title
Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application and waiver of 10 TAC §11.9(e)(6)(A)(i) for Waverly North (HTC #25158)
end
RECOMMENDED ACTION
recommendation
WHEREAS, Waverly North (Development) received an award of 9% Housing Tax Credits (HTCs) in 2025 and was conditionally approved for a Multifamily Direct Loan in 2026 for the adaptive re-use and new construction of 76 multifamily units in Austin, Travis County;
WHEREAS, to address concerns raised by neighborhood and the State Historic Preservation Office and the National Park Service, Waverly North, LLC (the Applicant) requests approval for a significant modification of the architectural design, which will result in changes to the unit mix among other changes;
WHEREAS, Board approval is required for a significant modification of the site plan, a modification of the bedroom mix of units, and a significant modification of the architectural design of the Development, as directed in Tex. Gov’t Code §2306.6712(d)(1), (2), and (5), and in 10 TAC §10.405(a)(4)(A), (B), and (E), and the Applicant has complied with the amendment requirements therein;
WHEREAS, the Application for the Development was awarded five points for Historic Preservation, but because the proposed redesign will result in 47.4% (36) of the total units in the historic buildings, which is lower than the 55% (42 units) required for points under 10 TAC §11.9(e)(6)(A)(i), the Applicant requests a waiver of this requirement; 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 funding award;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Application and waiver of 10 TAC §11.9(e)(6)(A)(i) for Waverly North are 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.
end
BACKGROUND
Waverly North was approved for a 9% HTC award in 2025 for the adaptive re-use and construction of 76 low-income housing units in Austin, Travis County, and was also approved for a Multifamily Direct Loan at the Board meeting on July 23, 2026, subject to finalizing of the underwriting review and approval for this pending amendment. In a letter dated April 29, 2026, Megan Lasch, the representative of the Applicant, requested approval for a material amendment to the Application for a significant modification of the site plan, a modification of the bedroom mix of units, a significant modification of the architectural design.
The development plan includes the construction of residential units within two historic buildings, as well as the new construction of a third building with additional residential units and community space. Because the Development includes historic buildings, the development plan must be reviewed by state and federal agencies. Subsequent to the submission of the original Application, the State Historic Preservation Office (SHPO) and the National Park Service (NPS) expressed concern about the design. Based on their feedback and feedback from the neighborhood, certain elements of the Development have been amended.
The original site plan had 17 surface parking spaces on the site, which exceeded the number of parking spaces required by the City of Austin. During the zoning change hearings and site plan review process, the neighborhood expressed concerns about the number of parking spaces and requested more on-site parking spaces for the residents. In order to accommodate this request, the design of the Development has changed to include more parking. The parking has increased from 17 spaces to 29 spaces by providing parking between the historic buildings and the new construction building.
Additionally, the historic buildings have changed from the time of Application based on comments received during the historic review, which occurred after submission of the application. Certain elements of the historic buildings must remain unaltered, including some interior corridors, certain windows and doors, and exterior facades. The building floor plans, unit floor plans, and square footages have changed to incorporate the required historic elements.
The 76 total units is unchanged from the time of Application; however, the total Net Rentable Area (NRA) has increased from 56,868 square feet to 58,150 square feet. Common Area has also increased from 12,305 square feet at Application to 12,962 square feet. Additionally, there has been a change to the unit mix due to the changes with the buildings. At Application, the 76 total units proposed included 10 efficiency units, 28 one-bedroom/one-bathroom units, 29 two-bedroom/two-bathroom units, and nine three-bedroom/two-bathroom units. The proposed amendment includes eight efficiency units, 30 one-bedroom/one-bathroom units, 29 two-bedroom/two-bathroom units, and nine three-bedroom/two-bathroom units.
Also, due to the historic review determination that certain elements of the historic buildings remain unaltered, the proposed modifications and additions to the historic buildings that initially accommodated the 42 units would not be approved. Therefore, in order to maintain the required historic features, the architectural plans have been revised, and a total of 36 units can be constructed fully or partially within the historic buildings. The Application for the Development was awarded five points for Historic Preservation, which requires that at least 55% of the units be constructed fully or partially within the historic structures. The proposed amendment results in a reduction from 55.3% to 47.4% of the units being in the historic structures. As a result, the Applicant is requesting a waiver of 10 TAC §11.9(e)(6)(A)(i), which requires that for Developments with under 100 total units at least 55% of the residential units be constructed fully or partially within the historic structures. It was unknown at the time of Application that certain modifications that allowed for 55% of the units to be constructed in the historic structures would not be approved by SHPO and NPS. The alternative to this requested lower percentage would be a reduction in the total number of units that could be constructed on the Development site. The granting of this waiver would serve the purpose found in 2306.6701(2) which is to maximize the number of suitable, affordable residential rental units added to the state's housing supply.
The Applicant also explained that, while the parking proposed in the Application complied with City of Austin requirements, it was unknown at the time of application that the neighborhood would request more parking. Additionally, it was unknown at the time of application which elements of the historic buildings would need to remain unaltered in the final design. These changes are necessary to work with the neighborhood to finalize the site plan and to maintain historic elements in the existing buildings. The good cause for this amendment is to comply with local requests and historic requirements and to provide affordable units in Austin.
Additionally, the application to the Multifamily Direct Loan (MFDL) Program was submitted for this Development, and additional 30% units will be required in that application. This amendment request includes a financing structure that incorporates the additional rent and income restrictions for the MFDL program. The average income remains the same as at application, but there are more 30% units and more 80% units.
Staff’s re-underwriting review of the modified financing indicates no impact on the HTC amount. With the exception of the requested waiver, staff has determined that the proposed changes do not affect the scoring of the Application or the HTC award, and the Development will continue to meet the accessibility requirements.
Staff recommends approval of the Application amendment and granting of the waiver of 10 TAC §11.9(e)(6)(A)(i) as presented herein.