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Presentation, discussion, and possible action on an appeal for HWY 77 Seniors
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RECOMMENDED ACTION
recommendation
WHEREAS, HWY 77 Seniors is a 2024 9% Housing Tax Credit Application that was submitted in the Rural 7 subregion;
WHEREAS, staff terminated the Application on June 27, 2024, because the required Market Analysis was not submitted by the Market Analysis Delivery Date of April 4, 2024;
WHEREAS, the Applicant timely filed an appeal of the termination on July 3, 2024; and
WHEREAS, the Executive Director denied the appeal on July 8, 2024, stating that the matter cannot be cured in accordance with the definition of Administrative Deficiency.
NOW, therefore, it is hereby
RESOLVED, that the appeal for HWY 77 Seniors is hereby denied.
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BACKGROUND
The Department received documentation associated with the Application named above on March 1, 2024, which was submitted to compete within the Rural 7 subregion and proposes the New Construction of 24 affordable units in Giddings.
10 TAC 11.205 establishes requirements for Third Party Reports submitted with applications for Housing Tax Credits including submission deadlines:
For Competitive HTC Applications, the Environmental Site Assessment, Scope and Cost Review, Appraisal (if applicable), and the Primary Market Area map (with definition based on census tracts, and site coordinates in decimal degrees, area of PMA in square miles, and list of census tracts included) must be submitted no later than the Full Application Delivery Date as identified in §11.2(a) of this title (relating to Competitive HTC Deadlines Program Calendar) and the Market Analysis must be submitted no later than the Market Analysis Delivery Date as identified in §11.2(a) of this chapter. For Competitive HTC Applications, if the reports, in their entirety, are not received by the deadline, the Application may be terminated.
The Market Analysis Delivery Date identified in 10 TAC §11.2(a) for the 2024 cycle is April 4, 2024, and the Market Analysis for the Application was not submitted by that date. Accordingly, staff terminated the Application on June 27, 2024.
The Applicant timely appealed the termination on July 3, 2024, claiming that, while the Market Analysis was not submitted by April 4, 2024, the QAP specifies that the Application “may be terminated,” in this scenario, and therefore, the Executive Director could reinstate the Application and allow it to continue through the review process. The appeal further notes the possibility of the Rural 7 subregion not receiving a 9% Housing Tax Credit award this year, contingent upon the outcome of this appeal, and a separate, unrelated Application’s appeal.
10 TAC §11.1(d)(2)(A) relating to matters that will be treated by Department staff as Administrative Deficiencies states:
For Applications that are substantially complete, a minor quantity of missing signatures, documents, or similar clerical matters, the curing of which will not create change within the Application, unless the missing documentation is required to have existed as of the appropriate deadline and did not, or is otherwise not susceptible to resolution.
The Executive Director denied the appeal on July 8, 2024, on the basis that the required documentation did not exist as of the deadline, and therefore is not susceptible to resolution. Staff remains consistent in its position that the lack of submission of the Market Analysis cannot be treated as an Administrative Deficiency, and recommends that the appeal of the termination be denied.