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Presentation, discussion, and possible action regarding a partial waiver of Amendment Fees required under 10 TAC §11.901(10)
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RECOMMENDED ACTION
recommendation
WHEREAS, HVM Housing, LLC and HVM 5G Development, LLC were initially certified as Historically Underutilized Businesses (HUBs) in 2003 and 2012, respectively, and were subsequently recertified every four years until they were due for renewal in 2024;
WHEREAS, due to unforeseen issues with the Texas Comptroller of Public Accounts since August 2024, the certification of both HUBs has been denied, and the respective development owners for 18 developments in which these HUBs were included are requesting approval for the removal of the HUB requirement from the Land Use Restriction Agreement (LURA) for each development;
WHEREAS, the ownership structure or involvement of the entities in question is not changing, but each of these entities will no longer be participating as a HUB;
WHEREAS, 10 TAC §11.901(10) states that an amendment request for a non-material change that has not been implemented will not be required to pay an amendment fee, and material amendment requests (whether implemented or not), or non-material amendment requests that have already been implemented will be required to submit an amendment fee of $2,500 in order for the request to be processed, while fees for each subsequent amendment request related to the same Application will increase by increments of $500;
WHEREAS, 10 TAC §10.405(b)(2)(E) states that the removal of material participation by a HUB prior to filing of IRS Form(s) 8609 is a Material LURA Amendment;
WHEREAS, due to the fact that the entities in question are no longer certified HUBs, removing the HUB requirement at this point would be considered an implemented change, resulting in the need for amendment fees regardless of IRS Form(s) 8609 being issued or not;
WHEREAS, HVM Housing, LLC and HVM 5G Development, LLC request a reduced fee of $1,000 per amendment request instead of the required $2,500; and
WHEREAS, Material LURA Amendments require Board approval, and as a result, additional work than non-material amendments;
NOW, therefore, it is hereby
RESOLVED, that the requested partial waiver of the Amendment Fees is granted only for developments for which IRS Form(s) 8609 have been issued, and not granted for developments for which IRS Form(s) have not yet been issued, 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
HVM Housing, LLC and HVM 5G Development, LLC were initially certified as Historically Underutilized Businesses (HUBs) in 2003 and 2012, respectively, and were subsequently recertified every four years until they were due for renewal in 2024. Due to unforeseen issues with the Texas Comptroller of Public Accounts since August 2024, the certification of both HUBs has been denied. In a letter dated October 24, 2025, Carrie Hoover, authorized representative for HVM Housing, LLC and HVM 5G Development, LLC, representing the development owners for 18 developments listed in Exhibit A in which these HUBs were included, is requesting approval for the removal of the HUB requirement from the Land Use Restriction Agreement (LURA) for each development. The ownership structure or involvement of the entities in question is not changing, but these entities will no longer be participating as a HUB. HVM Housing, LLC and HVM 5G Development, LLC also request a reduced fee of $1,000 per amendment request instead of the required $2,500.
10 TAC §11.901(10) states that an amendment request for a non-material change that has not been implemented will not be required to pay an amendment fee, and material amendment requests (whether implemented or not), or non-material amendment requests that have already been implemented will be required to submit an amendment fee of $2,500 in order for the request to be processed, while fees for each subsequent amendment request related to the same Application will increase by increments of $500. 10 TAC §10.405(b)(2)(E) states that the removal of material participation by a HUB prior to filing of IRS Form(s) 8609 is a Material LURA Amendment, and due to the fact that the entities in question are no longer certified HUBs, removing the HUB requirement at this point would be considered an implemented change, resulting in the need for amendment fees regardless of IRS Form(s) 8609 being issued or not.
HVM Housing, LLC and HVM 5G Development, LLC request a reduced fee of $1,000 per amendment request instead of the required $2,500. However, it must be pointed out that Material LURA Amendments require Board approval, which requires additional work than non-material amendments. Based on the list of 18 developments submitted with this waiver request, seven developments have not yet been issued 8609s, and therefore, Board approval will be required for the material amendment to remove the HUB requirement. Alternatively, the owners could process an ownership transfer to put in another HUB, and this process would require a $1,000 fee for each development.
Staff recommends that the requested partial waiver of the Amendment Fees be granted only for developments for which IRS Form(s) 8609 have been issued -- and not granted for developments for which IRS Form(s) 8609 have not yet been issued. This would result in a $1,000 fee for each of the properties that have had their IRS Form(s) 8609 already issued, and $2,500 (or more, if there have been prior LURA amendments) for properties that do not yet have the 8609s.