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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Hughes House (HTC #21017)
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RECOMMENDED ACTION
recommendation
WHEREAS, Hughes House (the Development) received a 9% Housing Tax Credit (HTC) award in 2021 and a reallocation of credits under force majeure in 2024 for the reconstruction of 162 units of multifamily housing for the general population in Fort Worth, Tarrant County;
WHEREAS, in November 2022, the Development was approved for a material amendment to, among other changes, decrease the number of units from 210 to 162 and decrease the area of the development site from 8.3969 acres to 4.888 acres;
WHEREAS, FW Hughes House, LP (Development Owner or Owner) requests approval for a further reduction to the acreage of the development site, from 4.888 acres to 4.5502 acres, which results in a 7.42% increase in residential density from 33.142 units per acre to 35.603 units per acre;
WHEREAS, Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does not materially alter the Development in a negative manner, was not reasonably foreseeable or preventable by the Owner at the time of Application, and would not have adversely affected the selection of the Application;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment of the Application for Hughes House 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 Board’s determination.
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BACKGROUND
Hughes House received a 9% Housing Tax Credit (HTC) award in 2021 and a reallocation of tax credits under force majeure in 2024 to reconstruct 162 units of multifamily housing, of which 145 units are designated as low-income units and 17 market units, for the general population in Fort Worth, Tarrant County. In a letter dated February 10, 2026, Mary-Margaret Lemons, the representative for the Owner, requested approval for a material amendment to the Application. The amendment is for a 7.42% increase in the residential density, going from 33.142 units per acre to 35.603 units per acre, which requires approval by the Board under Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F). The change is a result of a decrease in the Development site acreage from 4.888 to 4.5502 acres, a reduction of 0.3378 acre (6.91%).
In November 2022, the Development was approved for a material amendment to, among other changes, decrease the number of units from 210 to 162 and decrease the area of the development site from 8.3969 acres to 4.888 acres. The land survey submitted with the 2022 Material Amendment shows that Block A has a small strip of land that runs from south to north and is sandwiched between other properties to the west and east. During the closing due diligence period and further consideration by the developers, it was determined this land was not suitable for development. Additionally, as part of the permitting process, the eastern boundary of Block B was extended to accommodate the underground stormwater detention system that serves both Hughes House I and Hughes House III. As a result, these changes were incorporated into the metes and bounds legal description utilized for the ground lease and closing ALTA survey. Given this, the Owner is requesting a material amendment to the Application to further reduce the acreage from 4.888 acres to 4.5502 acres and increase the residential density from 33.142 units per acre to 35.603 units per acre. The unit density increase is 7.43% which is more than the 5% allowed for administrative approval. The unit and income distribution for the 162 units remain unchanged.
The requested amendment does not materially alter the Development in a negative manner and would not have affected the selection of the Development for the HTC award. Additionally, the revised design will continue to meet accessibility requirements.
Staff recommends approval of the requested material amendment to the Application.