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Presentation, discussion, and possible action on an appeal of the termination of the Application for Breezy Meadows
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RECOMMENDED ACTION
recommendation
WHEREAS, Breezy Meadows is a 2026 9% Housing Tax Credit Application that requests $1,308,049 for the New Construction of 49 Units in Robstown, Nueces County;
WHEREAS, 10 TAC §11.2(a) establishes the Full Application Delivery Date to be February 27, 2026, and in accordance with 10 TAC §11.1(f), “the information or documentation subject to the deadline must be received by the Department on or before 5:00 p.m. Austin local time on the day of the deadline;”
WHEREAS, the Application submitted by the deadline was substantially incomplete;
WHEREAS, a second set of Application documents was submitted at approximately 8:00 p.m., but was not accepted by the Department due to being submitted after the deadline; and
WHEREAS, staff terminated the Application for being complete, which the Applicant timely appealed;
NOW, therefore, it is hereby
RESOLVED, that the appeal of the termination of Breezy Meadows is hereby denied.
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BACKGROUND
Breezy Meadows is a 2026 9% Housing Tax Credit Application that requests $1,308,049 for the New Construction of 49 Units in Robstown, Nueces County.
10 TAC §11.2(a) establishes the Full Application Delivery Date for 2026 9% Applications to be February 27, 2026, and in accordance with 10 TAC §11.1(f), “the information or documentation subject to the deadline must be received by the Department on or before 5:00 p.m. Austin local time on the day of the deadline.”
A file titled “262598_Full ApplicationTC” was timely submitted. While the Department has not performed a full review of this file, significant issues were readily apparent. These issues include, but are not limited to:
• Several entire tabs of the Application are missing, including:
o Tab 23a - Accessible Mobility Units Calculation
o Tab 24 - Rent Schedule
o Tab 26 - Annual Operating Expenses
o Tab 28 - Off-Site Cost Breakdown
o Tab 29 - Site Work Cost Breakdown
o Tab 30 - Development Cost Schedule
o Tab 31 - Schedule of Sources of Funds and Financing Narrative
o Tab 34 - Finance Scoring
o Tab 37 - Owner and Developer Organization Charts
o Tab 38 - List of Organizations and Principals
o Tab 39 - Previous Participation
o Tab 42 - Development Team
• An appraisal, as required by 10 TAC §11.205(4) was not timely submitted
• No site plan was included
• The Development Owner Certification was not included
Several additional files were submitted by the Applicant after the 5:00 p.m. deadline, the last of which completed uploading at 7:59 p.m., and therefore were not accepted as part of the Application by the Department. Because the Application was substantially incomplete as of the deadline, it was terminated.
The appeal requests that the Board reinstate the application on the grounds that the Applicant encountered difficulties accessing the Department’s Serv-U file system (the platform used to upload application materials) on the afternoon the submission was due. The Application had initially been submitted as a pre-application, and login instructions were emailed to the pre-application’s primary contact on February 19. Following a change in the primary contact, the Applicant was unable to access the system. Updated login credentials were provided at 4:42 p.m.
Staff acknowledges that the Applicant was delayed in logging into the system; however, it is unclear as to how this directly resulted in Application materials being submitted several hours after the deadline. Staff recommends that the appeal be denied.