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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Estelle Village (HTC #22408)
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RECOMMENDED ACTION
recommendation
WHEREAS, Estelle Village (the Development) received an award of 4% Housing Tax Credits (HTCs) in 2022 for the acquisition and rehabilitation of 300 units for the general population in Dallas, Dallas County;
WHEREAS, Estelle Community Partners, LP (the Development Owner or Owner) requests approval for a reduction in the Common Area from 8,049 to 5,458 square feet, representing a reduction of 2,591 square feet or 32.19% from the Common Area represented in the Architect Certification at Application;
WHEREAS, Board approval is required for a reduction of 3% or more in the square footage of the Common Area as directed in Tex. Gov’t Code §2306.6712(d)(4) and 10 TAC §10.405(a)(4)(D), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does not negatively affect the Development, impact the viability of the transaction, impact the scoring of the Application, or affect the amount of funding awarded;
NOW, therefore, it is hereby
RESOLVED, that the requested amendment for Estelle Village is approved as presented at this meeting, and the Executive Director and his designees are each hereby authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
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BACKGROUND
Estelle Village received an award of 4% Housing Tax Credits in 2022 for the acquisition and rehabilitation of 300 units for the general population in Dallas, Dallas County. Rehabilitation of the Development has been completed, and the Owner has submitted the cost certification documentation. Upon review of the cost certification, staff identified a change in the square footage of the Common Area from what was represented in the Application. In a letter dated March 8, 2024, Seth Gellis, the Owner representative, requested approval for a reduction in the Common Area.
The Application originally identified the Common Area as 8,049 square feet. However, according to the amendment request, the Common Area represented in the Architect Certification had an error in the number reported. The exact reason for the error cannot be determined and is assumed that it was a calculation typo. There was no interior building area added or removed from the property, but there was space reallocated to resident use that was previously serving property maintenance as well as community space that was reallocated to net rentable area in dwelling units. Based on a letter from the architect as of February 11, 2024, the pre-renovation Common Area totaled to 6,455 square feet, while the post-renovation Common Area totals to 5,458, representing a reduction of 2,591 square feet or 32.19% from the Common Area identified in the Architect Certification at Application and a reduction of 997 square feet or 15.45% from the 6,455 square feet of pre-renovation Common Area represented in the letter from the architect. Additionally, the Net Rentable Area has increased from 236,144 to 236,232 square feet, representing an increase of 88 square feet or 0.04% from the Net Rentable Area represented in the Architect Certification Application, but this change only requires notification to the Department.
The change to the Common Area square footage does not materially alter the Development in a negative manner, and was not reasonably foreseeable or preventable by the Development Owner at the time of Application. The Owner has indicated that there was no net financial impact on the Development as a result of the proposed changes. Staff has determined that this change does not affect the scoring of the Application or the funding award, and the Development will continue to meet the accessibility requirements. The final recommended HTC amount will be determined upon finalization of the cost certification review process.
Staff recommends approval of the amendment request as presented herein.