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Presentation, discussion, and possible action regarding a waiver of 10 TAC §11.101(b)(4)(D) and (N) for Moore Grocery Lofts (HTC #24136)
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RECOMMENDED ACTION
recommendation
WHEREAS, Moore Grocery Lofts (the Development) received a 9% Housing Tax Credit (HTC) award in 2024 for the acquisition and rehabilitation of 88 low-income units in Tyler, Smith County;
WHEREAS, Moore Grocery Lofts Rehab, LLC (the Development Owner or Owner) is requesting a waiver for 10 TAC §11.101(b)(4)(D) and (N), which are the requirements for screens on all operable windows and the requirement for Energy-Star or equivalently rated windows as Mandatory Development Amenities, for the two historic buildings in the Development;
WHEREAS, the waiver request for the Energy-Star or equivalently rated windows for the two historic buildings is due to the difficulty in identifying and contracting with a window manufacturer that can meet the timing constraints associated with a competitive housing tax credit allocation;
WHEREAS, 10 TAC §11.101(b)(4) states that the Board may waive one or more of the requirements of the paragraph for Developments that include Historic Tax Credits, with evidence that the amenity has not been approved by the Texas Historical Commission or the National Park Service, as applicable;
WHEREAS, the Owner provided a letter dated October 6, 2025, from the Texas Historical Commission citing that the Development was subject to the Secretary of the Interior’s Standards for Rehabilitation and does not recommend window screens for the historic buildings and supports the waiver request; and
WHEREAS, the requested waiver does not negatively affect the Development, impact the viability of the transaction, impact Tex. Gov't Code §§2306.001, 2306.002, 2306.359, and 2306.6701, or affect the amount of the tax credits awarded;
NOW, therefore, it is hereby
RESOLVED, that the waiver request in the historic buildings for the window screens, and Quaker Windows in the historic buildings be found equivalent to Energy Star, is approved for Moore Grocery as presented to this meeting, 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
Moore Grocery Lofts received a 9% Housing Tax Credit award in 2024 for the acquisition and rehabilitation of 88 low-income units in Tyler, Smith County. All units in the Development are located in four buildings, and two of the buildings are listed in the National Register of Historic Places. Rehabilitation of the Development is currently in process.
In a letter dated October 3, 2025, Brannon Fitch, representative for the Owner, requested a waiver of 10 TAC §11.101(b)(4)(D) and (N), which require screens on all operable windows and Energy-Star or equivalently rated windows as mandatory amenities for rehabilitation developments. Energy-Star or equivalently rated windows are only required for rehabilitation developments if windows are planned to be replaced as part of the scope of work.
The replacement of all of the windows in the historic buildings is included in the scope of rehabilitation. The replacement windows must match the size, design, proportions, profiles, and appearance of the existing historic windows, and must feature clear glazing. In order to meet these requirements, the windows will be custom-made. The existing 100+ historic windows are single pane glass and constructed of wood. The Owner stated that it has been difficult to identify and contract with a window manufacturer that can meet the timing constraints associated with a competitive housing tax credit allocation. The Owner further stated that the recommended manufacturer with products previously approved by Texas Historical Commission (THC) and the National Parks Service (NPS), and able to deliver the windows in a timely manner to meet the placed in service deadline, is Quaker Windows. The U-Factor for their windows do not meet the minimum requirement for equivalency with Energy Star standards for Smith County, which is in the South-Central Climate Zone. The lowest U Factor that Quaker Historic Replica Window Products offers is 0.29, while the maximum allowed to meet Energy Star requirements for the South-Central Climate Zone is 0.28. The Owner pointed out that the southern border of Smith County is also the southern border of the South-Central Climate Zone. Cherokee County, which is immediately south of Smith County and in the Southern Climate Zone, has a rating of 0.32. Several of Quaker Windows products meet the equivalency test for Energy Star requirements for Cherokee County. The Owner requests waiver of the requirement for “Energy-Star or equivalently rated windows” for the two historic buildings. The Owner suggested that an alternative to a full waiver could be to apply the standards for the Southern Climate Zone when testing for equivalency of the windows.
A letter from the Texas Historical Commission dated October 6, 2025, was submitted in support of the waiver request regarding window screens. This letter states that the buildings were constructed between 1912 and 1917 and served as a major distribution center for wholesale grocery operations in downtown Tyler for much of the twentieth century. It was concluded that window screens were not historically present and would detract from the industrial character of the buildings. The letter from the Texas Historical Commission states that the Owner proposes to repair and retain the historic wood windows wherever feasible; however, the Standards for Rehabilitation do not permit further alterations that would diminish the integrity of the historic window openings or introduce non-historic features. The Owner indicated that in total 100 windows of the two historic buildings would be affected, and the two non-historical buildings would meet the requirements.
Staff recommends approval of the waiver request in the historic buildings for window screens, and recommends finding the Quaker Window product meets the equivalency test for use in the historic buildings, as presented herein.