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Presentation, discussion, and possible action on approval of a loan to Pine Creek Apartments
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RECOMMENDED ACTION
recommendation
WHEREAS, the above listed development was awarded 9% housing tax credits during the 2025 competitive Application round;
WHEREAS, the Developer applied for additional funds under the Department’s 2026-2 HOME Notice of Funding Availability; and
WHEREAS, the Department is now recommending approval of a loan in the amount of $6,100,000, with proposed loan terms and details concerning the Development’s financials outlined below;
NOW, therefore, it is hereby
RESOLVED, that the that loan of $6,100,000 of HOME to Pine Creek Apartments is approved, subject to conditions that may be applicable as found in the Real Estate Analysis Underwriting Report attached to this Board Action Request, any HUD required environmental conditions, and the conditions as outlined herein.
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BACKGROUND
Development Information: Pine Creek Apartments is to be located in Bastrop, Bastrop County, and proposes the new construction of 52 units that will serve the elderly population. The Development will serve households with incomes at or below 30% to 60% of Area Median Family Income (AMFI).
The Development will have the following set-asides. A full unit mix is provided in the attached Real Estate Analysis Report:
Financial Information: The Department’s $6,100,000 HOME loan is to be structured, as a forty-year term and a forty year amortization, with monthly repayments and includes\a 3.00% interest rate. The Department is in first-lien position during the permanent period.
The Development was initially awarded $1,125,000 in federal housing tax credits and $200,000 in state housing tax credits in 2025. Since the last underwriting, total soft costs have increased by approximately $1.4 million due to higher-than-anticipated architectural and engineering fees, as well as unexpected fee increases from the City of Bastrop related to tree mitigation and parkland fees.
The Department’s loan will replace a HUD 221(d)(4) loan from Mason Joseph that was previously proposed to have a 5.75% interest rate. The replacement of this loan will allow the project to remain financially feasible.