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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Oleanders at Broadway (HTC #21418)
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RECOMMENDED ACTION
recommendation
WHEREAS, Oleanders at Broadway (the Development) received a 4% Housing Tax Credit (HTC) award in 2021 for the new construction of 348 units, of which 261 are low-income, of multifamily housing for the general population in Galveston, Galveston County;
WHEREAS, The Oleanders at Broadway, LP (Development Owner or Owner) requests approval to decrease the size of the Development site from 10.05 acres to 9.432 acres, which results in a 6.55% increase in residential density, going from 34.627 units per acre to 36.896 units per acre;
WHEREAS, the Owner is also requesting approval for a reduction in the Net Rentable Area from 328,267 square feet to 313,223 square feet, which represents a reduction of 15,044 square feet (4.58% decrease) from the Net Rentable Area represented at Application;
WHEREAS, Board approval is required for a reduction of 3% or more in the square footage of the units and for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(4) and (6) and 10 TAC §10.405(a)(4)(D) and (F), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested changes do not materially alter the Development in a negative manner, were 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 Oleanders at Broadway 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
Oleanders at Broadway received a 4% Housing Tax Credit (HTC) award in 2021 for the new construction of 348 units, of which 261 are low-income, of multifamily housing for the general population in Galveston, Galveston County. Construction of the Development has been completed, and the cost certification documentation for the Development is currently under review by the Department. In a letter dated April 9, 2026, Mona Purgason, the representative for the Development Owner, requested approval for an increase in residential density and a reduction of the Net Rentable Area.
The Owner requests approval to decrease the size of the Development site from 10.05 acres to 9.432 acres, which results in a 6.55% increase in residential density, going from 34.627 units per acre to 36.896 units per acre. The acreage reflected in the original Application of 10.05 acres was based on an estimated site area excluding rights-of-way, as the land use entitlement process and preliminary plat approval were being pursued concurrently with the Application process. Following construction completion, the City of Galveston (the City) imposed additional infrastructure-related requirements that were subsequently completed in June 2025. Thereafter, the City proceeded with the remaining plat approval process. The final Plat Map and legal description formally established the final site acreage of 9.432 acres.
Additionally, the Net Rentable Area (NRA) has decreased from 328,267 square feet to 313,223 square feet, representing a decrease of 15,044 square feet or 4.58% from the Net Rentable Area represented at Application. The amendment request letter states that the underwriting report incorrectly identifies 328,267 square feet as the NRA and that per the plans submitted in the Application, the Gross Square Foot Area for the Development was 337,253. The amendment request letter further states that the submitted plans also show 309,884 square feet as the NRA and that the development team did not notice the error in the underwriting report and did not request a change. However, staff confirmed that, while the original Application identified NRA of 309,884 square feet, there were subsequent revisions to the Application ultimately reflecting NRA of 328,267 square feet as identified in the underwriting report.
The changes to the residential density and Net Rentable Area do not materially alter the Development in a negative manner and were not reasonably foreseeable or preventable by the Owner at the time of Application. Staff has determined that these changes do not affect the selection of the Application or the funding award. The final recommended HTC amount will be determined upon finalization of the cost certification process.
Staff recommends approval of the requested material amendment to the Application.