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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Land Use Restriction Agreement for Valley Resaca Palms Apartments (HTC #95022)
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RECOMMENDED ACTION
recommendation
WHEREAS, Valley Resaca Palms Apartments (HTC #95022) received an allocation of 9% Housing Tax Credits (HTCs) in 1995 for the rehabilitation of 250 units for the elderly in Brownsville, Cameron County;
WHEREAS, the Land Use Restriction Agreement (LURA) for the Development states that throughout the 25-year Compliance Period, which ended on December 31, 2022, 80% of the units in the Development must be restricted to households in which at least one family member is 55 years or age or older;
WHEREAS, B.H. 2800 Ruben M. Torres Boulevard, L.P. (Development Owner or Owner) has continued to operate the Development as restricted for the elderly and requests approval to extend the elderly designation throughout the 40-year affordability period; and
WHEREAS, 10 TAC §10.405(b)(2)(C) states that changes to the Target Population are material amendments to the Land Use Restriction Agreement (LURA);
NOW, therefore, it is hereby
RESOLVED, that the Board approves amendment to the LURA of Valley Resaca Palms Apartments to extend the elderly restriction throughout the term of the LURA 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 foregoing.
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BACKGROUND
Valley Resaca Palms Apartments received an allocation of 9% Housing Tax Credits in 1995 for the rehabilitation of 250 units for the elderly in Brownsville, Cameron County. The LURA for the Development states that throughout the 25-year Compliance Period, which ended on December 31, 2022, 80% of the units in the Development must be restricted to households in which at least one family member is 55 years or age or older.
In a letter dated January 14, 2026, Laura Van Dyck, the representative for the Owner, requests approval to extend the elderly designation of the Development throughout the 40-year affordability period. The Owner has certified that the Development has continued to operate as elderly and meets the requirements of the Housing for Older Persons Act.
10 TAC §10.405(b)(2)(C) states that changes to the target population are material amendments to the LURA, requiring Board approval. At the meeting on July 10, 2025, the Board granted staff the authority to process requests to extend the elderly requirement as non-material amendments where the elderly restrictions have expired within two years of the amendment request and the Owner has certified that the property has continued to operate as elderly. However, because it has been more than two years since the end of the Compliance Period for this Development, this request to extend the elderly requirement requires Board approval.
The Owner complied with the requirements for requesting a material LURA amendment, including holding a public meeting and notifying each resident of the Development and the lender for the Development that they are requesting a LURA amendment to amend the LURA to extend the elderly requirement throughout the term of the LURA. There is no longer a syndicator involved with this Development. The public hearing was held on February 5, 2026. The Owner reported that five residents attended the public hearing, and the comments received were all in favor of maintaining the elderly designation at the Development.
Staff recommends approval of the amendment request as presented herein.