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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Carver Ridge (HTC #21177/#22839/#23942)
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RECOMMENDED ACTION
recommendation
WHEREAS, Carver Ridge (Development) received an award of 9% Housing Tax Credits (HTCs) in 2021, was approved for a reallocation of credits under Force Majeure in 2022 (HTC #22839), and was awarded Supplemental Credits in 2023 (HTC #23942) to construct 60 multifamily units, 48 of which all are low-income units, in Hutto, Williamson County;
WHEREAS, Carver Ridge Apartments, LP (the Development Owner or Owner) is requesting approval for a 6.76% decrease in the residential density, going from 8.547 units per acre to 7.969 units per acre, as a result of an increase in site acreage, from 7.02 acres to 7.529 acres, due to a change in construction of a Right of Way (ROW);
WHEREAS, Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does not materially alter the Development in a negative manner, affect the HTC recommendation, and would not have adversely affected the selection of the Application;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Application for Carver Ridge is approved as presented to this meeting, and the Executive Director and his designees are hereby, authorized, empowered, and directed to take all necessary action to effectuate the foregoing.
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BACKGROUND
Carver Ridge received an award of 9% Housing Tax Credits in 2021, was approved for a reallocation of credits under Force Majeure in 2022 (HTC #22839), and was awarded supplemental credits in 2023 (HTC #23942) to construct 60 multifamily units, 48 of which are low-income units, in Hutto, Williamson County. In a letter dated April 29, 2024, the Owner requested approval for a change in the acreage and residential density noted in the original Application. At Application, the developer purchased a total of 16.65 acres and it was expected that 7.74 acres would be developed for this project. After a dedication of 0.735 acres for a right-of-way (ROW) as a city street, the LURA would encumber 7.02 acres. The Owner indicated that after application and upon further review of the proposed street dedication with the City of Hutto (the City), it was decided that granting an access easement over private land would provide a greater benefit for both the City and the Development. This allows for all adjoining parcels to have access to County Road 137 and increases the taxable land basis of the Development for the City in future tax years. The access easement is owned by the Development and is within the total platted site acreage of 7.529 acres. The Owner also indicated the intent was to always provide the ROW to the adjoining parcels and feel the way the Development was constructed was the best way to serve the community of Hutto with a housing project that prioritized the greater interest of the City as a whole.
This change in acreage from 7.02 acres to 7.529 acres will decrease the residential density of the Development by 6.76%, from 8.547 units per acre to 7.969 units per acre. Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F).
Staff has reviewed the original Application against this amendment request and has concluded that the change described above would not have affected the award. The final recommended credit amount will be determined at cost certification.
Staff recommends approval of the amendment request presented herein.