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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Green Oaks (HTC #19417)
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RECOMMENDED ACTION
recommendation
WHEREAS, Green Oaks (the Development) received a 4% Housing Tax Credit (HTC) award in 2019 for the new construction of 177 multifamily units in Houston, Harris County;
WHEREAS, AMTEX Green Oaks Fund, LP (the Development Owner or Owner) is requesting approval for a 19.95% decrease in the residential density, going from 25.50 units per acre to 20.42 units per acre, as a result of an increase in site acreage from 6.94 acres to 8.67 acres;
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 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 Green Oaks 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
Green Oaks received a 4% HTC award in 2019 for the new construction of 177 multifamily units in Houston, Harris County. In a letter dated March 7, 2024, Lisa Davis, representative for the Owner, requested approval for a change in residential density noted in the original Application. The Owner was required to purchase two parcels of land, Tract 1 (6.94 acres) and Tract 2 (1.73 acres), for a total of 8.67 acres. However, the Owner indicated only Tract 1 would be used for the Development, and therefore, requested to exclude Tract 2 from the Land Use Restriction Agreement (LURA). As a result, the acquisition price was prorated based on the acreage for Tract 1 in accordance with §11.302(e)(1)(A) of the 2019 QAP. The Owner submitted the Cost Certification that includes the purchase price for both tracts and the Ground Lease Agreement between the Housing Authority of the City of Houston and AMTEX Green Oaks Fund, LP, partnership agreement, and loan documents for the Development to support that both tracts are included. Therefore, to remain consistent with these documents, the Owner requests to include Tract 2 in the site acreage for the Development, which will require the LURA to be amended. Additionally, this will allow the cost of the 8.67 acres to be included in the cost certification.
The increase in the acreage to 8.67 acres reduces the residential density from 25.50 units per acre to 20.42 units per acre, or by 19.95%. 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). This change does not alter the Development in a negative manner nor does it adversely affect the selection of the Application. The final recommended HTC amount will be determined upon finalization of the cost certification analysis.
Staff recommends approval of the amendment request presented herein.