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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Cleveland Square (HTC #23081)
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RECOMMENDED ACTION
recommendation
WHEREAS, Cleveland Square (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2023 for the rehabilitation of 48 units for the general population in Cleveland, Liberty County;
WHEREAS, due to the City of Cleveland granting parking area to the Development, Cleveland Square Housing, Ltd. (the Development Owner or Owner) requests approval to increase the size of the Development site from 1.4876 acres identified at Application to 2.018 acres, that is an increase of 0.5304 acre and results in a 26.28% decrease in residential density, from approximately 32.267 units per acre to 23.786 units per acre;
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 amendment of the Application for Cleveland Square is approved as presented at this meeting, and the Executive Director and his designees are each hereby authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
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BACKGROUND
Cleveland Square received an award of 9% Housing Tax Credits in 2023 for the acquisition and rehabilitation of 48 units for the general population in Cleveland, Liberty County. In a letter dated January 23, 2025, Robbye G. Meyer, the representative for the Owner, requested approval for a material amendment to the Application.
The requested amendment is for a 26.28% decrease in the residential density, from approximately 32.267 units per acres to 23.786 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). The change is a result of an increase in the Development site acreage from 1.4876 to 2.018 acres, an increase of 0.5304 acre. The Owner states that during the process of acquisition, it was discovered that the existing parking spaces along the site on Waco and Travis Streets were outside of the Development’s boundaries and within encumbrances of the City of Cleveland (the City). The Owner explains that this presented a challenge to the Development to remain compliant with accessibility requirements because the City was not maintaining the parking area. Therefore, it was the City’s preference to grant the acreage containing the parking areas to the Development to remove their maintenance and compliance obligations.
The Owner confirmed that there will be no change to the accessible parking originally identified at Application. Additionally, the Owner states that this amendment was unforeseeable because the boundary and encumbrance issues were not known until all due diligence was completed through the purchase process.
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 tax credit recommendation will be determined upon finalization of the cost certification review process.
Staff recommends approval of the requested material amendment to the Application.