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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Carson Crossings (HTC #22450)
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RECOMMENDED ACTION
recommendation
WHEREAS, Carson Crossings formerly known as Airport Gateway Apartments (the Development) received a 4% Housing Tax Credit (HTC) award in 2022 to construct 288 units, all of which are designated as low-income units, of multifamily housing in Austin, Travis County;
WHEREAS, to preserve this Development as set forth in the Application, after delays caused by a lengthy municipal permitting process coupled with significant cost escalations and a rapid rise in interest rates, Austin Gateway Apartments, LP (Development Owner or Owner) and its affiliates elected to build an overall master development under a single plan of financing, and as a result, the Owner requests approval to decrease the size of the Development site from 26.17 acres to 22.861 acres and to increase the number of units from 288 units to 592 units, without changing the number of low-income units, which results in a 135.31% increase in residential density, going from 11.01 units per acre to 25.90 units per acre;
WHEREAS, Board approval is required for a significant modification of the site plan, a modification of the number of units or bedroom mix of units, and a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(1), (2), and (6) and 10 TAC §10.405(a)(4)(A), (B), and (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, was not reasonably foreseeable or preventable by the Applicant 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 to the Application for Carson Crossings 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
Carson Crossings formerly known as Airport Gateway Apartments received a 4% Housing Tax Credit award in 2022 to construct 288 units, all designated as low-income units, of multifamily housing in Austin, Travis County. Construction of the Development was completed in 2025, and during the review of the request to originate the Land Use Restriction Agreement (LURA), a change in acreage was identified and it was determined that a greater than 5% change in residential density had occurred since the representation at Application. In a letter dated June 4, 2026, Matthew Iacopetta, the representative for the Development Owner, requested approval for two changes that occurred at the Development since the issuance of the Determination Notice. First, the Owner requests approval to modify the total acreage to represent the actual size of the Development site due to the dedication of land for right-of-way and parkland. Second, the Owner requests approval for a restructuring of the development plan as a single, larger mixed-income community under one plan of financing.
At the time of Application, the development plan contemplated a phased development plan whereby the overall acquired 41+ acre site would be bifurcated to accommodate Phase I or North Phase of approximately 26 acres, which would be the HTC Development, and a future Phase II of approximately 15 acres. Phase I became Unit 1 upon formation of the condominium regime. Unit 2 is a proposed Workforce Development Component. Delays caused by a lengthy municipal permitting process coupled with significant cost escalations/inflation and a rapid rise in interest rates materially impaired project economics making a standalone HTC project infeasible. To preserve development of the HTC project as set forth in the Application, the Development Owner and its affiliates elected to build the overall master development at once as a combined 592-apartment, mixed-income complex, under a single plan of financing. As a single larger project, the team was able to achieve construction and operational efficiencies as well as more favorable financing through Freddie Mac. While the overall project has been expanded to 592 apartments, the 288 HTC apartments and income targeting mixes, as well as the site plan and building plans remain in line with the Application.
As a result of the increase in the number of units, the net rentable area of the overall Development will increase from 264,584 square feet at Application to 553,854 square feet. The unit mix of the Development will now consist of 268 one-bedroom units, 232 two-bedroom units, and 92 three-bedroom units. At Application, the unit mix included 84 one-bedroom units, 136 two-bedroom units, and 68 three-bedroom units, and this unit mix will remain on the HTC portion of the condominium regime.
As part of the City of Austin’s site plan and permitting approvals for the overall multiphase development, the City required public dedications of street right-of-way (3.107 acres) and public parkland (15.167 acres) or a total of 18.274 acres which was applied to Phase I, Unit 1. The final acreage of Unit 1 is 10.951 acres and the addition of Unit 2 at 11.910 acres results in 22.861 acres for the overall Development site. The dedicated land consisted of street right-of-way and floodplain area that were not part of the developable footprint and were, from inception, designated for public use and maintenance by the City. The developable footprint, the building locations, and the site plan all remain as submitted in the Application, and the 288 HTC apartments continue to occupy the same developable area.
As a result of the increase in the total number of units and reduction to acreage, the residential density changed from 11.01 to 25.90 units per acre, which represents an increase of 135.31%, requiring approval by the Board under Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F).
The requested amendment does not materially alter the Development in a negative manner and would not have affected the selection of the Development for the HTC award. The underwriting analysis for this amendment indicates the Development remains feasible and reflects a change to the annual HTC amount, but the final recommended HTC amount will be determined through the cost certification process. The Owner will be required to pay any applicable fee for the increase to the HTC amount from the amount in the Determination Notice upon finalization of the cost certification review process.
Staff recommends approval of the requested material amendment to the Application, and if approved, the LURA will be recorded to reflect the increased number of units, the increased number of 504 accessible units, and the final revised acreage.