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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Red Oaks (HTC #22135)
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RECOMMENDED ACTION
recommendation
WHEREAS, Red Oaks (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2022 and was approved for reallocation of tax credits under force majeure in 2023 and 2025 for the construction of 70 units of multifamily housing in Austin, Travis County;
WHEREAS, HTG Anderson, LLC (the Development Owner or Owner) requests approval for changes to the architectural design, which include a redesign of the building, changes in the unit mix, replacing one efficiency unit and one one-bedroom unit with an additional two-bedroom unit and an additional three-bedroom unit, and changes to the Common Area resulting in a reduction of 6,512 square feet (29.37%), going from 22,173 square feet to 15,661 square feet;
WHEREAS, Board approval is required for a significant modification of the site plan, a modification of the bedroom mix of units, a reduction of 3% or more in the square footage of the common areas, and a significant modification of the architectural design of the Development as directed in Tex. Gov’t Code §2306.6712(d)(1), (2), (4), and (5) and 10 TAC §10.405(a)(4)(A), (B), (D), and (E), and the Owner has complied with the amendment requirements therein;
WHEREAS, Board approval of this amendment does not constitute a waiver of any of the rules or statutes applicable to the 2022 HTC Application, including but not limited to the accessibility requirements stated in Chapter 1, Subchapter B; and
WHEREAS, the requested changes do not negatively affect the Development, impact the viability of the transaction, impact the scoring of the Application, or affect the amount of funding awarded;
NOW, therefore, it is hereby
RESOLVED, that the requested amendment for Red Oaks 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
Red Oaks received an award of 9% Housing Tax Credits in 2022 and was approved for reallocation of tax credits under force majeure in 2023 and 2025 for the construction of 70 units of multifamily housing in Austin, Travis County. Construction of the Development is currently in progress. In a letter dated November 19, 2025, Matthew Rieger, the Owner’s representative, requested approval for a material amendment to the Application.
Following the HTC award, the Owner engaged a new architect to refine the building design and elevation. After a comprehensive review of the plans included in the HTC Application, the new architect recommended strategic modifications to the site plan to address critical factors impacting marketability, cost efficiency, and site constraints. Key revisions included, among other changes, the addition of private balconies, the reduction of interior corridor space, and the transition to double-loaded corridors. Common Area decreased 6,512 square feet (29.37%), going from 22,173 square feet to 15,661 square feet. The originally proposed laundry room was removed following consultation with the Owner’s property management company, who confirmed that residents in this submarket overwhelmingly prefer the convenience and option of having in-unit washer and dryer installations, which has now been provided.
At Application, the proposed bedroom mix was 10 efficiency units, 25 one-bedroom units, 27 two-bedroom units, and 8 three-bedroom units. After further review of the market that the Development intends to serve, the Owner believes that the Development would benefit from a revised bedroom mix, which includes reducing efficiencies and one-bedroom units by one each and increasing two- and three-bedroom units by one each. Due to the revised unit mix and other changes to the unit square footages, the Net Rentable Area increased slightly from 56,829 square feet at Application to 57,804 square feet.
The Owner stated that local population growth, especially among families and multi-person households, has increased the need for larger units and that market studies show that two- and three-bedroom units are leasing faster and offer more flexibility for shared living, which is critical in an area where housing costs remain high. Additionally, the Owner indicated that these adjustments to the Development ensure the project remains competitive, responsive to community needs, and financially sustainable. The change to the unit mix does not change the total unit count but improves the overall livability and appeal of the Development for the target population.
The requested changes do not materially alter the Development in a negative manner and were not reasonably foreseeable or preventable by the Development Owner at the time of Application. Staff recommends approval of the amendment request as presented herein.