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Presentation, discussion, and possible action regarding a Material Amendment to the Application for Reserves at Holdsworth (HTC #21114/23926, HOME #1003221)
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RECOMMENDED ACTION
recommendation
WHEREAS, Reserves at Holdsworth (the Development) received an award of 9% Housing Tax Credits (HTCs) and a Multifamily Direct Loan (MFDL) in 2021 and Supplemental Credits in 2023 to construct 36 units, of which 32 are designated as low-income units, of multifamily housing in Kerrville, Kerr County;
WHEREAS, OPG Holdsworth Partners LLC (the Development Owner or Owner) requests approval for a reduction in the Common Area from 1,596 square feet to 1,314 square feet, representing a reduction of 282 square feet or 17.67% from the Common Area represented in the Architect Certification at Application;
WHEREAS, Board approval is required for a reduction of 3% or more in the square footage of the Common Area as directed in Tex. Gov’t Code §2306.6712(d)(4) and 10 TAC §10.405(a)(4)(D), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does 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 Reserves at Holdsworth 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
Reserves at Holdsworth received an award of 9% Housing Tax Credits and a Multifamily Direct Loan in 2021 and Supplemental Credits in 2023 to construct 36 units of multifamily housing, of which 32 are designated as low-income units, in Kerrville, Kerr County. Construction of the Development has been completed, and the cost certification documentation for the Development is currently under review by the Department. Upon review of the cost certification, staff identified a change in the square footage of the Common Area from what was represented in the Application.
In a letter dated May 29, 2025, April Engstrom, the Owner representative, requested approval for a reduction in the Common Area. The Application originally identified the Common Area as 1,596 square feet. However, the as-built Common Area is 1,314 square feet, a reduction of 17.67% or 282 square feet. According to the amendment request, the Common Area underwent a redesign during the construction phase to reconcile inefficiencies in design that were identified during the permitting process and implemented during construction. The letter further states that the substantial area of change to the clubhouse was to the library, which was eliminated, and with this change, hallways were narrowed and storage space was minimized to maximize the community room and warming kitchen. The enclosed table compares the floor plans for the Common Area of the Development at Application and the revised floor plan after the amendment.
The change to the Common Area square footage does not materially alter the Development in a negative manner and was not reasonably foreseeable or preventable by the Development Owner at the time of Application. The Owner has indicated that there was no net financial impact on the Development as a result of the proposed changes. Staff has determined that this change does not affect the scoring of the Application or the funding award, and the Development will continue to meet the accessibility requirements. The final recommended HTC amount will be determined upon finalization of the cost certification review process.
Staff recommends approval of the amendment request as presented herein.