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Presentation, discussion, and possible action regarding a waiver relating to the applicability of a local Public Housing Authority Utility Allowance for Lapiz Flats HOME American Rescue Plan Application 23712
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RECOMMENDED ACTION
recommendation
WHEREAS, Lapiz Flats (9% Housing Tax Credit 22297) applied for 9% Housing Tax Credits (HTCs) in 2022 and was awarded $1,366,000 in HTCs in July 2022;
WHEREAS, Lapiz Flats (HOME-ARP 23712) applied gap financing funds under the 2023-2 HOME American Rescue Plan (HOME-ARP) Rental Development Notice of Funding Availability (NOFA) and received an award of $1,506,500 in July 2023;
WHEREAS, in December, 2024, during the post-award process, the Applicant notified staff that the project was approved for Project-Based Vouchers (PBVs) by the Dallas Housing Authority (DHA), and submitted supporting documentation;
WHEREAS, the Applicant is requesting a nonmaterial amendment to include the vouchers under 10 TAC §10.405(a) which allows Applicants to request amendments to their Applications after award prior to the Land Use Restriction Agreement recording; and
WHEREAS, as part of the nonmaterial amendment request, the Applicant requests a waiver under §11.207, which authorizes the Board to waive rules, to waive 10 TAC §10.614(c)(3)(A) so that the development may calculate Utility Allowances according to the Dallas Housing Authority payment standard for the project located in Grand Prairie because of the vouchers;
NOW, therefore, it is hereby
RESOLVED, the waiver request for Lapiz Flats to use the Utility Allowances for the Dallas Housing Authority in Grand Prairie is approved as presented to this meeting, and the Executive Director and his designees are each authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
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BACKGROUND
Lapiz Flats, LLC, is the owner of Lapiz Flats in Grand Prairie, which is a New Construction project that received a 2022 9% HTC award and a 2023 HOME-ARP award for gap financing. Lapiz Flats is a 69-unit new construction elderly housing project. In December 2024, the Applicant submitted supporting documentation to staff to show that the DHA PBV’s are senior-specific for persons aged 62+. The total cost of the proposed new construction is $16,779,636, of which $1,366,000 is Housing Tax Credits and $1,506,500 is the HOME-ARP award.
10 TAC §10.614(c)(3)(A) regarding Utility Allowances states:
“(3) Other Buildings. For all other rent-restricted Units, Development Owners must use one of the methods described in subparagraphs (A) - (E) of this paragraph: (A) Public Housing Authority (PHA). The Utility Allowance established by the applicable PHA for the Housing Choice Voucher Program. The Department will utilize the Texas Local Government Code, Chapter 392 to determine which PHA is the most applicable to the Development.”
The “applicable PHA for the Housing Choice Voucher Program” would be the Grand Prairie PHA. However, because the vouchers are from Dallas Public Housing Authority, the Applicant requests that the “applicable” PHA is deemed to be the Dallas Public Housing Authority.
The waiver is requested to allow for Utility Allowances to be calculated so that Utility Allowances for all units match estimations calculated by the DHA PBV award. This waiver would assist the project and the Department in meeting the purpose of the Department in Tex. Gov’t Code §2306.001 to provide for the housing needs of individuals and families of low, very low and extremely low income…” As such, staff recommends approval of the waiver to the Utility Allowance estimation method per 10 TAC §10.614(c)(3)(A).