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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Lofts at Birdwell (HTC #25271)
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RECOMMENDED ACTION
recommendation
WHEREAS, Lofts at Birdwell (the Development) received an award of 9% Housing Tax Credits (HTCs) and State Housing Tax Credits in 2025 for the construction of 39 multifamily units for the general population in Big Spring, Howard County;
WHEREAS, Lofts at Birdwell LLC (Applicant) requests approval for a significant modification of the architectural design and site plan, including a reduction from two residential buildings and one common areas building to one building containing all units and common area, and increase in the number of units from 39 to 49, or 25.64%, by increasing the number of two-bedroom units by 10, resulting in an increase to the net rentable area of 8,763 square feet, or 28.12%, and a 25.64% increase in residential density, from 11.37 units per acre to 14.29 units per acre, and an increase in the common area of 1,527 square feet, or 22.99%, from 6,643 square feet to 8,170 square feet, and increase in the parking count from 89 open parking spaces to 92 open spaces;
WHEREAS, the Applicant also requests approval for an increase in the number of units at 60% of Area Median Income (AMI) units from 35 to 38 and introduction of seven market units;
WHEREAS, the Applicant is seeking to revise its structure by going from a limited liability company to a limited partnership named Lofts at Birdwell, LP, admitting as general partner of the Applicant CHDC Lofts at Birdwell GP, LLC, which is solely owned by Crossroads Housing Development Corporation, a nonprofit corporation, in order to qualify for a 50% property tax exemption;
WHEREAS, the Applicant is seeking to further revise the ownership structure by the creation of a special limited partner to ultimately be owned by an entity of Kanwarjit Ronnie Gyani (90%) and an entity of Jonathan Estrada (10%), who will be a new entrant to participation in the Development, acquiring the interest of BETCO Consulting, Inc.;
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, a significant modification of the architectural design of the Development, a modification of the residential density of at least 5%, and any other modification considered material by the staff as directed in Tex. Gov’t Code §2306.6712(d)(1), (2), (5), (6), and (7), and in 10 TAC §10.405(a)(4)(A), (B), (E), (F), and (I), and the Applicant has complied with the amendment requirements therein; and
WHEREAS, the requested changes do not negatively affect the Development, impact the viability of the transaction, impact the scoring of the Application, or impact the funding award;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Housing Tax Credit Application for Lofts at Birdwell, including the changes to the structure of the Applicant, Developer, and Guarantor, are 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 foregoing
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BACKGROUND
Lofts at Birdwell was approved for a 9% HTC award and a State Housing Tax Credit award in 2025 for the construction of 39 units, of which all are designated as low-income units, of multifamily housing for the general population in Big Spring, Howard County. In a letter dated March 26, 2026, Lora Myrick, the representative of the Applicant, requested approval for a material amendment to the Application for a significant modification of the site plan, an increase of 10 in the number of units, a significant modification of the architectural design, an increase of three in the number of 60% of AMI units, and introduction of seven market units.
The significant modifications of the architectural design include a reduction from two residential buildings and one common areas building to one building containing all units and common area, and increase in the number of units from 39 to 49, or 25.64%, by increasing the number of two-bedroom units by 10, resulting in an increase to the net rentable area of 8,763 square feet, or 28.12%, from 31,167 square feet to 39,930 square feet, and a 25.64% increase in residential density, from 11.37 units per acre to 14.29 units per acre, and an increase in the common area of 1,527 square feet, or 22.99%, from 6,643 square feet to 8,170 square feet, and increase in the parking count from 89 open parking spaces to 92 open spaces. The requested changes include an increase in the number of 60% of AMFI units from 35 to 38 and the introduction of seven market units.
The Applicant indicated that the reason for the material amendment is the result of value engineering to minimize and mitigate costs associated with detention requirements and additional retainage walls that would have been required for topographic concerns, as well as to accommodate feedback from the City of Big Spring on the need and desire for additional market rate units.
The Applicant also seeks to revise the ownership structure by going from a limited liability company to a limited partnership and transferring the general partner interest from Lofts at Birdwell MM, LLC, which is ultimately owned by Kanwarjit Ronnie Gyani, Abha Gyani, and four principals of BETCO Consulting, Inc. to CHDC Lofts at Birdwell GP, LLC, which is solely owned by Crossroads Housing Development Corporation, a nonprofit corporation, in order to qualify for a 50% property tax exemption.
The Application is additionally seeking to revise the ownership structure by entry of a special limited partner to ultimately be owned by an entity of Kanwarjit Ronnie Gyani (90%) and an entity of Jonathan Estrada (10%), who will be a new entrant to participation in the Development. Furthermore, BETCO Consulting, Inc. will transfer its interest in the Applicant and Developer to LIHTC Wiz, LLC, the sole member of which is Jonathan Estrada. Paul D. Stell is being added as an additional Guarantor, and Abha Gyani will no longer be a Guarantor. The changes in the structure of the Applicant, Developer, and Guarantor are to maintain financial feasibility with the 50% property tax exemption, as well as including an additional guarantor to meet REO experience requirements requested by the investor.
Staff analysis indicates that the revised design plans would continue to meet feasibility requirements and that the revised design plans and parking would continue to meet accessibility requirements. Additionally, staff reviewed the original Application and scoring documentation against this amendment request and has concluded that none of the changes would have affected the scoring or selection of the Application in the competitive round.
The Previous Participation Review for the changes to the ownership structure, Developer, and Guarantor has been completed with no issues identified, and these changes are included in this item for Board approval, although such changes can be approved administratively under 10 TAC §10.405(a)(3)(B) and 10 TAC §10.406(e).
Staff recommends approval of the Application amendment and changes to the structure of the Applicant, Developer, and Guarantor as presented herein.