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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Ekos City Heights (HTC #20701)
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RECOMMENDED ACTION
recommendation
WHEREAS, Ekos City Heights (Development) received an award of 4% Housing Tax Credits (HTCs) in 2020 for the new construction of 179 units for the elderly population and was subsequently amended to be for the general population in Austin, Travis County;
WHEREAS, MHP City Heights, Ltd. (Development Owner or Owner) requests approval for a reduction in the Common Area from 37,641 square feet to 30,383 square feet, representing a reduction of 7,258 square feet or 19.28% from the Common Area represented at Application, which the Owner explains is due to the fact that the boundaries used to tabulate the corridors and circulation areas were accidentally double‐counted in some areas 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 selection of the Application, or affect the amount of housing tax credits awarded;
NOW, therefore, it is hereby
RESOLVED, that the requested amendment for Ekos City Heights 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
Ekos City Heights received an award of 4% Housing Tax Credits in 2020 for the new construction of 179 low-income units for the elderly population in Austin, Travis County. A Material LURA Amendment was approved in January 2026 to change the Target Population from Elderly to General as a result of weak demand for senior affordable housing in the Austin market. Construction of the Development was completed in 2024, and the cost certification documentation for the Development is currently review by the Department.
In a letter dated March 25, 2026, Rebecca Broadbent, Consultant for the Development, requested approval for a reduction in the Common Area from 37,641 square feet to 30,383 square feet, a reduction of 19.28% or 7,258 square feet. 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). The amendment request letter states that at Application the boundaries used to tabulate the corridors and circulation areas were accidentally double counted in some areas. This resulted in numbers that were higher than actually intended. The Owner’s consultant indicated that there was no real change between Application and as-built other than a math error that needs to be corrected and that there was no change in the amenity areas.
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 financial impact on the Development because of the proposed change. Staff has determined that this change does not affect the selection of the Application or the HTC 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 process.
Staff recommends approval of the amendment request as presented herein.