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Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for Las Fuentes (HTC #25053)
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RECOMMENDED ACTION
recommendation
WHEREAS, Las Fuentes (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2025 for the construction of 105 multifamily units for the elderly population in Mission, Hidalgo County;
WHEREAS, RST Las Fuentes, LP (Applicant) requests approval for a significant modification of the site plan and architectural design, including an increase from two residential buildings and one common areas building to five residential buildings and one common areas building, a decrease in the common area of 3,033 square feet, or 15.33%, from 19,788 square feet to 16,755 square feet, and a decrease in the parking count of 36 spaces, or 14.63%, from 246 open parking spaces to 210 open spaces;
WHEREAS, Board approval is required for a significant modification of the site plan, a reduction of 3% or more in the square footage of the Units or common areas, and a significant modification of the architectural design of the Development as directed in Tex. Gov’t Code §2306.6712(d)(1), (4), and (5), and in 10 TAC §10.405(a)(4)(A), (D), and (E), 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 HTC award;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Housing Tax Credit Application for Las Fuentes is 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
Las Fuentes was approved for a 9% HTC award in 2025 for the construction of 105 units of multifamily housing for the elderly population in Mission, Hidalgo County. In a letter dated April 13, 2026, Clifton Phillips, the representative of the Applicant, requested approval for a material amendment to the Application for a significant modification of the site plan, a significant modification of the architectural design, and a reduction of 3% or more in the square footage of the common areas.
The significant modifications of the site plan and architectural design include an increase from two residential buildings and one common areas building to five residential buildings and one common areas building, a decrease in the common area of 3,033 square feet, or 15.33%, from 19,788 square feet to 16,755 square feet, and a decrease in the parking count of 36 spaces, or 14.63%, from 246 open parking spaces to 210 open spaces, which is the number of parking spaces required by local code. The reduction to the common area is due to reduced breezeways. The clubhouse size increased 1,234 square feet, or 41.70%, from 2,959 square feet to 4,193 square feet.
The Applicant indicated that the material amendment is the result of the recommendations of the civil engineer after further investigation and review of the drainage calculations, preparation of a topographic survey and topographic considerations, and the City of Mission’s preferences for achieving integration of the community into the surrounding single-family neighborhood.
The Applicant reported that the new site plan, incorporating the smaller building footprints and a lower profile design, provides for improved integration with the surrounding single-family neighborhoods to the east and south and is a better design for the site topography, as the revised design eliminates need for retaining walls and offers compatibility with the required drainage design. The Applicant additionally reports the revised site plan: allows for improved parking spatial placement for tenants, while reducing excess parking spaces above code requirement as had originally been proposed; improves tenant accessibility, as units in smaller buildings are more easily accessible; and adds a gazebo structure overlooking the greenspace/detention.
The Applicant reports the proposed changes were not reasonably foreseeable or preventable by the Applicant at the time of Application and will not alter the approved project budget presented at Application. The Applicant indicated that the proposed changes will allow the Applicant to achieve delivery of units earlier in 2027, despite the allocation of credits having been from the waitlist just before Christmas 2025, thus stabilizing the tax credit pricing in spite of the later start of construction on the project.
Staff confirmed 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 final recommended HTC amount will be determined at cost certification.
Staff recommends approval of the Application amendment as presented herein.