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Presentation, discussion, and possible action on the approval of a loan for Crossroads Redevelopment
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RECOMMENDED ACTION
recommendation
WHEREAS, the above listed development was awarded 9% housing tax credits during the 2025 competitive Application round;
WHEREAS, the Developer applied for additional funds under the Department’s 2026-1 National Housing Trust Fund (NHTF) Notice of Funding Availability; and
WHEREAS, the Department is now recommending approval of a loan request in the amount of $5,191,318, with proposed loan terms and details concerning the Development’s financials outlined below;
NOW, therefore, it is hereby
RESOLVED, that the that loan of $5,191,318 of NHTF to Crossroads Redevelopment is approved, subject to conditions that may be applicable as found in the Real Estate Analysis Underwriting Report attached to this Board Action Request, any HUD required environmental conditions, and the conditions as outlined herein.
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BACKGROUND
Development Information: Crossroads Redevelopment is to be located in Austin, Travis County, and proposes the new construction of 110 units that will serve a Supportive Housing population. The Development will serve households with incomes at or below 30% to 60% of Area Median Family Income (AMFI).
The Development was initially proposed to have 12 30% AMFI units in its 2025 9% housing tax credit Application. As a result of this loan and an award of State Housing Tax Credits, the Development will have the following set-asides. A full unit mix is provided in the attached Real Estate Analysis Report:
In accordance with 24 CFR § 93.302, for 30% units under the Direct Loan LURA, the rent is, “not exceed the greater of 30 percent of the federal poverty line or 30 percent of the income of a family whose annual income equals 30 percent of the median income for the geographic area, as determined by HUD, with adjustments for the number of bedrooms in the unit.”
Financial Information: The Department’s $5,191,318 NHTF loan is to be structured as deferred repayable at 2.00% interest and is in first-lien position during the permanent period.
The Development was initially awarded $2,000,000 in federal housing tax credits and $469,300 in state housing tax credits in 2025. Since the last underwriting, total development costs have increased by $7.1m, bringing the current total development cost to approximately $47m. Credit pricing has remained strong at $0.885. Because this Development is Supportive Housing, the loan is deferred and will be due the earlier of the end of the Loan Term or upon sale, refinance, or transfer of the Property
The funds from this loan are sourced from the Department’s 2024 NHTF grant, which has a business day federal commitment deadline of September 4, 2026. Regardless if a longer period would be allowed by rule, the Borrower must submit all required due diligence and provide timely comments on the draft NHTF Contract to ensure execution of the Contract by both parties no later than August 21, 2026. Failure to meet this deadline may result in termination of the award, which will not be appealable to the Board of Directors if the Department no longer has access to the 2024 NHTF funds. The Borrower may also be subject to penalties under 10 TAC §13.11(b).