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Report on Third Party Request for Administrative Deficiency under 10 TAC §11.10 of the 2025 Qualified Allocation Plan
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BACKGROUND
Pursuant to 10 TAC §11.10 of the 2025 Qualified Allocation Plan related to Third Party Requests for Administrative Deficiency (RFAD), an unrelated person or entity may bring new, material information about an Application to staff’s attention. Third parties may request that staff consider whether an Application should be the subject of an Administrative Deficiency, based on the information submitted with the request. At the time of filing the request, requestors must provide all briefings, documentation, and other information that the requestor offers in support of the deficiency. Requestors must provide sufficient credible evidence that, if confirmed, would substantiate the deficiency request. Assertions not accompanied by supporting documentation susceptible to confirmation will not be considered. The deadline for submission of RFADs was April 15, 2025, and 18 RFADs were submitted by this date.
The following describes the staff determinations for 2025 Competitive Housing Tax Credit (HTC) RFADs received that presented new, material information not present in the Application, and reflects all determinations on active applications made as of April 28, 2025. All requests referenced herein were received and reviewed in accordance with 10 TAC §11.10. Where staff determined that the request substantiated the issuance of a Notice of Administrative Deficiency for the Application, the Applicant will be provided the opportunity to respond to the submitted request.
RFADs are required to present new, material information in order to be considered. In accordance with 10 TAC §11.10(c):
If the assertion(s) in the RFAD describe matters that are part of the Application review process, and the RFAD does not contain information not present in the Application, staff will not review or act on it.
Each of the 18 entries below identifies the HTC development/application identification number (TDHCA ID#), the name of the development, city, region, and the name and organization of the requestor. A brief summary of each request has been included for RFADs that meet the requirements of 10 TAC §11.10, followed by Department staff’s analysis of the request, and finally the staff resolution of the request if such resolution is currently available.
The Department’s Governing Board has final decision-making authority on any of the issues reflected herein, and thus these determinations are subject to change; however, an RFAD requester may not formally appeal the staff determination of an RFAD through the Appeals Process. See 10 TAC §11.902(b) and 10 TAC §11.10.
Where staff concluded that a request would result in loss of points or other action, the impacted Applicants have already been notified and given the separate opportunity to appeal the staff determination.
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TDHCA ID# |
25051 |
Development: |
Mandalay |
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City: |
Palmview |
Region: |
11 Urban |
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Requested By: |
Enrique Flores, IV |
Nature and Basis of Request:
The QAP includes a tie-breaker that prioritizes Development Sites located in close proximity to valuable local amenities, including parks, libraries, grocery stores, and the elementary school of attendance. The specific requirements for a grocery store to qualify are as follows:
A full service grocery store of sufficient size and volume to provide for the needs of the surrounding neighborhood including the proposed Development; offering a wide variety of fresh, frozen, canned and prepared foods, including but not limited to a variety of fresh meats, poultry, and seafood; a wide selection of fresh produce including a selection of different fruits and vegetables; a selection of baked goods and a wide array of dairy products including cheeses, and a wide variety of household goods, paper goods and toiletry items.
While this definition may initially appear to be overwrought, such specificity is required in order to ensure that the grocery store used for the tie-breaker is truly full service and suitable for consideration in the allocation of Housing Tax Credits.
The request suggests that the grocery store submitted for this Application’s tie-breaker is not compliant with the QAP, as it closed permanently on March 15, 2025, and also because it did not carry frozen foods while it was open.
Applicant Response to Notice of Administrative Deficiency:
An Administrative Deficiency has been issued that requests that the applicant substantiate that the grocery store in question met all applicable requirements of the QAP as of the Full Application Delivery Date. The Applicant is still within the allowable period to respond to the Administrative Deficiency as of the date of the preparation of this report.
Analysis and Resolution:
Should the Applicant be unable to substantiate that the grocery store qualified as of the Full Application Delivery Date, then staff will exclude that store from consideration when determining the Application’s competitiveness in any resulting ties (subject to the Applicant’s ability to appeal).
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TDHCA ID# |
25051 |
Development: |
Mandalay |
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City: |
Palmview |
Region: |
11 Urban |
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Requested By: |
Robbye Meyer |
Nature and Basis of Request:
This request presents an issue related to the grocery store that is substantially similar to the previous request. Please refer to staff’s analysis of that request for further information. The request also raises an issue concerning the Application’s supporting documentation for Proximity to Jobs points. This matter is addressed later in the final section of this report.
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TDHCA ID# |
25065 |
Development: |
Meadow Heights |
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City: |
Pharr |
Region: |
11 Urban |
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Requested By: |
Enrique Flores, IV |
Nature and Basis of Request:
This request raises three issues. Two of those issues (related to the number of affordable Units provided and the Application’s eligibility for points related to Readiness to Proceed) do not provide new information, and therefore are not analyzed in this report. The request also suggests that the grocery store used for the Application’s tie-breaker is substantially further from the Development Site than is represented in the Application.
Applicant Response to Notice of Administrative Deficiency:
Staff determined that a Notice of Administrative Deficiency was not necessary for this request as a determination could be made without one.
Analysis and Resolution:
Should the Application be tied with other Applications in a position that is competitive for an award of funding, staff will review the location of the grocery store in question and make a determination at that time. If staff determines that the location of the store has been substantially misrepresented, then the store will be excluded when determining the Application’s competitiveness in any resulting ties (subject to the Applicant’s ability to appeal).
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TDHCA ID# |
25112 |
Development: |
Heritage Estates at Medina |
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City: |
San Antonio |
Region: |
9 Urban |
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Requested By: |
Stanley D. Cohen |
Nature and Basis of Request:
The request suggests that the Application does not provide adequate parking spaces consistent with local code, as is required by the QAP. The Applicant has applied for a redesignation of the Development Site to San Antonio’s “MF-18 - Limited Density Multi-Family District” base zoning. The RFAD suggests that a minimum of 1.5 parking spaces per unit is required for this zoning district, which would result in a minimum of 129 parking spaces. As submitted, the Application provides 113 parking spaces.
The request also disputes the elementary school identified for the Application’s tie-breaker. It asserts that the selected elementary school is not the school of attendance for the Development Site, as required by the QAP, but instead belongs to a different attendance zone. The QAP sets forth the following criteria for selecting an elementary school for use in the tie-breaker:
The elementary school of attendance. In districts with district-wide enrollment or choice, the Applicant shall use the closest elementary. If a school is configured to serve grades that do not align with the Texas Education Agency's conventions for defining elementary schools, the closest campus of attendance that serves any grade from kindergarten to fifth grade shall be used.
Applicant Response to Notice of Administrative Deficiency:
An Administrative Deficiency has been issued as a result of this request that asks the Applicant to explain how the Application, as submitted, complies with local parking minimums. The Applicant is still within the allowable period to respond to the Administrative Deficiency as of the date of the preparation of this report.
Analysis and Resolution:
Staff has completed a preliminary review of the parking standards for San Antonio’s MF-18 Zoning District and believes that the issue raised in the request may be valid. San Antonio’s Unified Development Code prescribes minimum off-street parking for Developments. In Residential Use Districts, the minimum number of parking spots appears to be 1.5 per unit; however, zoning regulations are notoriously complex, and staff does not have expertise in individual municipal development codes. A final determination will be made once the Applicant’s response to the Administrative Deficiency is received and reviewed, and any negative determinations made as a result of that review will be subject to the Applicant’s ability to appeal.
The matter related to the elementary school of attendance is particularly nuanced. The Application claims Southwest ISD for the elementary school of attendance, but the request disputes this and suggests that Northside ISD is the school of attendance. The complicating factor is that the boundary of these two school districts runs through the Development Site. To assist in visualizing this, the request provides a map that shows the proposed Development Site, the location of the buildings contained within the Application, and the boundary of the two school districts:
The Application includes a letter from the Deputy Superintendent of Southwest ISD (the district that is most beneficial to the Application in the tie-breaker). That letter states that:
Please accept this letter as confirmation that a portion of the proposed development site for Heritage Estates at Medina is within the Southwest Independent School District ("Southwest ISD") boundaries; specifically, the land identified as Bexar County Appraisal District Parcel ID 1433520 (see attached). This parcel is zoned to Sun Valley Elementary School, Scobee Middle School, and Southwest High School. Students who live at this location (Parcel ID 1433520) are entitled to attend these zoned schools.
Based on the above map, it does not appear that any students would be living within the attendance zone of Southwest ISD. This is clarified in a subsequent letter from the Southwest ISD superintendent that was included with the request. That letter states:
It has been brought to my attention that although a portion of the development site for Heritage Estates at Medina is within our boundaries, the residences are proposed to be within the Northside Independent School District ("Northside ISD"). Therefore, please let this letter serve as a withdrawal of the February 21st letter to be replaced with the following clarified language.
A portion of the proposed development site for Heritage Estates at Medina is within the Southwest ISD boundaries; specifically, a portion of the land identified as Bexar County Appraisal District Parcel ID 1433520 (see attached). While a portion of this parcel is within Southwest ISD boundaries, for the students living at the proposed development to be entitled to attend Sun Valley Elementary School, Scobee Middle School, and Southwest High School, they must reside in a residence that is located entirely within our boundaries for these zoned schools.
Based on the evidence presented within the request, it does not appear as though any residential portion of the proposed Development will be located within the attendance zone of Southwest ISD. While it is possible that the final building layout might be modified to include some Units in that attendance zone, staff’s analysis of this situation must be limited to the plans presented in the Application rather than any hypothetical future adjustments. Because of this, staff will exclude the elementary school from consideration when determining the Application’s competitiveness in any resulting ties (subject to the Applicant’s ability to appeal).
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TDHCA ID# |
25145 |
Development: |
Avenue U Villas |
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City: |
Lubbock |
Region: |
1 Urban |
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Requested By: |
Robbye Meyer |
Nature and Basis of Request:
State statute requires Applicants to notify certain elected officials and entities when submitting a pre-application for Housing Tax Credits. These officials include the presiding officer of the governing body of the county containing the development and all elected members of that body. The request suggests that two of the County Commissioners that were notified of this pre-application were no longer in office at the time that it was submitted, and that the correct elected officials were not notified.
The request also raises an issue concerning the Application’s supporting documentation for Proximity to Jobs points. This matter is addressed later in the final section of this report. In addition, the request questions the Application’s financial feasibility; however, no new information is provided, and therefore, this component of the request is not analyzed in this report.
Applicant Response to Notice of Administrative Deficiency:
An Administrative Deficiency has been issued as a result of this request that asks the Applicant to provide the Department with evidence of notifications that were issued when submitting the pre-application. The Applicant is still within the allowable period to respond to the Administrative Deficiency as of the date of the preparation of this report.
Analysis and Resolution:
Should staff determine that notifications were not properly issued when submitting the pre-application, then the Application will lose six points related to Pre-Application Participation, subject to the Application’s ability to appeal.
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TDHCA ID# |
25210 |
Development: |
Culebra Apartments |
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City: |
San Antonio |
Region: |
9 Urban |
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Requested By: |
Kenneth J. Cohen |
Nature and Basis of Request:
The QAP includes a scoring item for Input from Community Organizations, which awards points to Applications that include letters of support from community or civic organizations that serve the community in which the Development Site is located. The request suggests that this Application includes letters from organizations that do not serve the Development Site’s community.
The request also raises issues related to the Application’s zoning change letter, as well as broader issues related to the number of deficiencies within the Application. Because these matters do not present new information, they are not analyzed here.
Applicant Response to Notice of Administrative Deficiency:
An Administrative Deficiency has been issued as a result of this request that asks the Applicant to provide the Department with evidence that the community and civic organizations included in the Application serve the Development Site’s community. The Applicant is still within the allowable period to respond to the Administrative Deficiency as of the date of the preparation of this report.
Analysis and Resolution:
A determination cannot be made regarding this matter until the Applicant’s response is received and reviewed by staff. If staff determines that the Application does not meet the criteria, then the points in question will be disallowed, subject to the Applicant’s ability to appeal.
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TDHCA ID# |
25210 |
Development: |
Culebra Apartments |
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City: |
San Antonio |
Region: |
9 Urban |
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Requested By: |
Jason Arechiga |
Nature and Basis of Request:
This request suggests that the Application misrepresents the distance to the nearest library for the tie-breaker.
Applicant Response to Notice of Administrative Deficiency:
Staff determined that a Notice of Administrative Deficiency was not necessary for this request as a determination could be made without one.
Analysis and Resolution:
Should the Application be tied with other Application’s in a position that is competitive for an award of funding, staff will review the location of the library in question and make a determination at that time. If staff determines that the location of the library has been substantially misrepresented, then the library will be excluded when determining the Application’s competitiveness in any resulting ties (subject to the Applicant’s ability to appeal).
The following RFADs were received by the deadline, but did not present new, material information as required by 10 TAC §11.10(c). It is important to note that inclusion on this list does not necessarily mean that the issues raised in the RFAD are invalid or that those issues won’t be addressed during the review process.
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TDHCA ID # |
Development |
Requested By: |
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25022 |
Reserve at Kilgore |
Alyssa Carpenter |
|
25051 |
Mandalay |
Michael Tamez |
|
25053 |
Las Fuentes |
Robbye Meyer |
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25065 |
Meadow Heights |
Mario A. Trevino |
|
25070 |
6802 Marbach Lofts |
Carine Yhap |
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25071 |
Tezel Road Apartments |
Carine Yhap |
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25082 |
Villages at Orange |
Rohin Singh |
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25123 |
Oakleaf Estates |
Robbye Meyer |
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25164 |
Irving Lofts |
Justin Gregory |
|
25236 |
Casitas Los Ebanos |
Michael Beard |
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25240 |
The Magnolia |
Robbye Meyer |
One specific issue was raised among several of these RFADs that will not result in any action taken by staff. An explanation of this issue is being provided in this report for the sake of transparency.
Proximity to Jobs Documentation
To qualify for points related to Pre-Application Participation, Applicants must include documentation to substantiate points related to Proximity to Jobs in the pre-application. This documentation is submitted with the pre-application to allow competing Applicants an opportunity to make an informed decision as to whether to proceed with their own Applications. The Proximity to Jobs scoring item awards points to Applications that are in close proximity to a high number of jobs, which is determined using data published by the US Census. Applicants must use the most current data set posted by the Census by August 1, 2024, and no other year’s data may be used. Several pre-applications were submitted this year that included the wrong year of data to substantiate the Proximity to Jobs points. For those pre-applications, staff issued an Administrative Deficiency to request that the correct year of data be submitted.
Several RFADs were submitted related to this issue. Those RFADs suggested that the Applications in question should lose Pre-Application points, as the print-out from the US Census did not exist at the time that the pre-applications were submitted; however, staff disagrees with this conclusion. The definition of “Administrative Deficiency” in the QAP specifies that the following is curable through the Administrative Deficiency process:
(II) For scoring items that are predicated solely on third-party data, characteristics inherent to the proposed Development Site, or are otherwise not influenced by the actions of the Applicant, the Application's eligibility for these points can be clearly established to have existed prior to the Full Application Delivery Date (Competitive HTC) or the Application Acceptance Date (Direct Loan), and the submission of the documents does not necessitate additional changes in the Application to qualify for the points.
Staff determined that the data needed to establish the eligibility for Proximity to Jobs points objectively existed at the time the pre-applications were submitted, and therefore determined that this matter is curable as an Administrative Deficiency.