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Presentation, discussion, and possible action regarding a waiver of 10 TAC §11.101(b)(4)(D) for Oaklawn Place (HTC #21136/22821/23935)
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RECOMMENDED ACTION
recommendation
WHEREAS, Oaklawn Place (the Development) received a 9% Housing Tax Credit (HTC) award in 2021, a reallocation of credits under Force Majeure in 2022, and Supplemental Credits in 2023 for the new construction of 84 low-income units for the elderly in Dallas, Dallas County;
WHEREAS, Sadler Circle Senior Apartments, LLC (the Development Owner or Owner) is requesting a waiver for 10 TAC §11.101(b)(4)(D), which is the requirement for screens on all operable windows as a Mandatory Development Amenity, as 117 out of 240 windows in the Development do not meet this requirement; and
WHEREAS, the requested waiver does not negatively affect the Development, impact the viability of the transaction, impact Tex. Gov't Code §§2306.001, 2306.002, 2306.359, and 2306.6701, or affect the amount of the tax credits awarded;
NOW, therefore, it is hereby
RESOLVED, that the waiver request for Oaklawn Place is approved as presented to 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
Oaklawn Place received a 9% Housing Tax Credit award in 2021, a reallocation of credits under Force Majeure in 2022 (HTC #22821), and Supplemental Credits in 2023 (HTC #23935) for the new construction of 84 low-income units for the elderly in Dallas, Dallas County. All of the units in the Development are in a five-story building. Construction of the Development is nearing completion, and the Owner anticipates submitting the cost certification documentation to the Department in the next few months.
In a letter as of June 6, 2024, Jennifer Hicks, the consultant to the Owner, requested a waiver of 10 TAC §11.101(b)(4)(D), which requires screens on all operable windows as a mandatory amenity for new construction developments. The Development was originally designed with fixed full-height window walls, which were not operable, and as a result, did not require screens. After the initial Application, the design and construction was changed to provide operable windows for the units. Since the building design had already been accepted by the local design review board with full-height window walls, the storefront window system selected for the design limited the options for specifying an opening window. The storefront window system was selected based upon its performance characteristics (solar performance, weather-tightness, warranty, durability, and appearance) and compatibility with the brick veneer designed for the project. The requirements were set by the storefront system manufacturer that was specified for the entire project’s window systems and to meet City of Dallas Energy Code. However, outward swinging windows were the only option available with the selected window system, and the design of the installed operable windows does not allow for the provision of a screen. The hardware for opening the window consists of lever hinge handles located on the inside of the window. The window pushes out, so it is an impossibility to install a screen that would allow the window to be opened and have the screen be functional. The window glides have limiters installed that prevent the possibility of an accidental fall. Information submitted by the Owner’s consultant indicates that 117 windows out of 240 total windows in the Development are operable, but do not meet the requirement for screens. The balance of the windows in the Development are sealed, and therefore, the requirement does not apply as they are non-operable. The Owner requests a waiver of 10 TAC §11.101(b)(4)(D) due to the fact that the building currently has all windows installed, and the windows are located in structural walls in which the reframing of the window openings for the creation of a new window system is not practicable at this point. This would cause a substantial delay in the completion of construction for the Development which is already pre-leasing and is anticipated to receive a certificate of occupancy in July.
The waiver request letter identifies upgrades and features of the Development that could be mitigating factors for this waiver. The Owner representative indicated that the building is equipped with a fire-sprinkler system throughout and fully air-conditioned with individual thermostatic controls for each residential unit. Unit bathrooms and unit kitchens are equipped with controllable exhaust/vent fans. Also, in addition to providing all other mandatory development amenities, the Development is anticipated to achieve 19 points for Common Amenities, exceeding the 10 points required, and anticipated to achieve 13 points for Unit Requirement points, exceeding the 9 points required.
The need for the waiver was not foreseeable and was not preventable by the Owner given the need to continue construction of the Development. The Owner indicated that the waiver also serves the policies and purposes articulated in Tex. Gov’t Code §§2306.001, 2306.002, 2306.359 and 2306.6701 than not granting the waiver, as the Development is a high-quality affordable housing development located in a high-demand area of urban Dallas with excellent access to services, amenities, and transportation.
Staff recommends approval of the waiver request as presented herein.