title
Presentation, discussion, and possible action regarding a material amendment to the Housing Tax Credit Application for Azalea Trails (HTC #22312)
end
RECOMMENDED ACTION
recommendation
WHEREAS, Azalea Trails (the Development) received a 9% Housing Tax Credit (HTC) award in 2022 for the acquisition and rehabilitation of 72 multifamily units in Atlanta, Cass County;
WHEREAS, Azalea Trails Apartments, LP (the Development Owner or Owner) is requesting approval for a 5.38% increase in the residential density as a result of a reduction in site acreage, from 7.891 acres to 7.488 acres, due to a discrepancy between the lot sizes noted between the appraisal reports and an updated ALTA survey;
WHEREAS, Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F), and the Owner has complied with the amendment requirements therein; and
WHEREAS, the requested change does not materially alter the Development in a negative manner, affect the HTC recommendation, and would not have adversely affected the selection of the Application;
NOW, therefore, it is hereby
RESOLVED, that the requested material amendment to the Application for Azalea Trails is approved as presented to this meeting, and the Executive Director and his designees are hereby, authorized, empowered, and directed to take all necessary action to effectuate the foregoing.
end
BACKGROUND
Azalea Trails formerly known as Country Place Apartments received a 9% HTC award in 2022 for the acquisition and rehabilitation of 72 multifamily units in Atlanta, Cass County. At Application, the Development was legally four separate entities that would consolidate into one entity and continue to be operated and managed as one property with 7.891 acres. Country Place I and II (4.622 acres) were built in 1980 and consist of 36 two-bedroom units. Country Place III and Country Place IV (3.269 acres) were built in 1981 and consist of 36 two-bedroom units. In a letter dated November 6, 2023, Meredith, representative for the Owner, requested approval for a change in the acreage and residential density noted in the original Application.
At Application the Development site was listed at 7.891 acres based upon the appraisal’s use of the Development’s legal descriptions. The Owner indicated that, while a new survey was not required with the Application, as this site is a rural USDA property, the old records were inaccurate. Once the appraiser, Gill Group, was provided with an updated survey, they realized the acreage was incorrect and should have been 7.488 acres. Country Place II’s lot size was not subtracted from Phase I’s tract nor was the easement included. The Owner also stated the site plan has not changed from what was represented at Application, and there is no financial impact to the Development. This request is a correction of the miscalculation of the acreage based on older legal descriptions. This change in acreage from 7.891 acres to 7.488 acres will increase the residential density of the Development by 5.38%, from 9.124 units per acre to 9.615 units per acre. Board approval is required for a modification of the residential density of at least 5% as directed in Tex. Gov’t Code §2306.6712(d)(6) and 10 TAC §10.405(a)(4)(F).
Staff has reviewed the original Application against this amendment request and has concluded that the changes described above would not have affected the award. The final recommended credit amount will be determined at cost certification. It should be noted that this is a USDA transaction, and therefore, this will not affect the acquisition price because it will be based on the balance of the loan assumed.
Staff recommends approval of the amendment request presented herein.