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Presentation, discussion, and possible action to issue a list of approved Applications for 2024 Housing Tax Credits (HTC) in accordance with Tex. Gov’t Code §2306.6724(e)
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RECOMMENDED ACTION
recommendation
WHEREAS, in accordance with Tex. Gov’t Code §2306.6724(e), the Board shall review the recommendations of Department staff regarding applications and shall issue a list of approved applications each year in accordance with the Qualified Allocation Plan (QAP) not later than June 30;
WHEREAS, not all applications on the approved list have completed the review process in accordance with the QAP, not all applicants’ appeal rights have concluded, and not all applications will ultimately receive an award of housing tax credits;
WHEREAS, the list, as orally revised to reflect the determinations by the Board of any appeals or other actions taken at this Board meeting of June 13, 2024, constitutes the complete list of approved applications that may therefore be eligible for commitments of allocations of housing tax credits in this competitive cycle; and
WHEREAS, a list reflecting such Board determinations from the meeting of June 13, 2024, will be issued not later than June 14, 2024.
NOW, therefore, it is hereby
RESOLVED, the attached list of active applications for the 2024 Competitive HTC application round, as orally modified to reflect actions taken at this Board meeting, is approved in accordance with Tex. Gov't Code §2306.6724(e), subject to meeting the requirements of the Qualified Allocation Plan (QAP) and associated applicable rules.
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BACKGROUND
The Department’s Board is required by Tex. Gov't Code §2306.6724(e) to “review the recommendations of department staff regarding applications and shall issue a list of approved applications each year in accordance with the qualified allocation plan not later than June 30.” Moreover, as required by Tex. Gov't Code §2306.6724(f), the Board “shall issue final commitments for allocations of housing tax credits each year in accordance with the qualified allocation plan not later than July 31.” At the Board meeting of July 25, 2024, the list presented to the Board will clearly identify those applications being recommended for a Commitment.
This is the “list of approved applications” required by Tex. Gov’t Code §2306.6724(e). They are approved in the sense that they have not yet been identified as having any material deficiency or other defect that would cause them to be ineligible, or if such matters have been identified they are still within the period where such matters may be appealed. As provided by 10 TAC §11.6(3) of the QAP, Award Recommendation Methodology, the Department will not perform a detailed review of all applications; it reviews priority applications that are most likely to be competitive. Priority applications are identified based on self-score, a limited preliminary review, and other relevant factors, such as outcome of awards based on collapses. As staff continues the review process, applications remain subject to the identification of material and/or administrative deficiencies, revised scoring, and/or applications may be found to be ineligible or to involve ineligible applicants.
At this time, applications may remain subject to underwriting, completion of any remaining program review, and a previous participation review, including the opportunity to pursue the appeal process, where applicable. Further, the credit amount reflected on this list is the requested credit amount and may change to reflect a recommended credit amount and/or may have conditions placed on the award in July, if recommended for an award. Information about completed underwriting reviews may be found at the Real Estate Analysis webpage http://www.tdhca.state.tx.us/rea/reports-9-percent.htm. In addition to applications that may be removed from the list for issues of financial feasibility, applications may also be removed from the list of approved applications as determinations are made on appeals, as applications make determinations regarding the credit award limit of $6 million (in accordance with §11.4 of the QAP), or as the Board determines under operation of rule or law.
Staff recommends the Board approve the attached list of active applications for the 2024 competitive HTC application round, as orally modified to reflect Board determinations on any related actions taken at this meeting.