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Presentation, discussion, and possible action on an appeal for Mission Road Apartments
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RECOMMENDED ACTION
recommendation
WHEREAS, Mission Road Apartments is a 2024 9% Housing Tax Credit Application;
WHEREAS, staff determined that the Application should be terminated due to the quantity and scope of Administrative Deficiencies which collectively present a Material Deficiency in accordance with 10 TAC §11.1(d)(79);
WHEREAS, the Applicant timely filed an appeal of that termination; and
WHEREAS, the Executive Director denied the appeal;
NOW, therefore, it is hereby
RESOLVED, that the appeal for Mission Road Apartments is hereby denied.
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BACKGROUND
Mission Road Apartments is a 2024 9% Housing Tax Credit Application that proposes the New Construction of 88 affordable Units in San Antonio. On June 7, 2024, the Department terminated the Application for being substantially deficient. A full review of the Application identified approximately 40 deficiencies, which included an Environmental Site Assessment that did not cover the entire development site, substantially incomplete architectural plans, and inconsistent information about the Development’s location. While the Application was terminated under the Department’s deficiency rules without addressing each of the Deficiencies, the list complete of identified Deficiencies is attached to this item for review.
“Material Deficiency” is defined in 10 TAC §11.1(d)(79), which includes the caveat that, “it is possible that multiple deficiencies that could individually be characterized as Administrative Deficiencies, when taken as a whole would create a need for substantial re‐review of the Application and as such would be characterized as constituting a Material Deficiency.” Reviewing corrective documentation would require that staff substantially re-review the application due to the wide-ranging nature of the deficiencies. 10 TAC §11.202(2)(B) establishes than an Application shall be ineligible if it has a Material Deficiency. Accordingly, the Application was terminated on June 7, 2024, subject to the Applicant’s ability to appeal.
The Applicant submitted an appeal on June 14, 2024. The appeal suggests that all the identified deficiencies are administrative in nature and should be curable. The appeal also included additional corrective documents, such as a revised Environmental Site Assessment; however, this information has not been included with this item, as Tex. Gov’t Code §2306.6715(e) prohibits the Board from reviewing any information not contained in or filed with the original Application. While many of the identified Deficiencies could be individually characterized as administrative in nature, the wide-ranging nature and quantity of them exceeds the scope of the Administrative Deficiency process. Moreover, the identified Application errors, omissions, and inconsistencies in the termination letter of June 7, 2024 (including Site Acreage, Site Location, Environmental Site Assessment, Census Tract, wholly deficient architectural plans, etc.) illustrate the volume and materiality of the deficiencies in the Application. Because of this, the appeal was denied by the Executive Director, and staff recommends the Board deny the appeal as well.