title
Presentation, discussion, and possible action on a request for return and reallocation of tax credits under 10 TAC ?11.6(5) related to Credit Returns Resulting from Force Majeure Events for The Bryan
end
RECOMMENDED ACTION
recommendation
WHEREAS, The Bryan was awarded 9% housing tax credits during the 2024 Competitive Housing Tax Credit cycle;
WHEREAS, the Development Owner executed a Carryover Allocation Agreement that included certifications stating each building receiving an allocation would be placed in service by December 31, 2026;
WHEREAS, the Development Owner has requested an extension to the placement in service deadline under 10 TAC ?11.6(5), related to Credit Returns Resulting from Force Majeure Events;
WHEREAS, the Development is not financially feasible unless the Board approves an Application amendment presented at this meeting, which requests to reduce the number of Units by approximately 20%, which staff has recommended that the Board deny; and
WHEREAS, staff cannot recommend that the Board approve this item knowing that the Development is infeasible;
NOW, therefore, it is hereby
RESOLVED, that the request to treat the matter under the force majeure provisions of 10 TAC ?11.6(5) is denied.
end
BACKGROUND
Development
The Bryan
Target Population
Elderly
HTC Award
$2,000,000
City
Mission
Total Units
113
HTC Units
113
Initial Year of Award
2024
Extension Requested
One year
The Bryan is a 113-unit development located in Mission, Hidalgo County. The development received an award of 9% Housing Tax Credits in 2024. As a result, the current deadline to place in service is December 31, 2026.
Since receiving that award, the Development has experienced financial gaps caused by rising construction costs, declining equity rates, and rising interest rates. To address this gap, the Developer has requested to amend the Application to reduce the number of Units by approximately 20%. That amendment is scheduled to be presented at this meeting of the Go...
Click here for full text