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Presentation, discussion, and possible action regarding an increase to the Housing Tax Credit amount for Twelve620 (HTC #20471)
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RECOMMENDED ACTION
recommendation
WHEREAS, Twelve620 formerly known as Northwood Apartments (the Development) received a 4% Housing Tax Credit (HTC) award in 2020 for the new construction of 288 units for the general population in Houston, Harris County;
WHEREAS, construction of the Development has been completed, and LDG Northwood, LP (the Development Owner or Owner) requests, at cost certification, to increase the annual HTC amount from $2,378,498, the amount reflected in the Determination Notice, to $2,863,348, a difference of $484,850, which represents a 20.38% increase;
WHEREAS, ?42(m)(2) of the Internal Revenue Code allows an increase of tax credits for a bond financed project when the increase is determined necessary as demonstrated through the submission of the cost certification package;
WHEREAS, 10 TAC ?10.401(d) requires approval by the Board if an increase to the amount of tax credits exceeds 120% of the amount of credit reflected in the Determination Notice; and
WHEREAS, a review of the cost certification package submitted by the Development Owner supports the need for the additional tax credits requested, and staff has determined that the increase is necessary for the viability of the transaction;
NOW, therefore, it is hereby
RESOLVED, that the housing tax credit increase for Twelve620 requested by the Development Owner 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
Twelve620 formerly known as Northwood Apartments received a 4% HTC award in 2020 for the construction of 288 units for the general population in Houston, Harris County. On July 29, 2020, a Determination Notice was issued with an approved annual tax credit amount of $2,378,498. Th...
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