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Presentation, discussion, and possible action regarding an increase to the Housing Tax Credit amount for Eisenhower II (HTC #19410)
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RECOMMENDED ACTION
recommendation
WHEREAS, Eisenhower II (the Development) received a 4% Housing Tax Credit (HTC) award in 2019 to acquire and rehabilitate 66 multifamily units in El Paso, El Paso County;
WHEREAS, rehabilitation of the Development has been completed, and EP Eisenhower P3, LP (the Development Owner or Owner) requests, at cost certification, to increase the annual HTC amount from $376,008, the amount reflected in the Determination Notice, to $452,838, which represents a 20.43% increase from the amount in the Determination Notice;
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, and staff has determined that the increase is necessary for the viability of the transaction;
NOW, therefore, it is hereby
RESOLVED, that the annual housing tax credit increase to $452,838 for Eisenhower II 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
Eisenhower II received a 4% HTC award in 2019 to acquire and rehabilitate 66 multifamily units in El Paso, El Paso County. On March 14, 2019, a Determination Notice was issued with an approved annual tax credit amount of $376,008. The rehabilitation of the Development has been completed, and the residential buildings in the Deve...
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