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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 Inn Town Lofts
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RECOMMENDED ACTION
recommendation
WHEREAS, Inn Town Lofts was awarded 9% housing tax credits during the 2021 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, 2023;
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 Department lacks authority to extend federal placement-in-service deadlines and may only reset such deadlines by requiring the credits to be returned and immediately reallocated to the Development, as permitted solely under the force majeure provision of the Qualified Allocation Plan (QAP); and
WHEREAS, the Development Owner has submitted documentation demonstrating that a qualifying force majeure event has occurred;
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 approved, and that the 2021 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development.
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BACKGROUND
Development
Inn Town Lofts
Target Population
General
HTC Award
$1,453,902
City
Lubbock
Total Units
56
HTC Units
56
Initial Year of Award
2021
Extension Requested
Six months
Inn Town Lofts is a 56-unit development located in Lubbock, Lubbock County. The development received an award of 9% Housing Tax Credits in 2021 and has since been approved for force majeure treatment in 2022 and supplemental credits in 2023. As a result, the current deadline to place in service in December 31, 2025.
The Development proposes ...
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