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Presentation, discussion, and possible action on an appeal for Solano Apartments (#24457)
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RECOMMENDED ACTION
recommendation
WHEREAS, Solano Apartments is a 4% Housing Tax Credit (HTC) Application that proposes the acquisition and rehabilitation of an existing multifamily property in Webster;
WHEREAS, for existing properties, an Appraisal must be submitted to substantiate the value of the buildings to be included in the Development's Eligible Basis, which is used to determine the amount of credits for which the Application is eligible;
WHEREAS, an Appraisal was submitted that attributed an "as-is" value to the underlying land, as if vacant, and an estimated "as-is" market value of the buildings and pursuant to 10 TAC ?11.302(e)(1)(A)(ii) staff underwrote using such values;
WHEREAS, the Department posted an underwriting report recommending an annual tax credit allocation that was $188,472 below the amount requested by the Applicant; and
WHEREAS, the Applicant timely appealed this conclusion, contending that the Department should have underwritten assuming the hypothetical market value "As-Is Assuming Real Estate Tax Exemption" reflected in the Appraisal, which was denied by the Executive Director;
NOW, therefore, it is hereby
RESOLVED, that the appeal for Solano Apartments is hereby denied.
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BACKGROUND
Solano Apartments is an existing market rate property located at 535 W NASA Parkway, in Webster, Harris County. The 4% HTC application was submitted on February 26, 2024, and a Certificate of Reservation was subsequently issued for the development, with a bond closing deadline of August 24, 2024.
On June 21, 2024, the Department posted the underwriting report, recommending an annual tax credit allocation of $1,958,388, as determined by eligible basis. This amount is $188,472 below the annual amount requested by the Applicant of $2,173,860.
This transaction is considered an identity of interest. Kent Piotrkowski is the authori...
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