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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 multiple housing tax credit awardees from the USDA Set-Aside
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RECOMMENDED ACTION
recommendation
WHEREAS, the Department is required each year to allocate 5% of available 9% housing tax credits to Developments that receive federal financial assistance through the U.S. Department of Agriculture (USDA);
WHEREAS, Developments that received credits as part of the set-aside in 2023 and 2024 are experiencing delays in closing and commencing construction due to the shutdown of the federal government;
WHEREAS, the Development Owners have 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 Owners have submitted documentation demonstrating that a qualifying force majeure event has occurred;
NOW, therefore, it is hereby
RESOLVED, that the requests to treat the matter under the force majeure provisions of 10 TAC ?11.6(5) are approved, and that the Qualified Allocation Plan and Uniform Multifamily Rules from the initial year of award and the 2025 Program Calendar shall be applicable to the Developments.
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BACKGROUND
Developments
Brownfield Estates
Candlewood Village
Corrigan Square Apartments
Country Villa
Emerald Park Apartments
Freestone Apartments
Golden Oaks Apartments
Hereford Estates
Navasota Manor
Sherwood Arms Apartments
Spring Creek Villas
The Willows Apartments
West Family Apartments
The above-listed Developments were awarded 9% housing tax cr...
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