title
Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application for 305 E Round Grove Living (HTC #23007)
end
RECOMMENDED ACTION
recommendation
WHEREAS, 305 E Round Grove Living (the Development) received a 9% Housing Tax Credit (HTC) award in 2023 for the new construction of 90 units, 57 of which are designated as low-income units, in Lewisville, Denton County;
WHEREAS, due to the need to fill a funding gap, which is expected to be filled by obtaining Multifamily Direct Loan (MFDL) funding from the Department and fee waivers from the City of Lewisville through an Economic Incentive Agreement, 305 E Round Grove Living, Ltd. (the Applicant) requests approval to change the Qualified Low Income Housing Development Election from Average Income to the set-aside requirement that specifies that at least 40% or more of the residential units must be both rent restricted and occupied by individuals whose income is 60% or less of the median gross income (i.e., 40% at 60% minimum set-aside election);
WHEREAS, one of the major factors in the City of Lewisville granting this incentive to the Development is the number of market units (36.7% of total units) being provided to the community, but per 10 TAC ?13.3(d)(2)(a), if average income is elected, no more than 15% of total units can be designated market rate and still remain eligible for MFDL funds;
WHEREAS, with a change to the 40% at 60% set-aside, the number of market rate units can remain the same, and the Development can be eligible for MFDL funds and receive the fee waivers from the City of Lewisville;
WHEREAS, Board approval is required for a request to implement a revised election under ?42(g) of the Code prior to filing of IRS Form(s) 8609 as directed by 10 TAC ?10.405(a)(4)(G), and the Applicant has complied with the amendment requirements under 10 TAC ?10.405(a); and
WHEREAS, the requested change does not negatively affect the Development, imp...
Click here for full text