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Presentation, discussion, and possible action regarding a waiver and extension of the 10% Test submission deadline in 10 TAC ?10.401(a) and 10 TAC ?11.2(a) for 3300 Caroline Street (HTC #20114/21711/22802)
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RECOMMENDED ACTION
recommendation
WHEREAS, 3300 Caroline Street (Development) received a 9% Housing Tax Credit (HTC) award in 2020 out of the nonprofit set-aside, and was approved for reallocations of credits under Force Majeure in 2021 (HTC #21711) and in 2022 (HTC #22802), for the construction of 149 multifamily supportive housing units, designated to assist previously homeless persons in Houston, Harris County;
WHEREAS, after the approval of the second Force Majeure, the Development was reissued a Carryover Allocation Agreement on July 8, 2022, that specifies that the 10% Test requirements identified in ?11.2(a) of the 2022 Qualified Allocation Plan (QAP) and in ?10.401(a) of the Post Award and Asset Management Requirements (AM Rules) must be met by July 1, 2023, or such later date as is specifically granted by the Department pursuant to a written extension;
WHEREAS, pursuant to ?42(h)(1)(E)(ii) of the Internal Revenue Code (Code), the Owner's basis in the Development as of the date which is one year after the date that the allocation was made must be more than 10% of the Owner's reasonably expected basis in the Development;
WHEREAS, Magnificat Permanent Affordable, LLC (Development Owner or Owner) submitted documentation to the Department on May 28, 2024, confirming that the Owner met the 10% expenditure threshold required by the Code by June 30, 2023, but the Owner did not meet the July 1, 2023, submission deadline requirements specified in the 2022 QAP and AM Rules;
WHEREAS, the Owner now requests approval for a waiver of the 10% Test Documentation Delivery Date specified in the 2022 QAP and AM Rules and to extend the submission deadline from July 1, 2023, to May 28, 2024;
WHEREAS, ?11.9(f) of the QAP states that, for failure to mee...
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