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Presentation, discussion, and possible action on a request for return and reallocation of tax credits for The Reserves at Magnolia
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RECOMMENDED ACTION
recommendation
WHEREAS, The Reserves at Magnolia was awarded 9% housing tax credits during the 2022 Competitive Housing Tax Credit cycle;
WHEREAS, the Development was previously approved for force majeure treatment in 2023;
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, 2025;
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 2022 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development and a deadline to place in service of April 30, 2026.
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BACKGROUND
Development
The Reserves at Magnolia
Target Population
General
HTC Award
$1,313,203
City
Denton
Total Units
60
HTC Units
54
Initial Year of Award
2022
Extension Requested
Four months
The Reserves at Magnolia is a 60-unit development located in Denton, Denton County. The development received an award of 9% Housing Tax Credits in 2022 and was previously approved for force majeure treatment in 2023. As a result, the current deadline to plac...
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