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Presentation, discussion, and possible action on an appeal for Braniff Lofts
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RECOMMENDED ACTION
recommendation
WHEREAS, Braniff Lofts is a 2024 9% Housing Tax Credit Application that proposes the acquisition and rehabilitation of an existing building in Dallas;
WHEREAS, for existing buildings, 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, the appraisal submitted with the Application assigns no value to the existing building and attributes the site's value entirely to the land, and land is not eligible to be included in Eligible Basis;
WHEREAS, when excluding acquisition costs, the Application does not generate enough Housing Tax Credits to be financially feasible, and a Real Estate Analysis Report was published on June 27, 2024, which did not recommend the Application for an award; and
WHEREAS, the Applicant timely appealed this conclusion, which was denied by the Executive Director;
NOW, therefore, it is hereby
RESOLVED, that the appeal for Braniff Lofts is denied.
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BACKGROUND
The Department received the above-listed Application on March 1, 2024. The Application proposes the acquisition and rehabilitation of an existing building in Dallas. An appraisal was included with the Application that indicates that the building itself has no value, and instead contributes all value of the existing site to the land value. Because land value is not eligible to be included in the Eligible Basis used to determine the amount of Housing Tax Credits for which the Application is eligible, the Department's Real Estate Analysis Division limited the eligible building acquisition costs to the appraised "as-is" value of the buildings in accordance with ?11.302(e)(1)(A):
"(C) Eligible Basis on Acquisition of Buildings. Building acquisition cost included in Eligible Basis is limited to the a...
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