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Presentation, discussion, and possible action regarding an increase to the Housing Tax Credit amount for Bridge at Loyola (HTC #19418)
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RECOMMENDED ACTION
recommendation
WHEREAS, Bridge at Loyola (the Development) received a 4% Housing Tax Credit (HTC) award in 2019 and a Tax Credit Assistance Program (TCAP) loan for the construction of 204 units, of which 200 are low-income units, for the general population in Austin, Travis County;
WHEREAS, construction of the Development has been completed, and Bridge at Loyola Lofts, LP (the Development Owner or Owner) requests, at cost certification, to increase the annual HTC amount from $1,475,411, the amount reflected in the Determination Notice, to $1,882,292, which was adjusted to $1,874,395 in the Department's analysis, and the adjusted amount represents an increase of 27.04% ($398,984) from the amount in the Determination Notice;
WHEREAS, ?42(m)(2) of the Internal Revenue Code allows an increase of tax credits for a bond financed project when the increase is determined necessary as demonstrated through the submission of the cost certification package;
WHEREAS, 10 TAC ?10.401(d) requires approval by the Board if an increase to the amount of tax credits exceeds 120% of the amount of credit reflected in the Determination Notice; and
WHEREAS, a review of the cost certification package submitted by the Development Owner supports the need for the additional tax credits, and staff has determined that the increase is necessary for the viability of the transaction;
NOW, therefore, it is hereby
RESOLVED, that the housing tax credit increase for Bridge at Loyola to $1,874,395 annually is approved as presented to this meeting, and the Executive Director and his designees are each authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
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BACKGROUND
Bridge at Loyola received a 4% HTC award in 2019 and a TCAP loan for new construction of 204 units, of which 200 are low...
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