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Presentation, discussion, and possible action regarding an appeal of the underwriting report for Azle Oaks Apartments
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RECOMMENDED ACTION
recommendation
WHEREAS, Azle Oaks Apartments is a 2025 competitive 9% Housing Tax Credit Application that requests $2,000,000 in Housing Tax Credits to Rehabilitate 116 Units in Azle;
WHEREAS, the Department's Real Estate Analysis Division reviewed the Application and published an underwriting report that reduced the recommended a credit allocation to $1,999,705 for the reasons outlined below;
WHEREAS, the Applicant timely appealed this determination to the Executive Director, who denied the appeal; and
WHEREAS, the Applicant has requested to appeal directly to the Governing Board.
NOW, therefore, it is hereby
RESOLVED, that the appeal of the underwriting report for Azle Oaks Apartments is denied.
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BACKGROUND
Azle Oaks Apartments is a 2025 competitive 9% Housing Tax Credit Application that requests $2,000,000 in Housing Tax Credits to Rehabilitate 116 Units in Azle.
One federally allowable use of the Low Income Housing Tax Credit is the acquisition and rehabilitation of existing housing. In such a transaction, the credits for the acquisition of the buildings and the credits for the rehabilitation of those buildings are treated separately, although the Department underwrites and allocates the credits as a single transaction. To help illustrate this, please see the following excerpt from the underwriting report for this transaction (the full report is attached to this item):
The total Eligible Basis for the Acquisition of the buildings is separate from the Rehabilitation, as is federally required. After calculating the eligible credit amounts for both activities, the Department combines them into a single recommended credit amount which is presented to the Board for final approval. The Owner then claims these two credits separately with the Internal Revenue Service.
The Eligible Basis is the portion ...
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