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Presentation, discussion, and possible action regarding approval of a Multifamily Direct Loan re-subordination for Residence at Ridgehill (NHTF #82900021520)
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RECOMMENDED ACTION
recommendation
WHEREAS, Residence at Ridgehill (Development) was submitted and approved for a Multifamily Direct Loan (MFDL) in the amount of $492,558 awarded from the National Housing Trust Fund (NHTF) program in 2022 and was also awarded 9% Housing Tax Credits (HTCs) and Supplemental Credits in 2020 and 2022 (HTC #20186/22977), respectively, for the new construction of 43 units for the elderly in Kerrville, Kerr County;
WHEREAS, OPG Ridgehill Partners, LLC (Development Owner or Owner) is currently seeking to convert the Development's construction loan to a permanent first lien funded by a conventional loan with a proposed increase of $200,000 to the senior debt amount, going from $1,770,770 to $1,970,770;
WHEREAS, as a condition to the closing, the conventional loan requires the Department to re-subordinate the NHTF loan documents but not the Land Use Restriction Agreement, and the Owner has requested approval for such re-subordination from the Department and is proposing in conjunction with this request to make a repayment to the NHTF loan in the amount of $9,000;
WHEREAS, Board approval is required for this re-subordination, as the conditions for Executive Director approval for resubordinating the MFDL that are specified in 10 TAC ?13.13(c)(2) have not been fully met; and
WHEREAS, the proposed increased loan amount does not negatively affect the financial feasibility of the Development and is being used to fund increased costs due to construction delays due to excessive rainfall and additional drainage work done to ensure long term functionality and compliance with drainage standards;
NOW, therefore, it is hereby
RESOLVED, that the request for the Department to re-subordinate its MFDL (though not its Land Use Restriction Agreements) to a $1,970,770 senior loan...
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