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Presentation, discussion and possible action regarding a waiver of 10 TAC ?11.101(b)(1)(A)(vii) of the Qualified Allocation Plan (QAP) relating to the percentage of efficiency and/or one-bedroom units for Mesa Hills I (#25451).
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RECOMMENDED ACTION
recommendation
WHEREAS, a 4% Housing Tax Credit application for Mesa Hills I was submitted to the Department on February 5, 2025;
WHEREAS, the unit mix includes more than 35% one-bedroom units, which exceeds the threshold allowed in 10 TAC ?11.101(b)(1)(A)(vii) of the 2025 QAP, thus rendering the development ineligible;
WHEREAS, in conjunction with the 4% Housing Tax Credit application, the applicant also submitted a request to waive 10 TAC ?11.101(b)(1)(A)(vii); and
WHEREAS, staff recommends a waiver be granted pursuant to 10 TAC ?11.207 based on specific factors related to the proposed development and its associated timeline as further discussed herein;
NOW, therefore, it is hereby
RESOLVED, that a waiver of ?11.101(b)(1)(A)(vii) of the 2025 QAP relating to the allowable percentage of efficiency and/or one-bedroom units for Mesa Hills I is hereby approved.
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BACKGROUND
General Information: Mesa Hills I is to be located in El Paso, El Paso County, and proposes the new construction of 64 units that will serve the general population. The development applied for Traditional Carryforward in December 2023 and received a Carryforward Designation Certificate on January 17, 2024. The Traditional Carryforward Designation does not require any specific restrictions on rent or income and expires on December 31, 2026. According to the tax credit application submitted, 44 of the units will be income- and rent-restricted at 50% of Area Median Family Income (AMFI), and 20 units will be rent- and income-restricted at 60% of AMFI.
Waiver Request: Pursuant to ?11.101(b)(1)(A)(vii) of the QAP, "any New Construction, Reconstruction, or Adaptive Reuse Development proposing more than 35% efficiency and/or one-Bed...
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