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Presentation, discussion, and possible action on a request for return and reallocation of tax credits under 10 TAC ?11.6(5) related to Credit Returns Resulting from Force Majeure Events for Vista at Silver Oaks
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RECOMMENDED ACTION
recommendation
WHEREAS, the above listed development was awarded 9% housing tax credits during the 2022 competitive Application round;
WHEREAS, staff executed a Carryover Allocation Agreement with the Development Owner, which included certifications from the Development Owner that each building for which the allocation was made would be placed in service by December 31, 2024;
WHEREAS, the Department received a request from the Development Owner to extend the placement-in-service deadline under the provisions of 10 TAC ?11.6(5) related to Credit Returns Resulting from Force Majeure Events;
WHEREAS, other than in situations covered by force majeure, the Department lacks authority to extend federal deadlines for placement in service; and
WHEREAS, the Development Owner has presented evidence that relief under force majeure is appropriate.
NOW, therefore, it is hereby
RESOLVED, the requests for treatment under an application of the force majeure rule are approved, with the 2022 Qualified Allocation Plan and Uniform Multifamily Rules, and the 2024 Program Calendar applicable to the Development except the placed-in-service deadline, which shall be March 31, 2025.
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BACKGROUND
An award of Competitive (9%) Housing Tax Credits was approved by the Board for the above-listed development in 2022. Staff executed a Carryover Allocation Agreement with the Development Owner which included a certification from the Development Owner that documentation for the 10% Test would be submitted by a set date, and, in order to satisfy the requirements of ?42 of the Internal Revenue Code, each building for which the allocations were made would be placed in service by December 31, 2024. The Department received a request from the Development...
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