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Presentation, discussion, and possible action regarding approval of a Multifamily Direct Loan assumption and modification for Seville Row Apartments (TCAP #13090009754)
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RECOMMENDED ACTION
recommendation
WHEREAS, in 2008, the Department awarded 4% housing tax credits (HTC #08417) to Seville Row Apartments (the Development), and in 2010, two rounds of TCAP funds were awarded, as cash flow, forgivable loans, in the amounts of $2,261,410 and $328,531, for a total of $2,589,941 under the TCAP Tax Credit Replacement Initiative, to rehabilitate 90 multifamily units for the elderly in Beaumont, Jefferson County;
WHEREAS, the TCAP loans have a maturity date of September 1, 2026, and upon maturity, as long as the borrower is not in default under any terms of the Notes or any document securing payment of the Notes, payment of the outstanding principal will be waived;
WHEREAS, prior to maturity, upon the sale of the Development or upon the refinance of any superior liens, 10% of the net sale proceeds or 10% of the refinancing proceeds would be due and payable under the Notes and applied to the outstanding principal balance;
WHEREAS, Steele Seville LLC (Proposed Owner) plans to purchase the Development from Beaumont Leased Housing Associates II, Limited Partnership (Current Owner);
WHEREAS, the Proposed Owner is requesting approval to assume the TCAP loans, and requesting that the loans be modified to extend the loans to February 16, 2052, which is 40 years from when the permanent period started for these loans, and with the payment schedule changing from semi-annual to annual; and
WHEREAS, Board approval is required for the assumption of the TCAP loan because the proposed transaction does not meet the condition in 10 TAC ?13.13(d)(2)(B) for Executive Director approval;
NOW, therefore, it is hereby
RESOLVED, that the request for the Proposed Owner to assume the TCAP loans and written agreement, and to modify the TCAP loans to change the maturity date to...
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