title
Presentation, discussion, and possible action on an appeal for 10112 Bissonnet Living
end
RECOMMENDED ACTION
recommendation
WHEREAS, 10112 Bissonnet Living is a 2024 9% Housing Tax Credit Application that proposes the new construction of 121 Units, 98 of which as affordable, in Houston;
WHEREAS, the Applicant provided a Resolution of Support from the City of Houston with the Application, but that Resolution did not contain necessary language for the Development to qualify for an increase in Eligible Basis;
WHEREAS, the Department conducted an underwriting analysis of the Application without this increase in Eligible Basis, which resulted in the Application being financially infeasible and therefore not eligible for an award of Housing Tax Credits;
WHEREAS, the Applicant has appealed this recommendation, and has requested that the Department accept a new Resolution that was approved by the City of Houston on June 11, 2024, and which contains the necessary language to qualify for the increase in Eligible Basis; and
WHEREAS, the Qualified Allocation Plan (QAP) specifies that Resolutions must be submitted no later than the Full Application Delivery date of March 1, 2024, and therefore the Department cannot accept the new Resolution;
NOW, therefore, it is hereby
RESOLVED, that the appeal for 10112 Bissonnet Living is hereby denied.
end
BACKGROUND
Housing Tax Credit Developments are eligible to claim tax credits annually for a period of 10 years. The amount of these credits is based on the Development's Eligible Basis, which is the total allowable cost associated with the depreciable residential rental project. Very generally, Eligible Basis includes the cost of constructing items such as the Units, amenities, and common areas, while excluding non-depreciable assets such as the land on which the Development is built. If the building is located in a HUD-designated Qualified Census Tract, Difficult Development Area, or certain other high costs areas, the el...
Click here for full text