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Presentation, discussion, and possible action regarding a waiver of 10 TAC ?11.9(b)(2)(A) and ownership structure change for Estacado Estates (HTC #23807 / #22153)
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RECOMMENDED ACTION
recommendation
WHEREAS, Estacado Estates (Development) received a 9% Housing Tax Credit (HTC) award in 2022 and a reallocation of tax credits under Force Majeure in 2023 to construct 46 multifamily units in Amarillo, Randall County;
WHEREAS, the HTC Application for the Development received two points for agreeing to include a certified Historically Underutilized Business (HUB) in the ownership structure of the General Partner that would materially participate in the development and operation of the Development throughout the Compliance Period, and receive a combination of ownership interest in the General Partner of the Applicant, cash flow from operations, and developer fee which taken together equal at least 50% and no less than 5% for any category;
WHEREAS, for purposes of achieving a property tax exemption to improve the financial feasibility of the Development, Estacado Estates, L.P. (Applicant) is seeking to revise the ownership structure by replacing the General Partner at time of Application, JES Partnerships-Estacado, L.L.C., with Estacado Estates PRH GP, L.L.C., the sole managing member of which is the Panhandle Regional Housing Finance Corporation, and moving JES Partnerships-Estacado Estates, L.L.C. from the role of General Partner to the new role of Special Limited Partner, with no composition changes to JES Partnerships-Estacado Estates, L.L.C.;
WHEREAS, the Applicant requests approval to revise the HUB requirement for the Development to specify that the HUB must remain in the ownership structure and have an ownership interest in the Special Limited Partner in order to continue to meet the intent of 10 TAC ?11.9(b)(2)(A) to have a HUB materially participate in the Development;
WHEREAS, Board approval of a waiver is required because 10 TAC ?11.9(b)(2)(A)...
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