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Presentation, discussion, and possible action on a request for return and reallocation of tax credits for The Residence at Red Cedar
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RECOMMENDED ACTION
recommendation
WHEREAS, The Residence at Red Cedar was awarded 9% housing tax credits during the 2024 Competitive Housing Tax Credit cycle;
WHEREAS, the Development Owner executed a Carryover Allocation Agreement that included certifications stating each building receiving an allocation would be placed in service by December 31, 2026;
WHEREAS, the Development Owner has requested an extension to the placement in service deadline under 10 TAC ?11.6(5), related to Credit Returns Resulting from Force Majeure Events;
WHEREAS, the Department lacks authority to extend federal placement in service deadlines and may only reset such deadlines by requiring the credits to be returned and immediately reallocated to the Development, as permitted solely under the force majeure provision of the Qualified Allocation Plan (QAP); and
WHEREAS, the Development Owner has submitted documentation demonstrating that a qualifying force majeure event has occurred;
NOW, therefore, it is hereby
RESOLVED, that the request to treat the matter under the force majeure provisions of 10 TAC ?11.6(5) is approved, and that the 2024 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development.
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BACKGROUND
Development
The Residence at Red Cedar
Target Population
Elderly
HTC Award
$802,916
City
Corsicana
Total Units
32
HTC Units
32
Initial Year of Award
2024
Extension Requested
One year
The Residence at Red Cedar is a 32-unit development located in Corsicana, Navarro County. The development received an award of 9% Housing Tax Credits in 2024. As a result, the current deadline to place in service in December 31, 2026.
After receiving its award, the Developer discovered that the municipal water line closest to the site was nonfunctioning, leaving the Development with no read...
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