title
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 Pinehurst Villas
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RECOMMENDED ACTION
recommendation
WHEREAS, Pinehurst Villas was awarded 9% housing tax credits during the 2022 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, 2024;
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);
WHEREAS, the Development Owner has submitted documentation demonstrating that a qualifying force majeure event has occurred; and
WHEREAS, the Development Owner has National Housing Trust Funds that have a federal expenditure and a federal Project Completion deadline;
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 2022 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development, with a Placed in Service deadline of May 30, 2026.
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BACKGROUND
Development
Pinehurst Villas
Target Population
Elderly
HTC Award
$1,048,571
City
Pinehurst
Total Units
60
HTC Units
60
Initial Year of Award
2022
Extension Requested
Seven Months
Pinehurst Villas is a 60-unit development located in Pinehurst, Orange County. The development received an award of 9% Housing Tax Credits in ...
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