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Presentation, discussion, and possible action on a loan request and 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 930 Military Parkway
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RECOMMENDED ACTION
recommendation
WHEREAS, the above listed development was awarded 9% housing tax credits during the 2024 competitive Application round;
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 Developer applied for additional funds under the Department's 2025-1 National Housing Trust Fund (NHTF) Notice of Funding Availability;
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 Department is now recommending approval of a loan in the amount of $4,000,000, with proposed loan terms and details concerning the Development's financials outlined below;
NOW, therefore, it is hereby
RESOLVED, that the that loan of $4,000,000 of NHTF to 930 Military Parkway is approved, subject to conditions that may be applicable as found in the Real Estate Analysis Underwriting Report attached to this Board Action Request, any HUD required environmental conditions, and the conditions as outlined herein; and
FURTHER RESOLVED, that the request to treat the matter under the force majeure provisions of 10 T...
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