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Presentation, discussion, and possible action regarding approval of a Multifamily Direct Loan re-subordination for Pearland Senior Village (HOME #1001132)
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RECOMMENDED ACTION
recommendation
WHEREAS, Pearland Senior Village (Development) was submitted and approved for a 9% Housing Tax Credit (HTC) award, a Multifamily Direct Loan (MFDL) in the amount of $3,000,000 awarded from the HOME program, and a $1,800,000 loan from the TCAP program in 2009 for the construction of 126 units for the elderly in Pearland, Brazoria County;
WHEREAS, Brownstone Pearland Senior Village, Ltd. (Development Owner or Owner) is currently seeking to refinance the first lien note, which is the TCAP loan with a principal balance of $1,412,287.65, as of October 1, 2025;
WHEREAS, in conjunction with this request to make a full repayment to the TCAP loan, but as a condition to the closing, the proposed new loan in the anticipated amount of $5,000,000 requires the Department to re-subordinate the HOME loan documents but not the Land Use Restriction Agreement, and the Owner has requested approval for such re-subordination from the Department;
WHEREAS, Board approval is required for this re-subordination, as the conditions for Executive Director approval for resubordinating the HOME MFDL that are specified in 10 TAC ?13.13(c)(2) have not been fully met; and
WHEREAS, the proposed new loan does not negatively affect the financial feasibility of the Development and is being used to fully repay the TCAP loan, release a portion of the investment limited partner's capital account balance, and fund at least a $15,000 per unit rehabilitation on the Development;
NOW, therefore, it is hereby
RESOLVED, that the request for the Department to re-subordinate its HOME loan (though not the Land Use Restriction Agreement for HOME or TCAP) to a $5,000,000 senior loan is approved as presented to this meeting, subject to the proposed repayment of the TCAP loan at closing of the first lien pe...
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