title
Presentation, discussion, and possible action on a request for an extension of the previously approved deadline to Place in Service for Sunset Ridge
end
RECOMMENDED ACTION
recommendation
WHEREAS, Sunset Ridge was awarded 9% housing tax credits during the 2024 Competitive Housing Tax Credit cycle and then approved for force majeure treatment in 2025;
WHEREAS, as part of that approval, the Governing Board imposed a deadline of June 30, 2027, for the Development to place in service, which is six months shorter than would have been allowed federally; and
WHEREAS, the Development Owner has requested that the deadline be extended to December 31, 2027;
NOW, therefore, it is hereby
RESOLVED, that the request to extend the previously approved deadline for Sunset Ridge is approved.
end
BACKGROUND
Development
Sunset Ridge
Target Population
General
HTC Award
$868,951
City
Burnet
Total Units
36
HTC Units
36
Initial Year of Award
2024
Extension Requested
Six additional months (a six-month extension was previously approved in October 2025)
Sunset Ridge is a 36-unit development located in Burnet, Burnet County. The Development received 9% housing tax credits in 2024, and the Board approved a request to reallocate the credits with a six-month extension to place in service in 2025. As a result, the current deadline to place in service is June 30, 2027.
The project is currently on track to be completed by June 2027; however, because little cushion exists in the construction schedule, the syndicator has restructured its equity payments in a way that negatively affects the Development. The request includes a letter from Boston Financial that states it has, "restructured its equity installment payment schedule to hold back nearly all equity until the receipt of an additional six-month force majeure or the completion of construction. This holdback of equity will increase costs to the development due to increased construction loan draws and so increased constructi...
Click here for full text