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Presentation, discussion, and possible action regarding the Issuance of a Multifamily Housing Governmental Note (Fiji Lofts) Series 2026 Resolution No. 26-009 and an increase to the Housing Tax Credit amount
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RECOMMENDED ACTION
recommendation
WHEREAS, at the Board meeting of November 10, 2021, Resolution No. 22-010 was approved authorizing the issuance of a Multifamily Housing Governmental Note for Fiji Lofts, Series 2021, and a Determination Notice was issued;
WHEREAS, Fiji Lofts subsequently closed on the original bond amount of $23,849,000 on December 10, 2021;
WHEREAS, as a result of unforeseen changes in circumstances following the Board's approvals of the original Resolution and issuance of the original Bonds, including inflation and related increases in construction costs, along with an increase in the total number of units from 174 units to 204 units, the Owner has requested the Department issue additional revenue bonds or notes in one or more series for the purpose of providing additional tax-exempt bond financing for the Development as further described herein;
WHEREAS, Fiji Lofts (#21608) was induced by the Board on October 10, 2024, with a requested bond amount of $6,000,000;
WHEREAS, a Certificate of Reservation was issued in the amount of $6,000,000 on August 14, 2025, with a bond delivery deadline of February 10, 2026;
WHEREAS, a supplemental bond application for Fiji Lofts, sponsored by Sphinx Development Corporation, was submitted to the Department on August 20, 2024;
WHEREAS, the application reflects an increase to the annual housing tax credit from $2,080,856 which was the original amount reflected in the Determination Notice, to $2,884,338, which represents a 38.61% increase;
WHEREAS, 10 TAC ?10.401(d) requires approval by the Board if an increase to the amount of tax credits exceeds 120% of the amount of credit reflected in the Determination Notice;
WHEREAS, in connection with the underwriting of the supplemental bonds...
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