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Presentation, discussion, and possible action regarding a request for a Multifamily Direct Loan assumption, modification, and re-subordination for Timbers Edge Apartments (TCAP #13090009753)
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RECOMMENDED ACTION
recommendation
WHEREAS, in 2008, the Texas Department of Housing and Community Affairs (the Department) awarded housing tax credits (HTC #08416) to Timbers Edge Apartments (the Development), and in 2010, two rounds of Tax Credit Assistance Program (TCAP) funds were awarded, as cash flow, forgivable loans, in the amounts of $3,409,016 and $618,990, for a total of $4,028,006 under the TCAP Tax Credit Replacement Initiative for the acquisition and rehabilitation of 150 multifamily units in Beaumont, Jefferson County;
WHEREAS, on May 11, 2023, the Board approved the request by Beaumont Timbers Edge, LP (Current Owner) to assume the TCAP loans, to re-subordinate the TCAP loans to new debt, and the modification of the TCAP loans from forgivable to non-forgivable, with the payment schedule changing from semi-annual to a balloon payment at maturity on September 1, 2026 with the intention to subsequently re-syndicate the Development using 4% Housing Tax Credits (HTCs), tax exempt bonds, and other resources;
WHEREAS, Beaumont Timbers Edge I, LP (Applicant), an affiliate of the Current Owner, received a reservation for bonds to be issued by a local issuer, allowing for the submission of a 4% HTC application (HTC #26423/25452) to the Department;
WHEREAS, the Applicant is requesting approval to assume the TCAP loans and requesting that the loans be modified to extend the maturity from September 1, 2026, to no later than February 16, 2052, which is 40 years from when the permanent period started for these loans, to include annual cash flow payments with a balloon payment for the balance due at maturity with a proposed paydown of $50,000 at closing;
WHEREAS, as part of this assumption and modification, the TCAP loans will be resubordinated to the new ...
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