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Presentation, discussion, and possible action regarding a waiver and extension of the 10% Test submission deadline in 10 TAC ?10.401(a) and 10 TAC ?11.2(a) for Cypress Creek Apartment Homes at Montfort Drive (HTC #22110/23806/24802)
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RECOMMENDED ACTION
recommendation
WHEREAS, Cypress Creek Apartment Homes at Montfort Drive (Development) received a 9% Housing Tax Credit (HTC) award in 2022 for the construction of 168 units, in Dallas, Dallas County, and was approved for reallocations of credits under Force Majeure in 2023 (HTC #23806) and in 2024 (HTC #24802);
WHEREAS, after the approval of the second Force Majeure, the Development was reissued a Carryover Allocation Agreement on June 11, 2024, that specifies that the 10% Test requirements identified in ?11.2(a) of the 2024 Qualified Allocation Plan (QAP) and in ?10.401(a) of the Post Award and Asset Management Requirements (AM Rules) must be met by July 1, 2025, or such later date as is specifically granted by the Department pursuant to a written extension;
WHEREAS, pursuant to ?42(h)(1)(E)(ii) of the Internal Revenue Code (Code), the Owner's basis in the Development as of the date which is one year after the date that the allocation was made must be more than 10% of the Owner's reasonably expected basis in the Development;
WHEREAS, Cypress Creek Montfort Drive LP (Development Owner or Owner) submitted documentation to the Department on April 28, 2026, confirming that the Owner met the 10% expenditure threshold required by the Code by June 28, 2024, but the Owner did not meet the July 1, 2025, submission deadline requirements specified in the 2024 QAP and AM Rules;
WHEREAS, the Owner now requests approval for a waiver of the 10% Test Documentation Delivery Date specified in the 2024 QAP and AM Rules and to extend the submission deadline from July 1, 2025, to April 28, 2026;
WHEREAS, ?11.9(f) of the QAP states that, for failure to meet a 10% Test deadline, staff may recommend that an Applicant...
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