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Presentation, discussion, and possible action on a request for return and reallocation of tax credits for Sweetwater Station
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RECOMMENDED ACTION
recommendation
WHEREAS, Sweetwater Station was awarded 9% housing tax credits during the 2021 Competitive Housing Tax Credit cycle;
WHEREAS, the Development was previously approved for force majeure treatment in 2022, 2023, and 2024;
WHEREAS, the Development Owner executed a Carryover Allocation Agreement that included certifications stating each building receiving an allocation would be placed in service by December 31, 2026;
WHEREAS, the Development Owner has requested an extension to the placement-in-service deadline under 10 TAC ?11.6(5), related to Credit Returns Resulting from Force Majeure Events;
WHEREAS, the Department lacks authority to extend federal placement-in-service deadlines and may only reset such deadlines by requiring the credits to be returned and immediately reallocated to the Development, as permitted solely under the force majeure provision of the Qualified Allocation Plan (QAP); and
WHEREAS, the Development Owner has submitted documentation demonstrating that a qualifying force majeure event has occurred;
NOW, therefore, it is hereby
RESOLVED, that the request to treat the matter under the force majeure provisions of 10 TAC ?11.6(5) is approved, and that the 2021 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development.
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BACKGROUND
Development
Sweetwater Station
Target Population
Elderly
HTC Award
$900,000
City
Sweetwater
Total Units
52
HTC Units
52
Initial Year of Award
2021
Extension Requested
One year
Sweetwater Station is a 52-unit development located in Sweetwater, Nolan County. The development received an award of 9% Housing Tax Credits in 2021, and was granted force majeure treatment in 2022, 2023, and 2024. As a result, the current deadline to place in service in December 31, 2026.
After receiving its awa...
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