title
Presentation, discussion, and possible action on a request for return and reallocation of tax credits under 10 TAC ?11.6(5) related to Credit Returns Resulting from Force Majeure Events for Red Oaks
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RECOMMENDED ACTION
recommendation
WHEREAS, Red Oaks (the Development) received an award of 9% Housing Tax Credits (HTCs) in 2022 to construction 70 units of multifamily housing in Austin, Travis County;
WHEREAS, in 2023, the Board approved a request for the credits to be returned and reallocated due to Force Majeure Events;
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, 2025;
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 2022 Qualified Allocation Plan, Uniform Multifamily Rules, and the 2025 Program Calendar shall be applicable to the Development, with a new deadline to place in service of June 30, 2026.
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BACKGROUND
Development
Red Oaks
Target Population
General
HTC Award
$1,600,000
City
Austin
Total Units
70
HTC Units
70
Initial Year of Award
2022
Extension Requested
Six months
Red Oaks is a 70-unit development located in Austin, Williamson County. The development received an award of 9% Housin...
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