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Presentation, discussion, and possible action regarding a Material Amendment to the Land Use Restriction Agreements for Villa Elaina (HTF #853338) and The Cornerstone (HTF #1000358)
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RECOMMENDED ACTION
recommendation
WHEREAS, Villa Elaina received a Housing Trust Fund (HTF) award in 2003 for the rehabilitation of 22 multifamily units, all of which are designated as low-income units, and The Cornerstone received a Housing Trust Fund award in 2004 for the construction of 30 multifamily units, of which eight units are designated as low-income units, in Austin, Travis County;
WHEREAS, Mary Lee Foundation, the prior owner for Villa Elaina and The Cornerstone (the Developments), executed a Land Use Restriction Agreement (LURA) for Villa Elaina on February 26, 2004, which was amended in 2012 to restrict 11 units for individuals and families earning no more than 30% of Area Median Income (AMI) and 11 units at no more than 60% of AMI for a term of 55 years;
WHEREAS, Mary Lee Foundation executed a LURA for The Cornerstone on February 24, 2005, to restrict four units for individuals and families earning no more than 30% AMI and four units at no more than 60% AMI for a term of 30 years;
WHEREAS, CVE Housing Corporation (Development Owner), an affiliate of Foundation Communities, Inc., acquired the Developments in 2024 for the purpose of redeveloping and reconstructing both properties on an adjacent site that was acquired by another affiliate of Foundation Communities, Inc. in 2023;
WHEREAS, Foundation Communities, Inc. has submitted a 4% Housing Tax Credit (HTC) application for the construction of The Bloom at Lamar Square (HTC #25420), which will include 58 new HTC units of which 52 units will mirror the unit mix and income restrictions at Villa Elaina and The Cornerstone;
WHEREAS, the Development Owner requests approval to amend and transfer the LURAs for Villa Elaina and The Cornerstone to The Bloom at Lamar Square (the New Development);
WHEREAS, th...
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