title
Presentation, discussion, and possible action regarding an increase to the Housing Tax Credit amount for The Element (HTC #21456)
end
RECOMMENDED ACTION
recommendation
WHEREAS, The Element formerly known as Residences at Howard Lane (the Development) received a 4% Housing Tax Credit (HTC) award in 2021 for the new construction of 300 units for the general population in Austin, Travis County;
WHEREAS, construction of the Development has been completed, and The Residences at Howard Lane Ltd. (the Development Owner or Owner) requests, at cost certification, to increase the annual HTC amount from $1,912,595, the amount reflected in the Determination Notice, to $2,430,538, a difference of $517,943, which represents a 27.08% increase;
WHEREAS, the Department's analysis indicates that an annual HTC amount of $2,427,791 is supported, and this amount is $515,196 (26.94%) greater than the amount in the Determination Notice;
WHEREAS, ?42(m)(2) of the Internal Revenue Code allows an increase of tax credits for a bond financed project when the increase is determined necessary as demonstrated through the submission of the cost certification package;
WHEREAS, 10 TAC ?10.401(d) requires approval by the Board if an increase to the amount of tax credits exceeds 120% of the amount of credit reflected in the Determination Notice; and
WHEREAS, a review of the cost certification package submitted by the Development Owner supports the need for the additional tax credits as adjusted, and staff has determined that the increase is necessary for the viability of the transaction;
NOW, therefore, it is hereby
RESOLVED, that the 26.94% increase to the housing tax credit amount for The Element is approved as presented to this meeting, and the Executive Director and his designees are each authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
end
BACKGROUND
The Element formerly known as Residences at Howard Lane received a 4% HTC awar...
Click here for full text