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Presentation, discussion, and possible action on point penalties for 2024 9% Housing Tax Credit Applications related to the Readiness to Proceed scoring item
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RECOMMENDED ACTION
recommendation
WHEREAS, the 2024 Qualified Allocation Plan (QAP) at 10 TAC ?11.9(e)(9) established a scoring item that awards one point for Applications that certify to submitting building permits and closing on the Development Site by March 31, 2025;
WHEREAS, nine Applications selected this scoring item and failed to meet the March 31, 2025, deadline;
WHEREAS, 10 TAC ?11.9(f) permits the Board to assess penalties in future competitive rounds for failure to meet non-statutory deadlines, unless it makes a finding that the failure was beyond the reasonable control of the Applicant and could not have been reasonably anticipated;
WHEREAS, staff is recommending that one Application, Freedom's Path at Kerrville II, not be assessed a penalty due to unique circumstances related to federal site control and the critical nature of housing for homeless veterans; and
WHEREAS, staff is recommending that the remaining eight Applications be assessed a deduction of one point in the 2026 Competitive Housing Tax Credit Round;
NOW, therefore, it is hereby
RESOLVED, that the Board finds that the eight Applications listed below are hereby assessed a penalty of one point for each Application submitted by the identified Applicant or Affiliate in the 2026 Competitive Housing Tax Credit Application Round; and
FURTHER RESOLVED, that the Board finds no penalty is warranted for Freedom's Path at Kerrville II.
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BACKGROUND
The 2024 Qualified Allocation Plan (QAP) included a scoring item at 10 TAC ?11.9(e)(9) known as "Readiness to Proceed," which awarded one point to Applicants that certified to closing on the Development Site and submitting for building permits by March 31, 2025. The QAP explicitly states that the Board will not waive this deadline and that failure to meet it will result in a penalty...
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