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Presentation, discussion, and possible action regarding an extension of the development period and a waiver of 10 TAC ?13.11(m) for Grim Hotel
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RECOMMENDED ACTION
recommendation
WHEREAS, Grim Hotel executed a contract for $4,000,000 in Neighborhood Stabilization Program (NSP) funds on October 25, 2019;
WHEREAS, that contract allowed for a Development Period of up to 30 months from the loan closing date, which expired on August 23, 2023;
WHEREAS, 10 TAC ?13.11(m) of the rules under which the Application was awarded require the termination of the award and repayment of all funds for any Development that is not completed within four years of the effective date of the contract;
WHEREAS, the Owner anticipates that construction will be completed by August 31, 2024, and has requested an extension of the local-issuer bonds for the Development to April 27, 2025;
WHEREAS, Board approval is necessary to extend the Development Period to April 27, 2025, and to waive 10 TAC ?13.11(m) related to the requirement that the award be terminated;
NOW, therefore, it is hereby
RESOLVED, that the extension of the Development Period and waiver of 10 TAC ?13.11(m) for Grim Hotel is hereby approved.
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BACKGROUND
Grim Hotel received a loan of $4,000,000 in NSP funding in 2019 for the conversion of an existing hotel in Texarkana to 93 Units of affordable housing. The loan is fully repayable at 2.00% interest. The Development has experienced an extended construction timeline, and construction is currently scheduled to be complete in August 2024, after which, the Department will conduct a Final Construction Inspection.
The contract for these funds was executed on October 25, 2019, and the 10 TAC ?13.11(m) of the rules under which the Application was awarded require that, "termination of the Direct Loan award and repayment of all disbursed funds will be required for any Development that is not completed within four years of the effective date of a Direct Loan Contract." ...
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