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Presentation, discussion, and possible action on an extension of the development period for Espero Austin at Rutland
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RECOMMENDED ACTION
recommendation
WHEREAS, Espero Austin at Rutland executed a contract for $3,000,000 in National Housing Trust Fund (NHTF) funds, effective July 9, 2021, with an allowable Development Period of up to 36 months from the loan closing date, which expires on July 21, 2024,
WHEREAS, the final construction inspection has been performed, and the corrective action period for that inspection has been extended to July 21, 2024, which is the longest allowable under the terms of the contract, and which cannot be extended without Board approval of an extension of the Development Period;
WHEREAS, the Applicant has requested to extend the Development Period to match a six-month extension from the construction lender, which would extend the Development Period to February 1, 2025, to allow time for the Development to achieve rental stabilization and convert to permanent financing;
WHEREAS, the Development has begun initial lease-up, with 73 of the Units currently reported as occupied in the Department's Compliance Monitoring Tracking System;
WHEREAS, staff is requesting approval to extend the Development Period to match the construction lender's term, which will also allow for the final construction inspection items to be addressed, and for all necessary paperwork related to project completion to be submitted to the Department; and
WHEREAS, such extension will not cause the Department to miss any federal deadlines, although it may delay the Department's ability to claim the HOME Match funds provided by the Development for one year;
NOW, therefore, it is hereby
RESOLVED, staff is approved to extend the Development Period for Espero Austin at Rutland until February 1, 2025.
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BACKGROUND
Espero Austin at Rutland received a loan of $3,000,000 for the construction of a 171-unit affordable housing development in Austin, Travis County...
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