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Presentation, discussion, and possible action on amendment to the loan terms and waivers of 10 TAC Chapter 13 for Rio Manor (22204)
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RECOMMENDED ACTION
recommendation
WHEREAS, the Board has previously approved a HOME loan of $1,257,000 to Rio Manor, which proposes the reconstruction of 60 affordable units in Del Rio, Val Verde County;
WHEREAS, the Development also includes financing from the U.S. Department of Housing and Urban Affairs (HUD), which is scheduled to close by December 12, 2023, and in order to meet this deadline, the Owner has made a sponsor loan to the Development which will be repayable with the Department's HOME funds when that loan closes;
WHEREAS, due to the layering of HUD funding, the Housing Tax Credit funding, and the Department's HOME funds, a modification of the initially proposed 22 HOME units is required, and staff recommends approval of this modification only to the extent necessary to maintain feasibility and only in a manner that would not have impacted the Application's original competitiveness; and
WHEREAS, proceeding with the sponsor loan and modification of the number of HOME units requires Board approval of a waiver of 10 TAC ?13.3(e)(15) and loan term amendments, as further detailed below;
NOW, therefore, it is hereby
RESOLVED, that the waiver of 10 TAC ?13.3(e)(15) and the modification of the loan terms for Rio Manor is hereby approved, conditioned on the requirement that the Applicant may not draw down or expend any of the funds from the sponsor loan prior to the closing of the HOME loan.
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BACKGROUND
Rio Manor was previously approved for $1,450,000 in annual Housing Tax Credit funding and $1,257,000 in HOME funds structured as a repayable loan at 0.5% interest. The Development also includes funding from HUD, which is scheduled to close on December 12, 2023. While the Department anticipates contracting and closing the HOME loan in the near future, it is not possible to close concurrently with the HUD loan. ...
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