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Presentation, discussion, and possible action on an Agreed Final Order concerning Cherrywood Apartments (HOME 1001216 / HTC Exchange 1509009999 / CMTS 4617) and Southwood Apartments (HOME 1001505 / HTC 11084 / CMTS 4786)
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RECOMMENDED ACTION
recommendation
WHEREAS, Cherrywood Apartments (Cherrywood), owned by PK Cherrywood Apartments LP (Cherrywood Owner), had uncorrected compliance findings relating to the applicable land use restriction agreements and the associated statutory and rule requirements;
WHEREAS, Southwood Apartments (Southwood), owned by PK Southwood Apartments, LP (Cottonwood Owner), had uncorrected compliance findings relating to the applicable land use restriction agreements and the associated statutory and rule requirements;
WHEREAS, Cherrywood Owner and Southwood Owner are related entities, ultimately controlled by Ronald Potterpin, Terry Potterpin, Chris Potterpin, and Lindsey Klug (collectively known as Owner or Responsible Parties);
WHEREAS, TDHCA identified findings of noncompliance during its regularly scheduled 2025 National Standards for the Physical Inspection of Real Estate (NSPIRE) and file monitoring reviews at Cherrywood and Southwood, respectively, and referred the development owners for administrative penalties when the noncompliance was not timely corrected;
WHEREAS, complete corrections were received after referral to the Enforcement Committee, but the penalty referral history did not support informal closure;
WHEREAS, an Enforcement Committee informal conference was held on January 22, 2026, and Owner agreed, subject to Board approval, to enter into an Agreed Final Order assessing a collective administrative penalty of $6,500.00; and
WHEREAS, staff has based its recommendations for an Agreed Final Order on the Department's rules for administrative penalties and an assessment of each and all of the statutory factors to be considered in assessing such penalties, applied specifically to the facts and circumstances prese...
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