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Presentation, discussion, and possible action regarding changes to the ownership structure and a waiver of 10 TAC ?11.9(b)(2)(A) for Paige Estates (HTC #21121/23931)
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RECOMMENDED ACTION
recommendation
WHEREAS, Paige Estates (Development) received a 9% Housing Tax Credit (HTC) award in 2021 and supplemental credits in 2023 to construct 64 multifamily units in Waco, McLennan County;
WHEREAS, the HTC Application for the Development received two points for agreeing to include a certified Historically Underutilized Business (HUB) in the ownership structure of the General Partner and materially participating in the development and operation of the Development throughout the Compliance Period, and receiving a combination of ownership interest in the General Partner of the Applicant, cash flow from operations, and developer fee which taken together equal at least 50% and no less than 5% for any category;
WHEREAS, Paige Estates, L.P. (Development Owner or Owner) is seeking to revise the ownership structure by changing the current General Partner, JES Partnerships-Paige Estates, L.L.C., which is partly owned by a HUB, to a Special Limited Partner and adding a new General Partner, Waco Housing Opportunities Corporation, an entity formed by the Waco Housing Authority, which will allow the Development to receive a property tax exemption;
WHEREAS, the Applicant requests a waiver of the specific requirement in 10 TAC ?11.9(b)(2)(A) that states the HUB must have an ownership interest in the General Partner, allowing the Development to continue to qualify for the two points for Sponsor Characteristics with the HUB in the ownership structure of the Special Limited Partner and continuing to meet the intent of 10 TAC ?11.9(b)(2)(A) to have a HUB materially participate in the Development;
WHEREAS, the HUB will remain in the ownership structure as the sole member of Paige Estates HUB, L.L.C., the 40% member of the Special Limited Partner, and will continue to material...
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