Title
Consider a memorandum/resolution approving a Letter Agreement with Tank Destroyer Apartments, LP acknowledging the Basic Housing Allowance Income Determination under LIHTC Rules and Rental Rate Calculation.
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DATE: June 17, 2025
TO: Kent Cagle, City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Letter Agreement with Tank Destroyer Apartments, LP acknowledging the Basic Housing Allowance Income Determination under LIHTC Rules and Rental Rate Calculation
BACKGROUND AND FINDINGS:
In November 2021, The Killeen PFC entered into a Regulatory Agreement and Declaration of Restrictive Covenants with Tank Destroyer Apartments, LP (“Owner”) relating to the Tank Destroyer Apartments project. The Owner has requested that the PFC execute a Letter Agreement acknowledging the basic housing allowance income determination under Low Income Housing Tax Credit (“LIHTC”) rules which allows exclusion of Basic Housing Allowance (“BHA”) from income calculations when determining household incomes for service member households.
The Letter Agreement would acknowledge the foregoing and agree that Owner may apply the LIHTC income determination rules excluding BHA from income calculation for service member households. Owner agrees to indemnify the PFC from any liabilities or damages arising from any action taken by the Owner in connection with this agreement.
THE ALTERNATIVES CONSIDERED:
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Which alternative is recommended? Why?
Staff recommends approval of a Letter Agreement with Tank Destroyer Apartments, LP acknowledging the Basic Housing Allowance Income Determination under LIHTC Rules and Rental Rate Calculation.
CONFORMITY TO CITY POLICY:
This action conforms with applicable law.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
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Is this a one-time or recurring revenue/expenditure?
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Is this revenue/expenditure budgeted?
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If not, where will the money come from?
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Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
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RECOMMENDATION:
Staff recommends approval of a Letter Agreement with Tank Destroyer Apartments, LP acknowledging the Basic Housing Allowance Income Determination under LIHTC Rules and Rental Rate Calculation.
DEPARTMENTAL CLEARANCES:
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ATTACHED SUPPORTING DOCUMENTS:
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