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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.tx.us
Greg Abbott BOARD MEMBERS
GOVERNOR Leo Vasquez, Chair
Kenny Marchant, Vice Chair
Anna Maria Farías, Member
Holland Harper, Member
Ajay Thomas, Member

October 5, 2023
Writer’s direct dial: (512) 475-3296
Email: bobby.wilkinson@tdhca.state.tx.us

David A. Northern
President and CEO
Houston Housing Authority
Via email: president@housingforhouston.com

RE: 800 Middle Apartments AKA The Pointe at Bayou Bend, HTC Application #22419

Dear Mr. Northern:

On June 7, 2022, TDCHA staff administratively issued a Determination Notice for the above-
described application for 4% Housing Tax Credits. As you know, a Determination Notice is not an award
of credits, as that decision rests solely with the Internal Revenue Service, and is subject to final cost
certification review and issuance of IRS Form 8609 by the Department.

The Determination Notice on this Application was based on numerous factors and documents
submitted with the Application, including the Environmental Site Assessment (ESA) for the eight-acre
Development Site and description of the greater 21-acre tract. Several hundred feet from the
Development Site, historical environmental hazards in soil and ash deposits were identified in the ESA,
but since they were reported as having been made stable by the placement of an impermeable clay cap
or other mitigation efforts, the ESA concluded there was “no evidence of recognized environmental
conditions in connection with [the eight-acre Development Site].”

Recent public reports indicate that, in the course of performing work near to the Development
Site, mitigation previously performed on the broader 21-acre site is being reversed and is exposing
previously capped or contained ash and potentially hazardous materials. This factual development calls
into question whether the Development Site is or has recently been exposed to hazardous materials or
conditions that affect the accuracy of the conclusions of the ESA.

221 East 11th Street P.O. Box 13941 Austin, Texas 78711-3941 (800) 525-0657 (512) 475-3800
800 Middle Apartments AKA The Pointe at Bayou Bend, HTC Application #22419
Page 2

By this letter, TDHCA seeks assurances that the conclusions of the ESA submitted as part of
Application #22419 remain complete and accurate in all material respects. In accordance with the terms
and conditions of the Determination Notice, and TDHCA’s statutory duty under Tex. Gov’t Code
§§2306.001 and .002 to assist local governments in providing safe, decent, and affordable housing for
individuals and families of low income, TDHCA requests you immediately commission an independent
third-party provider to conduct a Phase 2 ESA on the Development Site of 800 Middle, and promptly
report the results to the Department. It is expected that this Phase 2 ESA will be provided at no expense
to the Department, will be conducted by a different consultant than the ESA Phase 1 submitted with the
Application, and can be produced within 120 days of this letter.

Sincerely,

Bobby Wilkinson
Executive Director
Texas Dep’t of Housing and Community Affairs

copy: Nick Walsh (texasNRP@nrpgroup.com)

Dawn Brown (drbrown@nrpgroup.com)