Texas Register, Volume 35, Number 48, Pages 10363-10560, November 26, 2010 Page: 10,391
10363-10560 p. ; 28 cm.View a full description of this periodical.
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tain documentation of market rents for comparable unassisted Units in
the neighborhood.
(g) Special conditions for NSP and CDBG properties. To de-
termine if a Unit is rent restricted, the amount of rent paid by the house-
hold, plus an allowance for utilities, plus any rental assistance payment
must be less than the applicable limit.
,60.121. Notices to the Internal Revenue Service (HTC Properties).
(a) Even when an event of noncompliance is corrected, the
Department is required to file IRS Form(s) 8823 with the IRS. IRS
Form(s) 8823 will be filed not later than forty-five (45) days after the
end of the correction period specified in the Notice to Owner (includ-
ing any extensions permitted by the Department) but will not be filed
before the end of the correction period. The Department will indicate
on IRS Form(s) 8823 the nature of the noncompliance and will indicate
whether the Development Owner has corrected the noncompliance.
(b) The Department will retain records of noncompliance or
failure to certify for six (6) years beyond the Department's filing of the
respective IRS Form(s) 8823. The Department will retain the AOCRs
and records for three years from the end of the calendar year the De-
partment receives the certifications and records.
(c) The Department will send the Owner of record copies of
any IRS Form(s) 8823 submitted to the IRS. Copies of Form(s) 8823
will be submitted to the syndicator for Developments awarded tax cred-
its after January 1, 2004. The Development Owner is responsible for
providing the name and mailing address of the syndicator in the Annual
Owner's Compliance Report.
60.122. Monitoring Procedures for Housing Tax Credit Properties
After the Compliance Period.
(a) HTC properties allocated credit in 1990 and after are re-
quired under 42(h)(6) of the Code to record a LURA restricting the
property for at least thirty (30) years. Various sections of the Code
specify monitoring rules State Housing Finance Agencies must imple-
ment during the Compliance Period.
(b) After the Compliance Period, the Department will continue
to monitor Housing Tax Credit Developments using the rules detailed
in paragraphs (1) - (12) of this subsection.
(1) On site monitoring visits will continue to be conducted
approximately every three years, unless the Department determines that
a more frequent schedule is necessary.
(2) In general, the Department will review 10 percent of the
low income files. No less than five (5) files and no more than twenty
(20) files will be reviewed.
(3) The exterior of the property, all building systems and 10
percent of Low Income Units. No less than five (5) but no more than
thirty-five (35) of the Development's Low Income Units will be physi-
cally inspected to determine compliance with HUD's Uniform Physical
Condition Standards.
(4) Each Development shall submit an annual report in the
format prescribed by the Department.
(5) Reports to the Department must be submitted electron-
ically as required in 60.105 of this chapter (relating to Reporting Re-
quirements).
(6) Compliance monitoring fees will continue to be sub-
mitted to the Department annually in the amount stated in the LURA.
(7) All households must be income qualified upon initial
occupancy of any Low Income Unit. Proper verifications of income are
required, and the Department's Income Certification form must be com-pleted unless the Development participates in the Rural Rental Housing
Program or a project based HUD program.
(8) Rents will remain restricted for all Low Income Units.
After the Compliance Period, utilities paid to the owner can be ac-
counted for in the utility allowance. The tenant paid portion of the
rent plus the applicable utility allowance must not exceed the applica-
ble limit.
(9) All additional income and rent restrictions defined in
the LURA remain in effect.
(10) For Additional Use Restrictions, defined in the LURA
(such as supportive services, nonprofit participation, elderly, etc), refer
to the property's LURA to determine if compliance is required after the
completion of the compliance period.
(11) The Owner shall not terminate the lease or evict low
income residents for other than good cause.
(12) The total number of required Low Income Units must
be maintained Development wide.
(c) After the first fifteen (15) years of the Extended Use Period,
certain requirements will not be monitored as detailed in paragraphs (1)
- (4) of this subsection.
(1) The student restrictions found in 42(i)(3)(D) of the
Code. An income qualified household consisting entirely of full time
students may occupy a Low Income Unit.
(2) The building's applicable fraction found in the Devel-
opment's Cost Certification and/or the LURA. Low income occupancy
requirements will be monitored Development wide, not building by
building.
(3) Household transfers between buildings restricted by
42(g)(1) of the Code. All households, regardless of HTC income
level designation, will be allowed to transfer between buildings with
the Development.
(4) The Department will not monitor the Development's
application fee after the Compliance Period is over.
(d) Regardless of the requirements stated in a LURA, the De-
partment will monitor in accordance with this section.
(e) Unless specifically noted in this section, all requirements
of this chapter, LURA and 42 of the Code remain in effect for the
Extended Use Period. These Post-Year fifteen (15) Monitoring Rules
apply only to the HTC Developments administered by the Department.
Participation in other programs administered by the Department may
require additional monitoring to ensure compliance with the require-
ments of those programs.
,60.123. Material Noncompliance Methodology.
(a) The Department maintains a compliance history of each
monitored Development in the Department's Compliance Status Sys-
tem. Developments with more than one program administered by the
Department are scored by program. The Development will be consid-
ered in Material Noncompliance if the score for any single program
exceeds the Material Noncompliance threshold for that program.
(b) A Development will not be assigned the scores noted in
this section until after the Owner has been provided a written notice of
the noncompliance and provided a corrective action deadline to show
that either the Development was never in noncompliance or that the
noncompliance event has been corrected.
(c) This section identifies all possible noncompliance events
for all programs monitored by the Physical Inspection and Compliance
Monitoring Sections of the CAO Division. However, not all issuesPROPOSED RULES November 26, 2010 35 TexReg 10391
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Texas. Secretary of State. Texas Register, Volume 35, Number 48, Pages 10363-10560, November 26, 2010, periodical, November 26, 2010; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth139254/m1/28/: accessed May 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.