Texas Register, Volume 37, Number 38, Pages 7327-7532, September 21, 2012 Page: 7,343
7327-7532 p. ; 28 cm.View a full description of this periodical.
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rental property administered by Department and as may be defined in
this title. Any capitalized terms not specifically mentioned in this sec-
tion or any section referenced in this document shall have the meaning
as defined in Texas Government Code, Chapter 2306, Internal Revenue
Code (the "Code"), 42, the HOME Final Rule, and other Department
rules as applicable.
(1) Adaptive Reuse--The change-in-use of an existing
building not, at the time of Application, being used, in whole or in
part, for residential purposes (e.g., school, warehouse, office, hospital,
hotel, etc.), into a building which will be used, in whole or in part,
for residential purposes. Adaptive reuse requires that the exterior
walls of the existing building remain in place. All units must be
contained within the original exterior walls of the existing building.
Porches and patios may protrude beyond the exterior walls. Ancillary
non-residential buildings, such as a clubhouse, leasing office and/or
amenity center may be newly constructed outside the walls of the
existing building or as detached buildings on the Development Site.
(2) Administrative Deficiencies--Information requested
by the Department staff that is required to clarify or correct one or
more inconsistencies in an Application that in the Department staffs
reasonable judgment, may be cured by supplemental information or
explanation which will not necessitate a substantial reassessment or
re-evaluation of the Application. Administrative Deficiencies may
be issued at any time while the Application or Contract is under
consideration by the Department, including at any time while review-
ing performance under a Contract, processing documentation for a
Commitment of Funds, closing of a loan, processing of a disbursement
request, close-out of a Contract, or resolution of any issues related to
compliance.
(3) Affiliate--An individual, corporation, partnership, joint
venture, limited liability company, trust, estate, association, coopera-
tive or other organization or entity of any nature whatsoever that di-
rectly, or indirectly through one or more intermediaries, has Control
of, is Controlled by, or is under common Control with any other Per-
son. All entities that share a Principal are Affiliates.
(4) Affordability Period--The Affordability Period com-
mences as specified in the Land Use Restriction Agreement (LURA)
or federal regulation, or commences on the first day of the Compliance
Period as defined by the Code, 42(i)(1) and continues through the
appropriate program's affordability requirements or termination of the
LURA, whichever is earlier. The term of the Affordability Period
shall be imposed by the LURA or other deed restriction and may be
terminated upon foreclosure. The Department reserves the right to
extend the Affordability Period for HOME or NSP Developments that
fail to meet program requirements. During the Affordability Period the
Department shall monitor to ensure compliance with programmatic
rules as applicable, regulations, and Application representations.
(5) Applicable Percentage--The percentage used to deter-
mine the amount of the Housing Tax Credit for any Development, as
defined more fully in the Code, 42(b).
(A) For purposes of the Application, the Applicable
Percentage will be projected at:
(i) nine percent if the Development is proposed to be
placed in service prior to December 31, 2013 or such timing as deemed
appropriate by the Department or if the ability to claim the full 9 percent
credit is extended by the U.S. Congress;
(ii) forty basis points over the current applicable per-
centage for 70 percent present value credits, pursuant to 42(b) of the
Code for the month in which the Application is submitted to the De-
partment; or(iii) fifteen basis points over the current applicable
percentage for 30 percent present value credits, unless fixed by Con-
gress, pursuant to 42(b) of the Code for the month in which the Ap-
plication is submitted to the Department.
(B) For purposes of making a credit recommendation
at any other time, the Applicable Percentage will be based in order of
priority on:
(i) the percentage indicated in the Agreement and
Election Statement, if executed; or
(ii) the actual applicable percentage as determined
by the Code, 42(b), if all or part of the Development has been placed
in service and for any buildings not placed in service the percentage
will be the actual percentage as determined by the Code, 42(b) for the
most current month; or
(iii) the percentage as calculated in subparagraph
(A) of this paragraph if the Agreement and Election Statement has not
been executed and no buildings have been placed in service.
(6) Application Acceptance Period--That period of time
during which Applications may be submitted to the Department.
(7) Bank Trustee--A bank authorized to do business in this
state, with the power to act as trustee.
(8) Bedroom--A portion of a Unit which is no less than 100
square feet; has no width or length less than 8 feet; is self contained
with a door (or the Unit contains a second level sleeping area of 100
square feet or more); has at least one window that provides exterior
access; and has at least one closet that is not less than 2 feet deep and
3 feet wide and high enough to accommodate 5 feet of hanging space.
A den, study or other similar space that could reasonably function as a
bedroom and meets this definition is considered a bedroom.
(9) Breakeven Occupancy--The occupancy level at which
rental income plus secondary income is equal to all operating expenses,
including replacement reserves and taxes, and mandatory debt service
requirements for a Development.
(10) Building Costs--Cost of the materials and labor for the
vertical construction or rehabilitation of buildings and amenity struc-
tures.
(11) Carryover Allocation--An allocation of current year
tax credit authority by the Department pursuant to the provisions of
42(h)(1)(C) of the Code and U.S. Treasury Regulations, 1.42-6.
(12) Carryover Allocation Agreement--A document issued
by the Department, and executed by the Development Owner, pursuant
to 10.402(f) of this chapter (relating to Housing Tax Credit and Tax
Exempt Bond Developments).
(13) Cash Flow--The funds available from operations after
all expenses and debt service required to be paid have been considered.
(14) Certificate of Reservation--The notice given by the
Texas Bond Review Board (TBRB) to an issuer reserving a specific
amount of the state ceiling for a specific issue of bonds.
(15) Code--The Internal Revenue Code of 1986, as
amended from time to time, together with any applicable regulations,
rules, rulings, revenue procedures, information statements or other
official pronouncements issued thereunder by the U.S. Department of
the Treasury or the Internal Revenue Service (IRS).
(16) Code of Federal Regulations (CFR)--The codification
of the general and permanent rules and regulations of the federal gov-
ernment as adopted and published in the Federal Register.PROPOSED RULES September 21, 2012 37 TexReg 7343
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Texas. Secretary of State. Texas Register, Volume 37, Number 38, Pages 7327-7532, September 21, 2012, periodical, September 21, 2012; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth288980/m1/16/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.