Texas Register, Volume 37, Number 38, Pages 7327-7532, September 21, 2012 Page: 7,381
7327-7532 p. ; 28 cm.View a full description of this periodical.
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(C) evidence of a line of credit or equivalent tool equal
to at least 10 percent of the Total Housing Development Cost from a
financial institution that is available for use during the proposed Devel-
opment activities.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on September 10,
2012.
TRD-201204681
Timothy K. Irvine
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: October 21, 2012
For further information, please call: (512) 475-3916
SUBCHAPTER E. POST AWARD AND ASSET
MANAGEMENT REQUIREMENTS
10 TAC 10.400 - 10.408
The Texas Department of Housing and Community Affairs (the
"Department") proposes new 10 TAC Chapter 10, Subchapter E,
10.400 - 10.408, concerning Post Award and Asset Manage-
ment Requirements. The new subchapter replaces sections, in
whole or part, of current chapters under this title, including Chap-
ters 1, 49, 50, 53, and 60 which are proposed for repeal in this
issue of the Texas Register, and re-establishes them under this
subchapter. The proposed new sections describe the require-
ments for multifamily activities that occur after the approval of
an award including requirements for commitment and determina-
tion notices, post award status and draw requirements, amend-
ments, ownership transfers, right of first refusal and qualified
contracts.
FISCAL NOTE. Mr. Timothy K. Irvine, Executive Director, has
determined that, for each year of the first five years the proposed
new sections are in effect, enforcing or administering the pro-
posed new sections does not have any foreseeable implications
related to new costs or revenues of the state or local govern-
ments.
PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined
that, for each year of the first five years the proposed new sec-
tions are in effect, the public benefit anticipated as a result of the
proposed new sections will be a more consistent and uniform
approach to the activities that occur after an award of funds is
made. There is no anticipated new direct cost impact as a result
of the proposed adoption of the new sections. It is not anticipated
that the proposed new sections will have a change in economic
cost to any individual required to comply with the proposed new
sections.
ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The
Department has determined that there will be no change in eco-
nomic effect on small businesses or micro-businesses as a result
of the proposed new sections.
LOCAL EMPLOYMENT IMPACT STATEMENT. The Department
has determined that there will be no effect on local economies
as a result of the proposed new sections.REQUEST FOR PUBLIC COMMENT. The public comment pe-
riod will be held September 21, 2012 to October 22, 2012 to
receive input on the new sections. Written comments may be
submitted to the Texas Department of Housing and Commu-
nity Affairs, P.O. Box 13941, Austin, Texas 78711-3941, ATTN:
Cari Garcia, Director of Asset Management; or by FAX to (512)
475-7500. ALL COMMENTS MUST BE RECEIVED BY 5:00
P.M. OCTOBER 22, 2012.
STATUTORY AUTHORITY. The new sections are proposed pur-
suant to Texas Government Code, 2306.053, which authorizes
the Department to adopt rules.
The proposed new sections affect Texas Government Code,
Chapter 2306, including Subchapter DD, concerning Low In-
come Housing Tax Credit Program.
10.400. Purpose.
The purpose of this chapter is to establish the requirements governing
the post award and asset management activities associated with awards
of multifamily development assistance pursuant to Texas Government
Code, Chapter 2306 and its regulation of multifamily funding provided
through the Texas Department of Housing and Community Affairs (the
"Department") as authorized by the legislature. This chapter is de-
signed to ensure that Developers and Development Owners of low-in-
come Developments that are financed or otherwise funded through the
Department maintain safe, decent and affordable housing for the term
of the affordability period.
10.401. General Commitment or Determination Notice Require-
ments and Documentation.
(a) A Commitment or Determination Notice shall not be is-
sued with respect to any Development for an unnecessary amount or
where the cost for the total development, acquisition, construction or
rehabilitation exceeds the limitations established from time to time by
the Department and the Board, unless staff makes a recommendation
that is clearly documented to the Board based on the need to fulfill the
goals of the applicable multifamily program as expressed herein and
other applicable Department rules, and the Board accepts the recom-
mendation.
(b) All Commitments or Determination Notices, whether re-
flected in the Commitment or Determination Notice or not, are made
subject to full compliance with all provision of law and rule, including
compliance with the Qualified Allocation Plan, the Uniform Multifam-
ily Rules, the Multifamily Housing Revenue Bond Rules, completion
of underwriting and satisfactory compliance with the results thereof,
full and satisfactory addressing of any Administrative Deficiencies and
conditions of award, Commitment, Contract or any other matters.
(c) The Department shall notify, in writing, the mayor, chief
county judge, or other appropriate official of the municipality or county,
as applicable, in which the Development is located informing him/her
of the Board's issuance of a Commitment or Determination Notice, as
applicable.
(d) The Department may cancel a Commitment, Determina-
tion Notice or Carryover Allocation prior to the issuance of IRS Form
8609 (for Housing Tax Credits) or completion of construction with re-
spect to a Development and/or apply administrative penalties if:
(1) the Applicant or the Development Owner, or the Devel-
opment, as applicable, fails after written notice and a reasonable oppor-
tunity to cure to meet any of the conditions of such Commitment, De-
termination Notice or Carryover Allocation or any of the undertakings
and commitments made by the Development Owner in the Application
process for the Development;PROPOSED RULES September 21, 2012 37 TexReg 7381
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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/m1/54/: accessed April 24, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.