Texas Register, Volume 37, Number 38, Pages 7327-7532, September 21, 2012 Page: 7,401
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Units restricted at the 60 percent income and rent limits). The min-
imum set-aside elected sets the maximum income and rent limits for
the low-income units on the Development. Many Developments have
additional income and rent requirements (i.e., 30 percent, 40 percent
and 50 percent) that are lower than the minimum set-aside requirement.
This requirement is referred to as "additional occupancy restrictions"
and is reflected in the Development's LURA. The Department will ex-
amine the actual gross rent and income levels of all households to de-
termine if the additional income and rent requirements of the LURA
are met.
(b) For 100 percent HTC Developments that are not required
to perform annual recertification, regardless of the requirements stated
in the Development's LURA, the additional rent and occupancy restric-
tions will be monitored as follows:
(1) Households initially certified at the 30 percent income
and rent limits. Households will maintain their designation they had
at initial move-in. The Unit will continue to meet the 30 percent set-
aside requirement provided that the Owner does not charge gross rent
in excess of the 30 percent rent limit. When the household vacates
the Unit, the next available Unit on the Development is leased to a
household with an income and rent less than the 30 percent limit;
(2) Households initially certified at the 40 percent income
and rent limits. Households will maintain their designation they had
at initial move in. The Unit will continue to meet the 40 percent set-
aside requirement provided that the Owner does not charge gross rent
in excess of the 40 percent rent limit. When the household vacates
the Unit, the next available Unit on the Development is leased to a
household with an income and rent less than the 40 percent limit; and
(3) Households initially certified at the 50 percent income
and rent limits. Households will maintain their designation they had
at initial move in. The Unit will continue to meet the 50 percent set-
aside requirement provided that the Owner does not charge gross rent
in excess of the 50 percent rent limit. When the household vacates
the Unit, the next available Unit on the Development is leased to a
household with an income and rent less than the 50 percent limit.
(c) Mixed Income HTC Developments with Market Units will
be monitored as follows:
(1) The HTC program requires Mixed Income Develop-
ments with Market Units to comply with the Available Unit Rule.
When a household's income at recertification exceeds 140 percent of
the applicable current income limit elected by the minimum set-aside,
the owner must comply with the Available Unit Rule and lease the next
available unit (same size or smaller) in the building to a low-income
household to maintain compliance. For HTC Developments that are
required to perform annual recertifications, the additional rent and
occupancy restrictions will be monitored as follows;
(A) Households initially certified at the 30, 40 or 50 per-
cent income and rent limits,
(B) Households will maintain the designation they had
at initial move in unless the household's income exceeds 140 percent
of the highest income tier established by the minimum set-aside. The
Unit will continue to meet the designation from the initial certification
provided that the Owner does not charge gross rent in excess of the
additional rent and occupancy rent limit,
(C) The household will not be required to vacate the
Unit for other than good cause. When the household vacates the Unit,
the next available Unit on the Development must be leased so as to meet
the Development's additional rent and occupancy restrictions, and(D) If the household's income exceeds 140 percent of
the highest income tier established by the minimum set-aside, the
household must be redesignated as over income (OI) and the Next
Available Unit Rule must be followed. Example 610(1): A household
was initially certified at the 40 percent income limit at move in. The
household's income increases at recertification above the 40 percent
income limit to the 50 percent income limit. The Unit will continue
to meet the 40 percent set-aside requirement provided that the Owner
does not charge rent in excess of the 40 percent rent limit. When the
household vacates the Unit, the Next Available Unit on the Develop-
ment is leased to a household with an income and rent less than the 40
percent limits.
(2) This subsection does not require HTC Developments
to lease more Units under the additional occupancy restrictions than
established in their LURA. Example 610(2): If a Development is re-
quired to lease 10 units at the 40 percent income and rent levels and
has satisfied the requirement, the owner is not required to offer the 40
percent rent to other households, even if their income is less than the
40 percent income limit.
(d) Units at 80 percent area median income and rent on HTC
developments. In certain years, the Department's Qualified Allocation
Plan provided incentives to lease 10 percent of the development's Mar-
ket Rate units to households at 80 percent income and rents. This sec-
tion provides guidance for implementation. If the LURA requires 10
percent of the Market Rate units be leased to households at 80 percent
income and rent limits, the owner must certify the 80 percent house-
holds at the time of move in only. Recertifications will not be required.
Student rules do not apply to units occupied by 80 percent households.
Noncompliance with the requirement to lease to 80 percent households
is not reportable to the IRS on Form 8823 but will be cited and scored
as noncompliance under the event "Development failed to meet addi-
tional State required rent and occupancy restrictions".
10.611. Household Unit Transfer Requirements.for All Programs.
(a) Household Transfers for One-Hundred percent HTC, Ex-
change, and TCAP Developments. For HTC Developments that are
100 percent low-income, a household may transfer to any Unit within
the same project, as defined as a multiple building project on Part II,
question 8b of the IRS Form 8609. If the Owner elected to treat each
building as a separate project, as defined on Part II, question 8b of the
8609 form, households must be certified as low-income (determined
by the Development's minimum set-aside election) prior to moving to
another building on the Development.
(b) Household Transfers for Mixed Income HTC, Exchange
and TCAP Developments. For HTC Developments that are Mixed In-
come with Market Units, a household may transfer to another building
in the same project, as defined as a multiple building project on Part II
of the IRS Form 8609 if the household was not over income (OI) at the
time of the last annual income recertification. If the Owner elected to
treat each building as a separate project, as defined on Part II of the IRS
Form 8609, households must be certified as low-income (determined
by the Development's minimum set-aside election) prior to moving to
another building on the Development.
(c) Household transfers for BOND, HTF, HOME, and NSP.
For BOND, HTF, HOME, and NSP Developments, households may
transfer to any Unit within the Development. A certification is not re-
quired at the time of transfer. If the Development is required to perform
annual income recertifications, the recertification is due on the anniver-
sary date the household originally moved onto the Development. If the
Development is layered with Housing Tax Credits, default to transfer
guidelines under the HTC rules.PROPOSED RULES September 21, 2012 37 TexReg 7401
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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/m1/74/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.