Texas Register, Volume 37, Number 38, Pages 7327-7532, September 21, 2012 Page: 7,406
7327-7532 p. ; 28 cm.View a full description of this periodical.
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(8) All additional income and rent restrictions defined in
the LURA remain in effect;
(9) For Additional Use Restrictions, defined in the LURA
(such as supportive services, nonprofit participation, elderly, etc), refer
to the Development's LURA to determine if compliance is required
after the completion of the Compliance Period;
(10) The Owner shall not terminate the lease or evict low
income residents for other than good cause;
(11) The total number of required HTC Low Income Units
must be maintained Development wide; and
(12) The Annual Eligibility Certification must be collected
for all low income households on an annual basis. See 10.609 of this
chapter (relating to Annual Recertification for All Programs and Stu-
dent Requirements for HTC, Exchange, TCAP, and BOND Develop-
ments).
(c) After the first fifteen (15) years of the Extended Use Period,
certain requirements will not be monitored as detailed in paragraphs (1)
- (5) 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. If a Development markets
to students or leases more than 15 percent of the total number of units
to student households, the property will be found in noncompliance
unless the LURA is amended through the Material Amendments pro-
cedures found in 10.405 of this chapter (relating to Amendments);
(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) All households, regardless of income level or 8609
elections, will be allowed to transfer between buildings within the
Development;
(4) The Department will not monitor the Development's
application fee after the Compliance Period is over; and
(5) Mixed income Developments are not required to con-
duct annual income recertifications.
(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, the 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.
10.621. 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 Compliance Division. However, not all
issues listed in this section pertain to all Developments. In addition,
only certain noncompliance events are reportable on Form 8823. Those
events that are reportable under the HTC program on Form 8823 are so
indicated in subsections (h) and (i) of this section.
(d) For HTC Developments, all Forms 8823 issued by the De-
partment will be entered into the Department's Compliance Status Sys-
tem. However, Forms 8823 issued prior to January 1, 1998 will not be
considered in determining Material Noncompliance.
(e) For all programs, a Development will be in Material Non-
compliance if the noncompliance event is stated in this section to be
Material Noncompliance. The Department may take into considera-
tion the representations of the Owner regarding monitoring notices and
Owner responses; however, unless an Owner can prove otherwise, the
compliance records of the Department shall be presumed to be correct.
(f) All Developments, regardless of status, that are or have
been administered, funded, or monitored by the Department, are scored
even if the Development no longer actively participates in the program,
with the exception of properties in the CDBG disaster recovery and
Federal Deposit Insurance Corporation's (FDIC) Affordable Housing
Disposition Program.
(g) Noncompliance events are categorized as either "Develop-
ment events" or "Unit/building events". Development events of non-
compliance affect some or all the buildings in the Development; how-
ever, the Development will receive only one score for the noncompli-
ance event rather than a score for each Unit or building. Other noncom-
pliance events are identified individually by Unit and will receive the
appropriate score for each Unit cited with an event. The Unit scores and
the Development scores accumulate towards the total score of the De-
velopment. Violations under the HTC program are identified by Unit;
however, the building is scored rather than the Unit and the building
will receive the noncompliance score if one or more of the Units in
that building are in noncompliance.
(h) Uncorrected noncompliance events, if applicable to the
Development, will carry the maximum number of points until the
noncompliance event has been reported corrected by the Department.
Once reported corrected by the Department, the score will be reduced
to the "corrected value." Corrected noncompliance will no longer be
included in the Development score three (3) years after the date the
noncompliance was reported corrected by the Department.
(i) Each noncompliance event is assigned a point value. The
possible events of noncompliance and associated "corrected" and "un-
corrected" points are listed in subsections (j) and (k) of this section.
(j) Figure: 10 TAC 10.621(j) lists events of noncompliance
that affect the entire Development rather than an individual Unit. The
first column of the chart identifies the noncompliance event. The sec-
ond column identifies the number of points assigned this event while
the issue is uncorrected. The Material Noncompliance threshold for
a HTC and Exchange Developments is 30 points. The Material Non-
compliance threshold for a non-HTC Development with 1-50 Low In-
come Units is 30 points. The Material Noncompliance threshold for a
non-HTC Development with 51-200 Low Income Units is 50 points.
The Material Noncompliance threshold for non-HTC Developments
with 201 or more Low Income Units is 80 points. The third column
lists the number of points assigned to the event from the date the issue
is corrected until three (3) years after correction. The fourth column
indicates which programs the noncompliance event applies. The last
column indicates if the issue is reportable on Form 8823 for HTC De-
velopments.37 TexReg 7406 September 21, 2012 Texas Register
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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/m1/79/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.