Texas Register, Volume 38, Number 51, Pages 9155-9408, December 20, 2013 Page: 9,317

                                
choose the various options and believe that further targeting may
have the effect of decreasing the financial viability of many de-
velopments. In addition, staff would recommend this option be
explored further to ensure that a 15% of AMI option would work
throughout the state, including those areas with already very low
median incomes. Staff recommended no change.
BOARD RESPONSE: Based on public comment at the Board
meeting, the Board made the following change to this scoring
item:
"(2) Rent Levels of Tenants. (2306.6710(b)(1)(G)) An Appli-
cation may qualify to receive up to thirteen (13) points for rent
and income restricting a Development for the entire Affordability
Period. These levels are in addition to those committed under
paragraph (1) of this subsection.
"(A) At least 20 percent of all low-income Units at 30 percent or
less of AMGI for Supportive Housing Developments qualifying
under the Nonprofit Set-Aside, or for Developments participating
in the City of Houston's Permanent Supportive Housing ("PSH")
program. A Development participating in the PSH program and
electing points under this subparagraph must have applied for
PSH funds by the Full Application Delivery Date, must have a
commitment of PSH funds by Commitment, must qualify for five
(5) or seven (7) points under paragraph (4) of this subsection
(relating to the Opportunity Index), and must not have more than
18 percent of the total Units restricted for Persons with Special
Needs as defined under paragraph (7) of this subsection (relating
to Tenant Populations with Special Housing Needs) (13 points);"
11.9(c)(3) - Selection Criteria - Tenant Services (29)
COMMENT SUMMARY: Commenter (29) recommended that
Houston-designated Permanent Supportive Housing Program
proposals receive equivalent points as it relates to this scoring
item and suggested the following modification:
"A Supportive Housing Development qualifying under the Non-
profit Set-Aside or qualifying for a Permanent Supportive Hous-
ing designation from the City of Houston may qualify to receive
up to eleven (11) points and all other Developments may receive
up to ten (10) points. By electing points, the Applicant certifies
that the Development will provide a combination of supportive
services, which are listed in 10.101(b)(7) of this title, appropri-
ate for the proposed tenants and that there is adequate space
for the intended services. The provision and complete list of sup-
portive services will be included in the LURA or documented as
required by the City of Houston Permanent Supportive Hous-
ing Program. The Owner may change, from time to time, the
services offered; however, the overall points as selected at Ap-
plication will remain the minimum. No fees may be charged to
the tenants for any of the services. Services must be provided
on-site or transportation to those off-site services identified on
the list must be provided. The same service may not be used for
more than one scoring item."
STAFF RESPONSE: In response to Commenter (29), just as
with the scoring item related to Rent Levels of the Tenants, the
current language does not necessarily preclude applications that
qualify for a permanent supportive housing designation from the
City of Houston from also qualifying for points under this scoring
item in the QAP. The differences in definitions and uncertainty
surrounding how the two programs will operate together causes
concern. However, staff believed the issue should be revisited
in the next rule making cycle. Staff recommended no change.

BOARD RESPONSE: Based on public comment at the Board
meeting, the Board made the following changes to this scoring
item:
"(3)  Tenant  Services.    (2306.6710(b)(1)(1)  and
2306.6725(a)(1)) A  Supportive  Housing  Development
qualifying under the Nonprofit Set-Aside or Developments
participating in the City of Houston's Permanent Supportive
Housing ("PSH") program may qualify to receive up to eleven
(11) points and all other Developments may receive up to ten
(10) points. A Development participating in the PSH program
and electing eleven (11) points under this paragraph must have
applied for PSH funds by the Full Application Delivery Date,
must have a commitment of PSH funds by Commitment, must
qualify for five (5) or seven (7) points under paragraph (4) of
this subsection, and must not have more than 18 percent of
the total Units restricted for Persons with Special Needs as
defined under paragraph (7) of this subsection. By electing
points, the Applicant certifies that the Development will provide
a combination of supportive services, which are listed in
10.101(b)(7) of this title, appropriate for the proposed tenants
and that there is adequate space for the intended services.
The provision and complete list of supportive services will be
included in the LURA. The Owner may change, from time
to time, the services offered; however, the overall points as
selected at Application will remain the minimum. No fees may
be charged to the tenants for any of the services. Services must
be provided on-site or transportation to those off-site services
identified on the list must be provided. The same service may
not be used for more than one scoring item."
11.9(c)(4) - Selection Criteria - Opportunity Index (1), (18), (23),
(26), (28), (30), (35), (37), (39), (40), (42), (44)
COMMENT SUMMARY: Commenter (40) recommended this
scoring item be modified to reflect that for developments in an
urban area, five points be allowed for developments serving
any population that are in the top quartile and in the attendance
zone of a qualifying elementary school. Commenter (40) further
expressed that general population developments already have
a two-point advantage when in the first quartile and that the
remedial plan requires five points under the opportunity index
for any population served with less than 15 percent poverty in
the first quartile census tract and a qualifying elementary school.
"(A) For Developments located in an Urban Area, if the proposed
Development Site is located within a census tract that has a
poverty rate below 15 percent for Individuals (or 35 percent for
Developments in Regions 11 and 13), an Application may qual-
ify to receive up to seven (7) points upon meeting the additional
requirements in clauses (i) - (v) of this subparagraph. The De-
partment will base poverty rate on data from the five (5) year
American Community Survey.
"(i) the Development targets the general population or Support-
ive Housing, the Development Site is located in a census tract
with income in the top quartile of median household income for
the county or MSA as applicable, and the Development Site
is in the attendance zone of an elementary school that has a
Met Standard rating and has achieved a 77 or greater on index
1 of the performance index, related to student achievement (7
points);
"(ii) the Development targets the general population or Support-
ive Housing, the Development Site is located in a census tract
with income in the second quartile of median household income
for the county or MSA as applicable, and the Development Site

ADOPTED RULES      December 20, 2013  38 TexReg 9317