Draft Multifamily Rules

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BOARD ACTION REQUEST

MULTIFAMILY FINANCE DIVISION

SEPTEMBER 3, 2015

Presentation, Discussion, and Possible Action on proposed repeals of 10 TAC Chapter 10 Subchapter A, concerning General Information and Definitions, Subchapter B, concerning Site and Development Requirements and Restrictions, Subchapter C, concerning Application Submission Requirements, Ineligibility Criteria, Board Decisions and Waiver of Rules for Applications, and Subchapter G, concerning Fee Schedule, Appeals and Other Provisions, and a proposed new 10 TAC Chapter 10 Subchapter A, concerning General Information and Definitions, Subchapter B, concerning Site and Development Requirements and Restrictions, Subchapter C, concerning Application Submission Requirements, Ineligibility Criteria, Board Decisions and Waiver of Rules for Applications, and Subchapter G, concerning Fee Schedule, Appeals and Other Provisions, and directing their publication for public comment in the Texas Register

RECOMMENDED ACTION

WHEREAS, the Uniform Multifamily Rules contain eligibility, threshold, and procedural requirements relating to applications requesting multifamily funding; and WHEREAS, changes have been proposed to improve the efficiency of the funding sources involved and enhance their effectiveness in achieving policy objectives; NOW, therefore, it is hereby RESOLVED, that the proposed repeal of 10 TAC Chapter 10 Subchapter A General Information and Definitions, Subchapter B Site and Development Requirements and Restrictions, Subchapter C Application Submission Requirements, Ineligibility Criteria, Board Decisions and Waiver of Rules for Applications, and Subchapter G Fee Schedule, Appeals and Other Provisions and proposed new 10 TAC Chapter 10, Subchapters A, B, C and G concerning Uniform Multifamily Rules together with the preambles presented to this meeting, are approved for publication in the Texas Register for public comment and

FURTHER RESOLVED, that the Executive Director and his designees be and each of them are hereby authorized, empowered, and directed, for and on behalf of the Department, to cause the proposed Uniform Multifamily Rules together with the preamble in the form presented to this meeting, to be published in the Texas Register for public comment and, in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing.

BACKGROUND

General Information: Attached behind this Board Action Request is the proposed 2016 Uniform Multifamily Rule which reflects staff’s recommendations for the Board’s consideration. This rule establishes the general requirements associated in making an award of multifamily development funding. In getting the 2016 rulemaking process underway, staff disseminated anticipated changes utilizing various methods. Staff hosted a roundtable discussion with approximately 170 people in attendance, participated in several discussions at the TAAHP Conference in July 2015, and discussed proposed changes and

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solicited feedback. In August 2015 staff also participated in several meetings with industry individuals, at their request, to discuss their ideas on proposed changes. Lastly, staff launched as it has in prior years, the online discussion forum to allow interested registered users of the forum an opportunity to engage with the Department and one another and provide feedback on possible changes. Staff evaluated the information received in these discussions by which to formulate the draft rules contained herein. Rule-Making Timeline: Upon Board approval, the draft Uniform Multifamily Rules will be posted to the Department’s website and published in the Texas Register. Public comment will be accepted between September 18, 2015, and October 15, 2015, and there will also be a consolidated public hearing during this time to garner public comment. The Uniform Multifamily Rules will be brought before the Board in November for final approval and subsequently published in the Texas Register for adoption. Subchapters for this Action Request: This Board Action Request includes the subchapters, as noted below, that are part of the 2016 draft Uniform Multifamily Rule. The other subchapters (e.g., Subchapters D and E) are found under a separate Board Action Request and include specific changes to those rules. Subchapter A – Provides general information regarding the Department’s multifamily funding and includes an extensive list of definitions specific to multifamily applications. Subchapter B – Outlines the site and development requirements and restrictions, including but not limited to, floodplain restrictions, proximity to community assets, undesirable site and neighborhood features, development size limitations, rehabilitation costs, common and unit amenities, and tenant supportive services. Subchapter C – Includes procedural requirements for submitting an application, the documentation required as part of the application including forms and templates, criteria that would render an applicant or application ineligible, how applications will be prioritized for review, information regarding board decisions, and the waiver process. Subchapter G - This subchapter contains information regarding Department fees and other general requirements, including, but not limited to, the appeals process, adherence to obligations and the alternative dispute resolution policy. Statutory Changes: While the majority of the statutory changes made during the 84th Legislative Session are proposed to be incorporated into the 2016 Draft QAP, staff has included the statutory requirement in HB 74 described below in Subchapter C.

HB 74 – Requires the creation of a process by which a local political subdivision or a census designated place may apply to the Department for a rural designation.

Summary of Proposed Changes: This section outlines some of the more significant recommendations by staff. Citation and page references are indicated for ease of reference.

1. Subchapter A §10.3 Definitions (Various Pages in Subchapter A). The changes to this subchapter include the following: removal of the definition for colonia as such area is instead defined under §11.9(c)(6) of the QAP relating to the scoring item; a new definition for Elderly Development will replace the definition for Qualified Elderly Development. This change is the result from recent guidance from HUD regarding how elderly developments will be monitored depending on the type of funding involved; modifications to Rural Area that takes into

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consideration the ability for an area to request a rural designation; and a modification to supportive housing that includes a consideration for tax-exempt bond developments utilizing a financing structure where the bonds are expected to be redeemed upon construction completion, placement in service or stabilization and no other permanent debt will remain, the Supportive Housing Development may be treated as Supportive Housing under the Underwriting Rules. Staff notes that with respect to the modifications to the Elderly Development definition, the impact such change will have on various aspects of the Department’s rules, included herein as well as other rules on the Board agenda today, are still under review by staff. Staff anticipates hosting a roundtable discussion during the public comment period to better understand possible ramifications associated with the change in concept.

2. Subchapter B §10.101(2) Site and Development Requirements and Restrictions – Mandatory

Community Services and Other Assets (Page 1 of 15 in Subchapter B). This section requires all multifamily developments funded through the Department to be located within 3 miles of a full service grocery store, a pharmacy and an urgent care facility or the application would be considered ineligible. The list of community assets has been modified to include proximity to a higher education campus, removes religious institutions, and modifies that the proximity to a medical office should be that of a general practitioner. Senior centers as a separate item, has been removed, since it could be categorized in an existing asset of indoor public recreation facility. Also reflected under this section is a new requirement that a development be located within the attendance zones of an elementary school, a middle school and a high school that has a Met Standard rating by the Texas Education Agency or the application would be considered ineligible except for applications proposing to serve a limited elderly population.

3. Subchapter B §10.101 Site and Development Requirements and Restrictions – Undesirable Site Features (Page 3 of 15 in Subchapter B). Rehabilitation developments with existing and ongoing assistance that are requesting to be exempt from the proximity to undesirable site features listed in this section must include a letter stating how funding the scope of work with housing tax credits is consistent with achieving at least one or more of the stated goals as outlined in the State’s Analysis of Impediments to Fair Housing Choice, or if the development is within the boundaries of a participating jurisdiction or entitlement community, as outlined in the local Analysis of Impediments to Fair Housing Choice.

4. Subchapter B §10.101 Site and Development Requirements and Restrictions – Undesirable Neighborhood Characteristics (Page 3 of 15 in Subchapter B). Changes to this section have been refined to help clarify the criteria by which staff and the Board evaluates a proposed site. In addition to the poverty rate of a census tract and facility listings within ASTM-required search distances as reflected in the Environmental Site Assessment, the rate of violent crimes as reported on Neighborhoodscout clarifies the boundaries of such crimes are within the census tract or within 1,000 feet of any census tract. Moreover, staff has proposed that a development site located within 1,000 feet of blight to require disclosure. Specifically, blight would be indicative of more than one structure, visible from the street, which has fallen into disrepair, overgrowth, and/or vandalism that it could commonly be regarded as blight or abandoned. While there was previously a disclosure fee associated with these undesirable characteristics that reduced the amount of the application fee required should an applicant desire to move forward, that fee is proposed to be eliminated. Other changes to this section elaborate further on the types of information that can be submitted to establish mitigation of such undesirable neighborhood characteristics. The factors to be considered by the Board should staff deem the site to be

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ineligible have been modified as well. Such factors include whether the development involves the preservation of existing occupied affordable housing with existing federal restrictions, a factual determination that such undesirable characteristics do not accurately represent the true nature of the situation to render the site ineligible and lastly, a determination that the development is necessary to affirmatively further fair housing.

5. Subchapter B §10.101 Site and Development Requirements and Restrictions – Common Amenities (Page 9 of 15 in Subchapter B). Some of the common amenities listed in this section include additional clarification with respect to how some of the amenities will be monitored by the Department. This section also clarifies how, in the case of second phase developments, the minimum points required would need to be met if the amenities are anticipated to be shared between the two developments.

6. Subchapter B §10.101 Site and Development Requirements and Restrictions – Tenant Supportive Services (Page 13 of 15 in Subchapter B). Clarifying language indicating that any services provided must be those that will directly benefit the target population of the development and that any services offered must be made accessible so that all tenants would be able to participate. This section also reflects modifications to some of the elderly-specific tenant services.

7. Subchapter C §10.204 Required Documentation for Application Submission. The format for the submission of the full application is proposed to be an electronic upload to the Department’s secure web transfer server instead of submitting a CD-R (page 1 of 24). This subchapter also outlines the process by which an area can request to be designated rural as required under HB 74. (Page 13 of 24). For applicants that propose a property tax exemption the application must include documentation that substantiates the reasonable expectation that the owner will qualify for such exemption (Page 21 of 24).

8. Subchapter G §10.901 Fee Schedule, Appeals and Other Provisions (Page 3 of 6 in

Subchapter G). The fee schedule removes the undesirable neighborhood characteristics disclosure fee and retains the fee related to deficiency requests by a third party (formerly known as the challenge process).

The Texas Department of Housing and Community Affairs (the “Department”) proposes new 10 TAC Chapter 10, Subchapter A §§10.1 - 10.4, concerning the Uniform Multifamily Rules. The purpose of the proposed new sections is to explain the purpose of the uniform multifamily rules, define terms that are used throughout the various subchapters and applicable to multifamily funding from the Department, and provide guidance on critical program dates associated with the multifamily funding the Department administers. The proposed repeal of existing Subchapter A is published concurrently with this rulemaking. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the new sections are in effect, enforcing or administering the new sections does not have any foreseeable implications related to costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of the new sections will be to explain the purpose of the uniform multifamily rules, define terms and provide guidance on program dates. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no new or additional economic effect on small or micro-businesses. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015 to October 15, 2015, to receive input on the new sections. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764, attn: Teresa Morales. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The new sections are proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the new sections are proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed new sections affect Chapter 2306 of the Texas Government Code, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The new sections affect no other statutes, articles or codes. 10.1 Purpose. 10.2 General. 10.3 Definitions. 10.4 Program Dates.

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UniformMultifamilyRules

SubchapterA–GeneralInformationandDefinitions

§10.1.Purpose.This chapter applies to an award ofmultifamily development funding or other assistanceincludingtheawardofHousingTaxCreditsbytheTexasDepartmentofHousingandCommunityAffairs(the"Department") and establishes the general requirements associated in making such awards. Applicantspursuing such assistance from theDepartment are required to certify, amongother things, that theyhavefamiliarized themselves with the rules that govern that specific program, including, but not limited to,Chapter1SubchapterCof this title(relating toPreviousParticipation),Chapter11of this title(relating toHousing Tax Credit Program Qualified Allocation Plan), Chapter 12 of this title (relating to MultifamilyHousingRevenueBondRules)andotherDepartmentrules.Thischapterdoesnotapplytoanyproject‐basedrentalassistanceoroperatingassistanceprogramsorfundsunlessincorporatedbyreferenceinwholeorinpart in a Notice of Funding Availability (“NOFA”) or rules for such a program except to the extent thatDevelopmentsreceivingsuchassistanceandotherwisesubjecttothischapterremainsubjecttothischapter.

§10.2.General.

(a) This chapter may not contemplate unforeseen situations that may arise, and in that regard theDepartment staff is to apply a reasonableness standard in the evaluation of Applications for multifamilydevelopmentfunding.Additionally,DirectLoanfundsandothernon‐HousingTaxCreditortaxexemptbondresourcesmay bemade available through a NOFA or other similar governing document that includes thebasicApplicationandfundingrequirements:

(1)deadlinesforfilingApplicationsandotherdocuments;(2)anyadditionalsubmissionrequirementsthatmaynotbeexplicitlyprovidedforinthischapter;(3)anyapplicableApplicationset‐asidesandrequirementsrelatedthereto;(4)awardlimitsperApplicationorApplicant;(5)anyfederalorstatelawsorregulationsthatmaysupersedetherequirementsofthischapter;and(6) other reasonable parameters or requirements necessary to implement a program or administerfundingeffectively.

(b)DueDiligenceandApplicantResponsibility.Departmentstaffmay,fromtimetotime,makeavailableforusebyApplicantsinformationandinformalguidanceintheformofreports,frequentlyaskedquestions,rentandincomelimits,andresponsestospecificquestions.TheDepartmentencouragescommunicationwithstaffinordertoclarifyanyissuesthatmaynotbefullyaddressedinthemultifamilyrulesormaybeunclearwhenapplied to specific facts.However,while these resources areoffered tohelpApplicantsprepare andsubmit accurate information, Applicants should also appreciate that this type of guidance is limited by itsnature and that staff will apply the multifamily rules to each specific situation as it is presented in thesubmittedApplication.Inaddition,althoughtheDepartmentmaycompiledatafromoutsidesourcesinorderto assist Applicants in the Application process, it remains the sole responsibility of the Applicant toindependently perform the necessary due diligence to research, confirm, and verify any data, opinions,interpretationsorotherinformationuponwhichApplicantbasesanApplication.

(c)BoardStandardsforReview.Someissuesmayrequireorbenefitfromboardreview.TheBoardisnotconstrained toaparticular standard,andwhile its actionsononematterarenotbindingas tohow itwilladdressanothermatter,theBoarddoesseektopromoteconsistencywithitspolicies,includingthepoliciessetforthinthischapter.

(d)CensusData.Where this chapter requires theuseof censusorAmericanCommunitySurveydata, theDepartmentshallusethemostcurrentdataavailableasofOctober1,20152014,unlessspecificallyotherwiseprovided in federal or state law or in the rules. The availability of more current data shall generally be

Chapter10SubchapterA 2015

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disregarded. For Rural Area and Urban Area designations, the Department shall use in establishing thedesignations, the U.S. Census Bureau's Topographically Integrated Geographic Encoding and Referencing("TIGER")shapefilesapplicableforthepopulationdatasetusedinmakingsuchdesignations.

(e)Public InformationRequests. Pursuant to Texas Government Code, §2306.6717, any pre‐applicationand any full Application, including all supporting documents and exhibits, must bemade available to thepublic,intheirentirety,ontheDepartment'swebsite.Thefilingofapre‐applicationorApplicationwiththeDepartmentshallbedeemedasconsenttothereleaseofanyandallinformationcontainedtherein,includingsupportingdocumentsandexhibits,andasawaiverofanyoftheapplicableprovisionsofTexasGovernmentCode,Chapter552,withtheexceptionofanysuchprovisionsthatareconsideredbylawasnotsubjecttoawaiver.

(f) Responsibilities of Municipalities and Counties. In providing resolutions regarding housing de‐concentrationissues,thresholdrequirements,orscoringcriteria,municipalitiesandcountiesshouldconsulttheirownstaffandlegalcounselastowhethersuchresolutionwillbeconsistentwithFairHousinglawsasthey may apply, including, as applicable, consistency with any Fair Housing Activity Statement‐Texas(“FHAST”) formon file, any currentAnalysis of Impediments toFairHousingChoice, or any currentplanssuchasoneyearactionplansor fiveyearconsolidatedplans forHUDblockgrant funds, suchasHOMEorCDBGfunds.

(g) Deadlines. Where a specific date or deadline is identified in this chapter, the information ordocumentationsubject to thedeadlinemustbesubmittedonorbefore5:00p.m.Austin local timeCentralTimeZoneonthedayofthedeadline.Ifthedeadlinefallsonaweekendorholiday,thedeadlineis5:00p.m.AustinlocaltimeonthenextdaywhichisnotaweekendorholidayandonwhichtheDepartmentisopenforgeneraloperation.

§10.3.Definitions.

(a)Termsdefined in this chapter apply to theHousingTax Credit Program,MultifamilyHousingRevenueBondProgram,HOMEProgramandanyotherprograms for thedevelopmentofaffordable rentalpropertyadministeredby theDepartment andasmaybedefined in this title.Any capitalized termsnot specificallymentioned in thissectionoranysectionreferenced in thisdocumentshallhave themeaningasdefined inTexasGovernmentCodeChapter2306, InternalRevenueCode(the"Code")§42, theHOMEFinalRule,andotherDepartmentrules,asapplicable.

(1)AdaptiveReuse‐‐Thechange‐in‐useofanexistingbuildingnot,atthetimeofApplication,beingused, inwholeorinpart,forresidentialpurposes(e.g.,school,warehouse,office,hospital,hotel,etc.),intoabuildingwhichwillbeused, inwholeor inpart, for residentialpurposes.Adaptive reuse requires that theexteriorwallsoftheexistingbuildingremaininplace.Allunitsmustbecontainedwithintheoriginalexteriorwallsoftheexistingbuilding.Porchesandpatiosmayprotrudebeyondtheexteriorwalls.Ancillarynon‐residentialbuildings, suchasaclubhouse, leasingofficeand/oramenitycentermaybenewlyconstructedoutside thewallsoftheexistingbuildingorasdetachedbuildingsontheDevelopmentSite.

(2) Administrative Deficiencies‐‐Information requested by Department staff that is required to clarify orcorrect one or more inconsistencies or to provide non‐material missing information in the originalApplicationortoassiststaffinevaluatingtheApplicationthat,intheDepartmentstaff'sreasonablejudgment,may be cured by supplemental information or explanation which will not necessitate a substantialreassessmentorre‐evaluationoftheApplication.AdministrativeDeficienciesmaybeissuedatanytimewhiletheApplicationorContractisunderconsiderationbytheDepartment,includingatanytimewhilereviewingperformance 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 tocompliance.


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(3) Affiliate‐‐An individual, corporation, partnership, joint venture, limited liability company, trust, estate,association,cooperativeorotherorganizationorentityofanynaturewhatsoeverthatdirectly,orindirectlythroughoneormoreintermediaries,hasControlof, isControlledby,orisundercommonControlwithanyotherPerson.AllentitiesthatshareaPrincipalareAffiliates.

(4) Affordability Period‐‐The Affordability Period commences as specified in the Land Use RestrictionAgreement(LURA)orfederalregulation,orcommencesonthefirstdayoftheCompliancePeriodasdefinedby the Code §42(i)(1), and continues through the appropriate program's affordability requirements orterminationoftheLURA,whicheverisearlier.ThetermoftheAffordabilityPeriodshallbeimposedbytheLURAorotherdeedrestrictionandmaybeterminateduponforeclosureordeedinlieuofforeclosure.TheDepartmentreservestherighttoextendtheAffordabilityPeriodforHOMEorNSPDevelopmentsthatfailtomeet program requirements. During the Affordability Period, the Department shall monitor to ensurecompliancewithprogrammaticrulesasapplicable,regulations,andApplicationrepresentations.

(5)ApplicablePercentage‐‐ThepercentageusedtodeterminetheamountoftheHousingTaxCreditforanyDevelopment,asdefinedmorefullyintheCode§42(b).

(A)ForpurposesoftheApplication,theApplicablePercentagewillbeprojectedat:

(i)ninepercentifsuchtimingisdeemedappropriatebytheDepartmentoriftheabilitytoclaimthefull9percentcreditisextendedbytheU.S.CongresspriortoMarch1,2016February27,2015;

(ii) fortybasispointsover the current applicablepercentage for70percentpresent value credits,pursuant to §42(b) of the Code for the month in which the Application is submitted to theDepartment;or

(iii)fifteenbasispointsoverthecurrentapplicablepercentagefor30percentpresentvaluecredits,unlessfixedbyCongress,pursuantto§42(b)oftheCodeforthemonthinwhichtheApplicationissubmittedtotheDepartment.

(B)Forpurposesofmakingacreditrecommendationatanyothertime,theApplicablePercentagewillbebasedinorderofpriorityon:

(i)thepercentageindicatedintheAgreementandElectionStatement,ifexecuted;or

(ii) the actual applicable percentage as determined by the Code §42(b), if all or part of theDevelopmenthasbeenplacedinserviceandforanybuildingsnotplacedinservicethepercentagewillbetheactualpercentageasdeterminedbytheCode§42(b)forthemostcurrentmonth;or

(iii)thepercentageascalculatedinsubparagraph(A)ofthisparagraphiftheAgreementandElectionStatementhasnotbeenexecutedandnobuildingshavebeenplacedinservice.

(6)Applicant‐‐meansany individualoragroupof individualsandanyAffiliateswhofileanApplicationforfundingortaxcreditssubjecttotherequirementsofthischapteror10TACChapters11or12andwhomaycontemplatethelaterformationofoneormorebusinessentities,suchasalimitedpartnership,thatistobeengagedintheownershipofaDevelopment. InadministeringtheapplicationprocesstheDepartmentstaffwillassumethattheapplicantwillbeabletoformanysuchentitiesandthatallnecessaryrights,powers,andprivilegesincluding,butnotlimitedto,sitecontrolwillbetransferabletothatentity. Theformationoftheownershipentity,qualificationtodobusiness(ifneeded),andtransferofsuchrights,powers,andprivilegesmustbeaccomplishedasrequiredinthisChapterand10TACChapters11and12,asapplicable.


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(7)ApplicationAcceptancePeriod‐‐ThatperiodoftimeduringwhichApplicationsmaybesubmittedtotheDepartment. For Tax‐Exempt Bond Developments it is the date the Application is submitted to theDepartment.

(8)AwardLetterandLoanTermSheet‐‐AdocumentthatmaybeissuedtoanawardeeofaDirectLoanbeforetheissuanceofaCommitmentand/orContractwhichpreliminarilysetsforththetermsandconditionsunderwhich the Direct Loan will be made available. An Award Letter and Loan Term Sheet will typically becontingentontheawardeesatisfyingcertainrequirementspriortoexecutingaCommitmentand/orContract.

(9)BankTrustee‐‐AfederallyinsuredbankwiththeabilitytoexercisetrustpowersintheStateofTexas.

(10)Bedroom‐‐AportionofaUnitwhichisnolessthan100squarefeet;hasnowidthorlengthlessthan8feet; is self containedwithadoor (or theUnit contains a second level sleeping areaof100 square feetormore);hasatleastonewindowthatprovidesexterioraccess;andhasatleastoneclosetthatisnotlessthan2feetdeepand3 feetwideandhighenough toaccommodate5 feetofhangingspace.Aden, studyorothersimilarspacethatcouldreasonablyfunctionasabedroomandmeetsthisdefinitionisconsideredabedroom.

(11)BreakevenOccupancy‐‐Theoccupancylevelatwhichrentalincomeplussecondaryincomeisequaltoalloperatingexpenses,includingreplacementreservesandtaxes,andmandatorydebtservicerequirementsforaDevelopment.

(12)BuildingCosts‐‐Costofthematerialsandlaborfortheverticalconstructionorrehabilitationofbuildingsandamenitystructures.

(13)CarryoverAllocation‐‐AnallocationofcurrentyeartaxcreditauthoritybytheDepartmentpursuanttotheprovisionsof§42(h)(1)(C)oftheCodeandU.S.TreasuryRegulations,§1.42‐6.

(14) Carryover Allocation Agreement‐‐A document issued by the Department, and executed by theDevelopmentOwner,pursuantto§10.402(f)ofthischapter(relatingtoHousingTaxCreditandTaxExemptBondDevelopments).

(15)CashFlow‐‐Thefundsavailablefromoperationsafterallexpensesanddebtservicerequiredtobepaidhavebeenconsidered.

(16) Certificate of Reservation‐‐The notice given by the Texas Bond Review Board (“TBRB”) to an issuerreservingaspecificamountofthestateceilingforaspecificissueofbonds.

(17)Code‐‐TheInternalRevenueCodeof1986,asamendedfromtimetotime,togetherwithanyapplicableregulations, rules, rulings, revenue procedures, information statements or other official pronouncementsissuedthereunderbytheU.S.DepartmentoftheTreasuryortheInternalRevenueService(“IRS”).

(18) Code of Federal Regulations (“CFR”)‐‐The codification of the general and permanent rules andregulationsofthefederalgovernmentasadoptedandpublishedintheFederalRegister.

(19)Colonia‐‐Ageographicarea that is located ina countysomepartofwhich iswithinone‐hundred fifty(150)milesoftheinternationalborderofthisstate,thatconsistsofeleven(11)ormoredwellingsthatarelocated inproximity toeachother inanarea thatmaybedescribedasacommunityorneighborhood,andthat:

(A)hasamajoritypopulationcomposedofindividualsandfamiliesoflow‐incomeandverylow‐income,basedonthefederalOfficeofManagementandBudgetpovertyindex,andmeetsthequalificationsofaneconomicallydistressedareaunderTexasWaterCode,§17.921;or


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(B)hasthephysicalandeconomiccharacteristicsofacolonia,asdeterminedbytheDepartment,andisageographicareaencompassingnomore than two (2) squaremiles. Factors tobe consideredby theDepartment include, but are not limited to, ability to access basic utilities and boundaries that maydefinecommunitiesorneighborhoods.ApplicantswillberequiredtodefinethegeographicareatobeevaluatedbytheDepartment.

(1920)Commitment(alsoreferredtoasContract)‐‐Alegallybindingwrittencontract,settingforththetermsandconditionsunderwhichhousingtaxcredits,loans,grantsorothersourcesoffundsorfinancialassistancefromtheDepartmentwillbemadeavailable.

(201) Commitment of Funds‐‐Occurs after the Development is approved by the Board and once aCommitmentorAwardLetterandLoanTermSheet isexecutedbetweentheDepartmentandDevelopmentOwner. For Direct Loan Programs, this process is distinct from “Committing to a specific local project” asdefinedin24CFRPart92,whichmayoccurwhentheactivityissetupinthedisbursementandinformationsystem established by HUD; known as the Integrated Disbursement and Information System (IDIS). TheDepartment'scommitmentoffundsmaynotalignwithcommitmentsmadebyotherfinancingparties.

(212)Committee‐‐SeeExecutiveAwardandReviewAdvisoryCommittee.

(223)ComparableUnit‐‐AUnit,whencomparedtothesubjectUnit,issimilarinnetrentablesquarefootage,numberofbedrooms,numberofbathrooms,overallcondition,location(withrespecttothesubjectPropertybased on proximity to employment centers, amenities, services and travel patterns), age, unit amenities,utilitystructure,andcommonamenities.

(234)CompetitiveHousingTaxCredits(“HTC”)‐‐TaxcreditsavailablefromtheStateHousingCreditCeiling.

(245)CompliancePeriod‐‐WithrespecttoabuildingfinancedbyHousingTaxCredits, theperiodof fifteen(15)taxableyears,beginningwiththefirsttaxableyearofthecreditperiodpursuantto§42(i)(1)oftheCode.

(256)ContinuouslyOccupied‐‐ThesamehouseholdhasresidedintheUnitforatleasttwelve(12)months.

(267)Contract‐‐SeeCommitment.

(27)ContractRent‐‐Netrentbaseduponcurrentandexecutedrentalassistancecontract(s),typicallywithafederal,stateorlocalgovernmentalagency.

(28)Contractor‐‐SeeGeneralContractor.

(29)Control(includingtheterms"Controlling,""Controlledby,"and/or"undercommonControlwith")‐‐Thepower,ability,orauthority,actingaloneor inconcertwithothers,directlyor indirectly, tomanage,direct,superintend, restrict, regulate, govern, administer, oroversee. Controlling entitiesof apartnership includethegeneralpartners,speciallimitedpartnerswhenapplicable,butnotinvestorlimitedpartnerswhodonotpossessotherfactorsorattributesthatgivethemControl.Controllingentitiesofalimitedliabilitycompanyinclude but are not limited to themanagers,managingmembers, anymemberswith 10 percent ormoreownership of the limited liability company, and anymembers with authority similar to that of a generalpartner ina limitedpartnership,butnot investormemberswhodonotpossessother factorsorattributesthatgivethemControl.Controllingindividualsorentitiesofacorporation,includingnon‐profitcorporations,includevotingmembersofthecorporation’sboard,whetherornotanyonememberdidnotparticipateinaparticular decision due to recusal or absence. Multiple Persons may be deemed to have Controlsimultaneously.


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(30)ContractRent‐‐Netrentbaseduponcurrentandexecutedrentalassistancecontract(s),typicallywithafederal,stateorlocalgovernmentalagency.

(301)CreditUnderwritingAnalysisReport‐‐Sometimesreferred toas the"Report."Adecisionmaking toolusedbytheDepartmentandBoardcontainingasynopsisandreconciliationof theApplication informationsubmittedbytheApplicant.

(312) Debt Coverage Ratio (“DCR”)‐‐Sometimes referred to as the "Debt Coverage" or "Debt ServiceCoverage."CalculatedasNetOperatingIncomeforanyperioddividedbyscheduleddebtservicerequiredtobepaidduringthesameperiod.

(323)DeferredDeveloper Fee‐‐The portion of theDeveloper Fee used as a source of funds to finance thedevelopmentandconstructionoftheProperty.

(334)DeobligatedFunds‐‐The funds releasedby theDevelopmentOwneror recoveredby theDepartmentcanceling a Contract or award involving some or all of a contractual financial obligation between theDepartmentandaDevelopmentOwnerorApplicant.

(345)DeterminationNotice‐‐AnoticeissuedbytheDepartmenttotheDevelopmentOwnerofaTax‐ExemptBondDevelopmentwhichspecifiestheDepartment'sdeterminationastotheamountoftaxcreditsthattheDevelopmentmaybeeligibletoclaimpursuantto§42(m)(1)(D)oftheCode.

(356)Developer‐‐AnyPersonenteringintoacontractualrelationshipwiththeOwnertoprovideDeveloperServiceswithrespecttotheDevelopmentandreceivingafeeforsuchservicesandanyotherPersonreceivingany portion of a developer fee, whether by subcontract or otherwise, except if the Person is acting as aconsultantwithnoControlandreceivinglessthan10percentofthetotalDeveloperfee.TheDevelopermayormaynotbeaRelatedPartyorPrincipaloftheOwner.

(367) Developer Fee‐‐Compensation in amounts defined in §10.302(e)(7) of this chapter (relating toUnderwritingRulesandGuidelines)paidbytheOwnertotheDeveloperforDeveloperServicesinclusiveofcompensation to a Development Consultant(s), Development Team member or any subcontractor thatperforms Developer Services or provides guaranties on behalf of the Owner will be characterized asDeveloperFee.

(378) Developer Services‐‐A scope of work relating to the duties, activities and responsibilities for pre‐development, development, design coordination, and construction oversight of the Property generallyincludingbutnotlimitedto:

(A)siteselectionandpurchaseorleasecontractnegotiation;(B) identifying and negotiating sources of construction and permanent financing, including financingprovidedbytheDepartment;(C) coordination and administration of activities, including the filing of applications to secure suchfinancing;(D)coordinationandadministrationofgovernmentalpermits,andapprovalsrequiredforconstructionandoperation;(E) selection and coordination of development consultants including architect(s), engineer(s), third‐partyreportproviders,attorneys,andotherdesignorfeasibilityconsultants;(F)selectionandcoordinationoftheGeneralContractorandconstructioncontract(s);(G)constructionoversight;(H)otherconsultativeservicestoandfortheOwner;(I)guaranties,financialorcreditsupportifaRelatedParty;and


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(J)anyothercustomaryandsimilaractivitiesdeterminedbytheDepartmenttobeDeveloperServices.

(38)Development‐‐Aresidentialrentalhousingprojectthatconsistsofoneormorebuildingsundercommonownership and financed under a common plan which has applied for Department funds. This includes aproject consistingofmultiplebuildings thatare locatedon scattered sitesandcontainonly rent restrictedunits.(§2306.6702)

(39)DevelopmentSite‐‐Thearea,orifscatteredsite,areasonwhichtheDevelopmentisproposedandtobeencumberedbyaLURA.

(40)Development‐‐Aresidentialrentalhousingprojectthatconsistsofoneormorebuildingsundercommonownership and financed under a common plan which has applied for Department funds. This includes aproject consistingofmultiplebuildings thatare locatedon scattered sitesandcontainonly rent restrictedunits.(§2306.6702)

(3941) Development Consultant or Consultant‐‐Any Person (with or without ownership interest in theDevelopment)whoprovidesprofessionalorconsultingservicesrelatingtothefilingofanApplication,orpostawarddocumentsasrequiredbytheprogram.

(402)DevelopmentOwner(alsoreferredtoas"Owner")‐‐AnyPerson,GeneralPartner,orAffiliateofaPersonwho owns or proposes a Development or expects to acquire Control of a Development under a purchasecontractorgroundleaseapprovedbytheDepartmentandisresponsibleforperformingundertheallocationand/orCommitmentwiththeDepartment.(§2306.6702)

(41)DevelopmentSite‐‐Thearea,orifscatteredsite,areasonwhichtheDevelopmentisproposedandtobeencumberedbyaLURA.

(423)DevelopmentTeam‐‐AllPersonsandAffiliatesthereofthatplayaroleinthedevelopment,construction,rehabilitation, management and/or continuing operation of the subject Development, including anyDevelopmentConsultantandGuarantor.

(434) Direct Loan‐‐Funds provided through the HOME Program, Neighborhood Stabilization Program, orHousingTrustFundorotherprogramavailablethroughtheDepartmentformultifamilydevelopment.DirectLoans may also include deferred forgivable loans or other similar direct funding by the Department,regardlessifitisrequiredtoberepaid.Thetax‐exemptbondprogramisspecificallyexcluded.

(445)EconomicallyDistressedArea‐‐Anarea that is inacensus tract thathasamedianhousehold incomethatis75percentorlessofthestatewidemedianhouseholdincomeandinamunicipalityor,ifnotwithinamunicipality, in a county that has been awarded funds under the EconomicallyDistressed Areas ProgramadministeredbytheTexasWaterDevelopmentBoardwithinthefive(5)yearsendingatthebeginningoftheApplicationAcceptancePeriod.Notwithstandingallotherrequirements,forfundsawardedtoanothertypeofpolitical subdivision (e.g., a water district), the Development Site must be within the jurisdiction of thepoliticalsubdivision.

(456)EffectiveGrossIncome(“EGI”)‐‐ThesumtotalofallsourcesofanticipatedoractualincomeforarentalDevelopment, less vacancy and collection loss, leasing concessions, and rental income from employee‐occupiedunitsthatisnotanticipatedtobechargedorcollected.

(467)EfficiencyUnit‐‐AUnitwithoutaseparatelyenclosedBedroomdesignedprincipallyforusebyasingleperson.


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(47)ElderlyDevelopment‐‐aDevelopmentthat issubjecttoanElderlyLimitationoraDevelopmentthat issubjecttoanElderlyPreference.

(A)ElderlyLimitationDevelopment‐‐ADevelopmentsubjecttoan“elderlylimitation”isaDevelopmentthatmeetstherequirementsoftheHousingforOlderPersonsAct(“HOPA”)undertheFairHousingActandreceivesno funding that requires leasing topersonsother than theelderly (unless the funding isfrom a federal program for which the Secretary of HUD has confirmed that it may operate as aDevelopmentthatmeetstherequirementsofHOPA);or

(B) Elderly Preference Development—A property receiving HUD funding and certain other types offederal assistance is aDevelopment subject to an “elderly preference.” ADevelopment subject to anElderly Preferencemust lease to other populations, including inmany cases elderly householdswithchildren. A property that is deemed to be a Development subject to an Elderly Preferencemust bedevelopedandoperated inamannerwhichwillenable it toservereasonable foreseeabledemandforhouseholdswithchildren,including,butnotlimitedto,makingprovisionforsuchindevelopingitsunitmixandamenities.

(48)EligibleHardCosts‐‐HardCosts includable inEligibleBasis forthepurposesofdeterminingaHousingCreditAllocation.

(49) Environmental Site Assessment (“ESA”)‐‐An environmental report that conforms to the StandardPractice for Environmental Site Assessments: Phase I Assessment Process (ASTM StandardDesignation: E1527)andconductedinaccordancewith§10.305ofthischapter(relatingtoEnvironmentalSiteAssessmentRulesandGuidelines)asitrelatestoaspecificDevelopment.

(50)ExecutiveAwardandReviewAdvisoryCommittee(“EARAC”alsoreferredtoasthe"Committee")‐‐TheDepartmentcommitteecreatedunderTexasGovernmentCode§2306.1112.

(51) Existing Residential Development‐‐Any Development Sitewhich contains existing residential units atanytimeafterthebeginningoftheApplicationAcceptancePeriod.

(52) Extended Use Period‐‐With respect to an HTC building, the period beginning on the first day of theCompliancePeriodandendingthelaterof:

(A)thedatespecifiedintheLandUseRestrictionAgreementor(B)thedatewhichisfifteen(15)yearsafterthecloseoftheCompliancePeriod.

(53) First Lien Lender‐‐A lender whose lien has first priority as a matter of law or by operation of asubordinationagreementorotherintercreditoragreement.

(54)GeneralContractor(including"Contractor")‐‐OnewhocontractsfortheconstructionorrehabilitationofanentireDevelopment,ratherthanaportionofthework.TheGeneralContractorhiressubcontractors,suchasplumbingcontractors,electricalcontractors,etc.,coordinatesallwork,andisresponsibleforpaymenttothesubcontractors.AprimesubcontractorwillalsobetreatedasaGeneralContractor,andanyfeespayableto theprimesubcontractorwill be treatedas fees to theGeneralContractor, in the scenariosdescribed insubparagraphs(A)and(B)ofthisparagraph:

(A) any subcontractor,material supplier, or equipment lessor receivingmore than 50 percent of thecontractsumintheconstructioncontractwillbedeemedaprimesubcontractor;or


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(B)ifmorethan75percentofthecontractsumintheconstructioncontractissubcontractedtothreeorfewer subcontractors,material suppliers, and equipment lessors, such partieswill be deemed primesubcontractors.

(55)GeneralPartner‐‐Anypersonorentityidentifiedasageneralpartnerinacertificateofformationforthepartnership that is the Development Owner and that Controls the partnership. Where a limited liabilitycorporation is the legal structure employed rather than a limited partnership, the manager or managingmemberofthat limitedliabilitycorporationisdeemed, forthepurposesoftheserules, tobethefunctionalequivalentofageneralpartner.

(56) Governing Body‐‐The elected or appointed body of public or tribal officials, responsible for theenactment, implementation, and enforcement of local rules and the implementation and enforcement ofapplicablelawsforitsrespectivejurisdiction.

(57) Governmental Entity‐‐Includes federal, state or local agencies, departments, boards, bureaus,commissions, authorities, and political subdivisions, special districts, tribal governments andother similarentities.

(58)GrossCaptureRate‐‐CalculatedastheRelevantSupplydividedbytheGrossDemand.

(59) Gross Demand‐‐The sum of Potential Demand from the PrimaryMarket Area (“PMA”), demand fromothersources,andPotentialDemandfromaSecondaryMarketArea(“SMA”)totheextentthatSMAdemanddoesnotexceed25percentofGrossDemand.

(60) Gross Program Rent‐‐Maximum rent limits based upon the tables promulgated by the Department'sdivision responsible for compliance, which are developed by program and by county or MetropolitanStatisticalArea(“MSA”)orPrimaryMetropolitanStatisticalArea(“PMSA”)ornationalnon‐metroarea.

(61)Guarantor‐‐AnyPersonthatprovides,orisanticipatedtoprovide,aguarantyforalloraportionoftheequityordebtfinancingfortheDevelopment.

(62)HTCDevelopment(alsoreferredtoas"HTCProperty")‐‐ADevelopmentsubject toanactiveLURAforHousingTaxCreditsallocatedbytheDepartment.

(63)HTCProperty‐‐SeeHTCDevelopment.

(64) Hard Costs‐‐The sum total of Building Costs, Site Work costs, Off‐Site Construction costs andcontingency.

(65) Historically Underutilized Businesses (“HUB”)‐‐An entity that is certified as such under TexasGovernmentCode,Chapter2161bytheStateofTexas.

(66)HousingContractSystem(“HCS”)‐‐TheelectronicinformationsystemestablishedbytheDepartmentfortracking, funding, and reporting Department Contracts and Developments. The HCS is primarily used forDirectLoanProgramsadministeredbytheDepartment.

(67)HousingCreditAllocation‐‐AnallocationofHousingTaxCreditsby theDepartment toaDevelopmentOwnerforaspecificApplicationinaccordancewiththeprovisionsofthischapterandChapter11ofthistitle(relatingtoHousingTaxCreditProgramQualifiedAllocationPlan).


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(68)HousingCreditAllocationAmount‐‐WithrespecttoaDevelopmentorabuildingwithinaDevelopment,theamountofHousingTaxCreditstheDepartmentdeterminestobenecessaryforthefinancialfeasibilityoftheDevelopmentanditsviabilityasaDevelopmentthroughouttheAffordabilityPeriodandwhichtheBoardallocatestotheDevelopment.

(69)HousingQualityStandards(“HQS”)‐‐Thepropertyconditionstandardsdescribedin24CFR§982.401.

(70)InitialAffordabilityPeriod‐‐TheCompliancePeriodorsuchlongerperiodasshallhavebeenelectedbythe Owner as theminimum period for which Units in the Development shall be retained for low‐incometenantsandrentrestricted,assetforthintheLURA.

(71) Integrated Disbursement and Information System (“IDIS”)‐‐The electronic grants managementinformationsystemestablishedbyHUD tobeused for trackingandreportingHOMEfundingandprogressandwhichmaybeusedforothersourcesoffundsasestablishedbyHUD.

(72) Land Use Restriction Agreement (“LURA”)‐‐An agreement, regardless of its title, between theDepartment and the Development Ownerwhich is a binding covenant upon the Development Owner andsuccessorsininterest,that,whenrecorded,encumberstheDevelopmentwithrespecttotherequirementsoftheprogramsforwhichitreceivesfunds.(§2306.6702)

(73)Low‐IncomeUnit‐‐AUnitthatisintendedtoberestrictedforoccupancybyanincomeeligiblehousehold,asdefinedbytheDepartmentutilizingitspublishedincomelimits.

(74)ManagingGeneralPartner‐‐Ageneralpartnerofapartnership(or,asprovidedforinparagraph(55)ofthissubsection,itsfunctionalequivalent)thatisvestedwiththeauthoritytotakeactionsthatarebindingonbehalf of the partnership and the other partners. The termManaging General Partner can also refer to amanagerormanagingmemberofalimitedliabilitycompanywheresodesignatedtobindthelimitedliabilitycompanyanditsmembersunderitsAgreementoranyotherpersonthathassuchpowersinfact,regardlessoftheirorganizationaltitle.

(75)MarketAnalysis‐‐Sometimesreferredtoas"MarketStudy."Anevaluationoftheeconomicconditionsofsupply,demandandrental rates conducted inaccordancewith§10.303of thischapter (relating toMarketAnalysisRulesandGuidelines)asitrelatestoaspecificDevelopment.

(76)MarketAnalyst‐‐Arealestateappraiserorotherprofessionalfamiliarwiththesubjectproperty'smarketareawhopreparesaMarketAnalysis.

(77)MarketRent‐‐TheachievablerentatthesubjectPropertyforaunitwithoutrentandincomerestrictionsdeterminedbytheMarketAnalystorUnderwriterafteradjustmentsaremadetoactualrentsonComparableUnitstoaccountfordifferencesinnetrentablesquarefootage,functionality,overallcondition,location(withrespecttothesubjectPropertybasedonproximitytoprimaryemploymentcenters,amenities,servicesandtravel patterns), age, unit amenities, utility structure, and common area amenities. The achievable rentconclusionmustalsoconsidertheproportionofmarketunitstototalunitsproposedinthesubjectProperty.

(78)MarketStudy‐‐SeeMarketAnalysis.

(79)MaterialDeficiency‐‐AnydeficiencyinanApplicationorotherdocumentationthatexceedsthescopeofanAdministrativeDeficiency.MayincludeagroupofAdministrativeDeficienciesthat,takentogether,createtheneedforasubstantialre‐assessmentorreevaluationoftheApplication.


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(80)MultifamilyProgramsProceduresManual‐‐ThemanualproducedandamendedfromtimetotimebytheDepartmentwhich reiterates and implements the rules andprovides guidance for the filingofmultifamilyrelateddocuments.

(81) Net Operating Income (“NOI”)‐‐The income remaining after all operating expenses, includingreplacementreservesandtaxesthathavebeenpaid.

(82)NetProgramRent‐‐CalculatedasGrossProgramRentlessUtilityAllowance.

(83)NetRentableArea (“NRA”)‐‐The unit space that is available exclusively to the tenant and is typicallyheatedandcooledbyamechanicalHVACsystem.NRAismeasuredtotheoutsideofthestudsofaunitortothemiddleofwallsincommonwithotherunits.NRAdoesnotincludecommonhallways,stairwells,elevatorshafts,janitorclosets,electricalclosets,balconies,porches,patios,orotherareasnotactuallyavailabletothetenantsfortheirfurnishings,nordoesNRAincludetheenclosingwallsofsuchareas.

(84) Non‐HTC Development‐‐Sometimes referred to as Non‐HTC Property. Any Development not utilizingHousingTaxCreditsorExchangefunds.

(85) Notice of Funding Availability (“NOFA”)‐‐A notice issued by the Department that announces fundingavailability,usuallyonacompetitivebasis,formultifamilyrentalprogramsrequiringApplicationsubmissionfrompotentialApplicants.

(86)Off‐SiteConstruction‐‐ImprovementsuptotheDevelopmentSitesuchasthecostofroads,water,sewer,andotherutilitiestoprovideaccesstoandservicetheSite.

(87)OfficeofRuralAffairs‐‐Anofficeestablishedwithin theTexasDepartmentofAgriculture; formerly theTexasDepartmentofRuralAffairs.

(88)OneYearPeriod(“1YP”)‐‐TheperiodcommencingonthedateonwhichtheDepartmentandtheOwneragreetotheQualifiedContractpriceinwritingandcontinuingfortwelve(12)calendarmonths.

(89)Owner‐‐SeeDevelopmentOwner.

(90) Person‐‐Without limitation, any natural person, corporation, partnership, limited partnership, jointventure, limited liability company, trust, estate, association, cooperative, government, political subdivision,agencyor instrumentalityor other organizationor entity of anynaturewhatsoever, and shall include anygroupofPersonsactinginconcerttowardacommongoal,includingtheindividualmembersofthegroup.

(91)PersonswithDisabilities‐‐Withrespecttoanindividual,meansthatsuchpersonhas:

(A)aphysicalormental impairmentthatsubstantially limitsoneormoremajor lifeactivitiesofsuchindividual;(B)arecordofsuchanimpairment;or(C)isregardedashavingsuchanimpairment,toincludepersonswithseverementalillnessandpersonswithsubstanceabusedisorders.

(92)PhysicalNeedsAssessment‐‐SeePropertyConditionAssessment.

(93) Place‐‐An area defined as such by the United States Census Bureau, which, in general, includes anincorporatedcity, town,orvillage, aswell asunincorporatedareasknowascensusdesignatedplaces.TheDepartmentmayprovidealistofPlacesforreference.


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(94) Post Carryover Activities Manual‐‐The manual produced and amended from time to time by theDepartmentwhichexplainstherequirementsandprovidesguidanceforthefilingofpost‐carryoveractivities,or for Tax Exempt Bond Developments, the requirements and guidance for post Determination Noticeactivities.

(95)PotentialDemand‐‐Thenumberofincome‐eligible,age‐,size‐,andtenure‐appropriatetargethouseholdsinthedesignatedmarketareaattheproposedplacementinservicedate.

(96) PrimaryMarket (“PMA”)‐‐Sometimes referred to as "PrimaryMarket Area." The area defined by theMarketAnalystasdescribed in§10.303of this chapter fromwhichaproposedorexistingDevelopment ismostlikelytodrawthemajorityofitsprospectivetenantsorhomebuyers.

(97)PrimaryMarketArea(“PMA”)‐‐SeePrimaryMarket.

(98) Principal‐‐Persons that will exercise Control (which includes voting board members pursuant to§10.3(a)(29)of thischapter)overapartnership, corporation, limited liability company, trust,oranyotherprivateentity.Inthecaseof:

(A)partnerships,Principals includeallGeneralPartners, special limitedpartners, andPrincipalswithownershipinterest;

(B)corporations,Principalsincludeanyofficerauthorizedbytheboardofdirectors,regardlessoftitle,toactonbehalfofthecorporation,includingbutnotlimitedtothepresident,vicepresident,secretary,treasurer,andallotherexecutiveofficers,andeachstockholderhavinga10percentormoreinterestinthecorporation,andanyindividualwhohasControlwithrespecttosuchstockholder;and

(C)limitedliabilitycompanies,Principalsincludeallmanagers,managingmembers,membershavinga10percentormoreinterestinthelimitedliabilitycompany,anyindividualControllingsuchmembers,oranyofficerauthorizedtoactonbehalfofthelimitedliabilitycompany.

(99)ProFormaRent‐‐ForarestrictedUnit, the lesserof theNetProgramRentor theMarketRent.Foranunrestrictedunit,theMarketRent.ContractRents,ifapplicable,willbeusedastheProFormaRent.

(100) Property‐‐The real estate and all improvements thereon which are the subject of the Application(includingallitemsofpersonalpropertyaffixedorrelatedthereto),whethercurrentlyexistingorproposedtobebuiltthereoninconnectionwiththeApplication.

(101) Property Condition Assessment (“PCA”)‐‐Sometimes referred to as "Physical Needs Assessment,""ProjectCapitalNeedsAssessment,"or"PropertyConditionReport."ThePCAprovidesanevaluationofthephysical conditionof an existingProperty to evaluate the immediate cost to rehabilitate and todeterminecostsoffuturecapitalimprovementstomaintaintheProperty.ThePCAmustbepreparedinaccordancewith§10.306 of this chapter (relating to Property Condition Assessment Guidelines) as it relates to a specificDevelopment.

(102)QualifiedContract(“QC”)‐‐Abonafidecontracttoacquirethenon‐low‐incomeportionofthebuildingforfairmarketvalueandthelow‐incomeportionofthebuildingforanamountnotlessthantheApplicableFraction(specifiedintheLURA)ofthecalculationasdefinedwithin§42(h)(6)(F)oftheCode.

(103)QualifiedContractPrice("QCPrice")‐‐CalculatedpurchasepriceoftheDevelopmentasdefinedwithin§42(h)(6)(F)oftheCodeandasfurtherdelineatedin§10.408ofthischapter(relatingtoQualifiedContractRequirements).


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(104)QualifiedContractRequest(“Request”)‐‐ArequestcontainingallinformationanditemsrequiredbytheDepartmentrelatingtoaQualifiedContract.

(105)QualifiedNonprofitDevelopment‐‐ADevelopmentwhichmeets therequirementsof§42(h)(5)of theCode, includes the required involvementof aQualifiedNonprofitOrganization, and is seekingCompetitiveHousingTaxCredits.

(105)QualifiedElderlyDevelopment‐‐ADevelopmentwhichisoperatedwithproperty‐wideagerestrictionsfor occupancy and which meets the requirements of "housing for older persons" under the federal FairHousingAct.TheagerestrictionsassociatedwithorcharacterofsuchaDevelopmentaresometimesreferredtoas"QualifiedElderly".

(106)QualifiedNonprofitOrganization‐‐Anorganizationthatmeetstherequirementsof§42(h)(5)(C)oftheCodeforallpurposes,andforanallocationinthenonprofitset‐asideorsubsequenttransferoftheproperty,meetstherequirementsofTexasGovernmentCode§2306.6706,and§2306.6729,and§42(h)(5)oftheCode.

(107)QualifiedNonprofitDevelopment‐‐ADevelopmentwhichmeets therequirementsof§42(h)(5)of theCode, includes the required involvementof aQualifiedNonprofitOrganization, and is seekingCompetitiveHousingTaxCredits.

(1078) Qualified Purchaser‐‐Proposed purchaser of the Development who meets all eligibility andqualificationstandardsstated intheQualifiedAllocationPlanof theyeartheRequest isreceived, includingattending,orassigninganotherindividualtoattend,theDepartment'sPropertyComplianceTraining.

(1089) Reconstruction‐‐The demolition of one or more residential buildings in an Existing ResidentialDevelopmentandtheconstructionofanequalnumberofunitsorlessontheDevelopmentSite.AtleastoneunitmustbereconstructedinordertoqualifyasReconstruction.

(10910)Rehabilitation‐‐The improvementormodificationof anExistingResidentialDevelopment throughalteration, incidentaladditionorenhancement.ThetermincludesthedemolitionofanExistingResidentialDevelopment and the Reconstruction of a Development on the Development Site, but does not includeAdaptive Reuse. (§2306.004(26‐a)) More specifically, Rehabilitation is the repair, refurbishment and/orreplacement of existing mechanical and structural components, fixtures and finishes. Rehabilitation willcorrect deferredmaintenance, reduce functional obsolescence to the extent possible andmay include theadditionof:energyefficientcomponentsandappliances,lifeandsafetysystems;siteandresidentamenities;andotherqualityoflifeimprovementstypicalofnewresidentialDevelopments.

(11011)RelatedParty‐‐AsdefinedinTexasGovernmentCode,§2306.6702.

(1112) Relevant Supply‐‐The supply of Comparable Units in proposed and Unstabilized Developmentstargetingthesamepopulationincluding:

(A)theproposedsubjectUnits;(B)ComparableUnits inanotherproposeddevelopmentwithinthePMAwithapriorityApplicationover the subject, based on the Department's evaluation process described in §10.201(6) of thischapter(relatingtoProceduralRequirementsforApplicationSubmission)thatmaynotyethavebeenpresentedtotheBoardforconsiderationofapproval;(C)ComparableUnitsinpreviouslyapprovedbutUnstabilizedDevelopmentsinthePMA;and


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(D)ComparableUnitsinpreviouslyapprovedbutUnstabilizedDevelopmentsintheSecondaryMarketArea (SMA), in the same proportion as the proportion of Potential Demand from the SMA that isincludedinGrossDemand.

(1123)Report‐‐SeeCreditUnderwritingAnalysisReport.

(1143)Request‐‐SeeQualifiedContractRequest.

(1145)ReserveAccount‐‐Anindividualaccount:

(A)createdtofundanynecessaryrepairsforamultifamilyrentalhousingDevelopment;and

(B)maintainedbyaFirstLienLenderorBankTrustee.

(1156) Right of First Refusal (“ROFR”)‐‐An Agreement to provide a right to purchase the Property to aQualifiedNonprofitOrganizationor tenantorganizationwithpriority to that of anyotherbuyer at apricewhoseformulaisprescribedintheLURA.

(1167)RuralArea‐‐(A)APlacethatislocated:

(i)outsidetheboundariesofaprimarymetropolitanstatisticalareaorametropolitanstatisticalarea;or(ii)withintheboundariesofaprimarymetropolitanstatisticalareaorametropolitanstatisticalarea,ifthestatisticalareahasapopulationof25,000orlessanddoesnotshareaboundarywithanurbanarea

(B)ForareasnotmeetingthedefinitionofaPlace,thedesignationasaRuralAreaorUrbanAreaisassigned inaccordancewith§10.204(5)(A)of this chapter (relating toRequiredDocumentation forApplicationSubmission)orasrequestedinaccordancewith§10.204(5)(B).

(1187)SecondaryMarket(SMA)‐‐Sometimesreferredtoas"SecondaryMarketArea."TheareadefinedbytheQualifiedMarketAnalystasdescribedin§10.303ofthischapter.

(1189)SecondaryMarketArea(“SMA”)‐‐SeeSecondaryMarket.

(11920)SingleRoomOccupancy(“SRO”)‐‐AnEfficiencyUnitthatmeetsalltherequirementsofaUnitexceptthat itmay,but isnot required, tobe rentedonamonth tomonthbasis to facilitateTransitionalHousing.BuildingswithSROUnitshaveextensivelivingareasincommonandarerequiredtobeSupportiveHousingandincludetheprovisionforsubstantialsupportsfromtheDevelopmentOwneroritsagentonsite.

(1201)SiteControl‐‐Ownershiporacurrentcontractorseriesofcontracts, thatmeetstherequirementsof§10.204(10)ofthischapter,thatislegallyenforceablegivingtheApplicanttheability,notsubjecttoanylegaldefense by the owner, to develop a Property and subject it to a LURA reflecting the requirements of anyawardsofassistanceitmayreceivefromtheDepartment.

(1212) Site Work‐‐Materials and labor for the horizontal construction generally including excavation,grading,paving,undergroundutilities,andsiteamenities.

(1223)StateHousingCreditCeiling‐‐TheaggregateamountofHousingCreditAllocationsthatmaybemadeby the Department during any calendar year, as determined from time to time by the Department inaccordancewithapplicablefederal law,including§42(h)(3)(C)oftheCode,andTreasuryRegulation§1.42‐14.


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(1234) Sub‐Market‐‐An area defined by the Underwriter based on general overall market segmentationpromulgatedbymarketdatatrackingandreportingservicesfromwhichaproposedorexistingDevelopmentismostlikelytodrawthemajorityofitsprospectivetenantsorhomebuyers.

(1245) Supportive Housing‐‐Residential rental developments intended for occupancy by individuals orhouseholdsinneedofspecializedandspecificnon‐medicalservicesinordertomaintainindependentliving.Supportivehousingdevelopmentsgenerallyincludeestablishedfundingsourcesoutsideofprojectcashflowthatrequirecertainpopulationsbeservedand/orcertainservicesprovided.Thedevelopmentsareexpectedtobedebtfreeorhavenopermanentforeclosableornoncashflowdebt.ASupportiveHousingDevelopmentfinancedwith tax‐exemptbondswithaprojectbased rentalassistance contract for amajorityof theUnitsmay be treated as Supportive Housing under all subchapters of this chapter, except Subchapter D of thischapter (relating toUnderwriting andLoanPolicy) ASupportiveHousingDevelopment financedwith tax‐exemptbondswithaprojectbasedrentalassistancecontract foramajorityof theUnitsmaybetreatedasSupportiveHousingunderall subchaptersof this chapter, exceptSubchapterDof this chapter (relating toUnderwritingandLoanPolicy). If thebondsareexpected tobe redeemeduponconstructioncompletion,placement in service or stabilization and no other permanent debt will remain, the Supportive HousingDevelopmentmaybetreatedasSupportiveHousingunderSubchapterDofthischapter.Theservicesofferedgenerally include case management and address special attributes of such populations as TransitionalHousingforhomelessandatriskofhomelessness,personswhohaveexperienceddomesticviolenceorsingleparentsorguardianswithminorchildren.

(125)TDHCAOperatingDatabase‐‐Sometimes referred to as "TDHCADatabase."A consolidation of recentactual income and operating expense information collected through the Department's Annual OwnerFinancial Certification process, as required and described in Subchapter F of this chapter (relating toComplianceMonitoring),andpublishedontheDepartment'swebsite(www.tdhca.state.tx.us).

(126)TargetPopulation‐‐ThedesignationoftypesofhousingpopulationsshallincludethoseDevelopmentsthatareentirelyQualifiedElderlyDevelopments,andthosethatareentirelySupportiveHousing.Allotherswill be considered to serve general populations without regard to any subpopulations. An existingDevelopmentthathasbeendesignatedasaDevelopmentservingthegeneralpopulationmaynotchangetobecomeanElderlyDevelopmentwithoutBoardapproval.

(127) Tax‐Exempt Bond Development‐‐A Development requesting or having been awarded Housing TaxCreditsandwhichreceivesaportionofitsfinancingfromtheproceedsoftax‐exemptbondswhicharesubjecttothestatevolumecapasdescribedin§42(h)(4)oftheCode,suchthattheDevelopmentdoesnotreceiveanallocationoftaxcreditauthorityfromtheStateHousingCreditCeiling.

(128) Tax‐Exempt Bond Process Manual‐‐The manual produced and amended from time to time by theDepartment which explains the process and provides guidance for the filing of a Housing Tax CreditApplicationutilizingTax‐ExemptBonds.

(129)TDHCAOperatingDatabase‐‐Sometimes referred to as "TDHCADatabase."A consolidation of recentactual income and operating expense information collected through the Department's Annual OwnerFinancial Certification process, as required and described in Subchapter F of this chapter (relating toComplianceMonitoring),andpublishedontheDepartment'swebsite(www.tdhca.state.tx.us).

(12930)ThirdParty‐‐APersonwhoisnot:(A)anApplicant,GeneralPartner,Developer,orGeneralContractor;or(B)anAffiliatetotheApplicant,GeneralPartner,DeveloperorGeneralContractor;or(C) anyone receiving any portion of the administration, contractor or Developer fees from theDevelopment;or


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(D)anyindividualthatisanexecutiveofficerormemberofthegoverningboardorhasgreaterthan10percent ownership interest in any of the entities are identified in subparagraphs (A) ‐ (C) of thisparagraph.

(1301) Total Housing Development Cost‐‐The sum total of the acquisition cost, Hard Costs, soft costs,Developer feeandGeneralContractor fee incurredor tobe incurredthrough lease‐upbytheDevelopmentOwnerintheacquisition,construction,rehabilitation,andfinancingoftheDevelopment.

(1312)TransitionalHousing‐‐ASupportiveHousingdevelopmentthatincludeslivingUnitswithmorelimitedindividualkitchenfacilitiesandis:

(A)usedexclusivelytofacilitatethetransitionofhomelessindividualsandthoseat‐riskofbecominghomeless,toindependentlivingwithintwenty‐four(24)months;and

(B) isownedbyaDevelopmentOwnerthat includesagovernmentalentityoraqualifiednon‐profitwhichprovidestemporaryhousingandsupportiveservicestoassistsuchindividualsin,amongotherthings, locating and retaining permanent housing. The limited kitchen facilities in individual Unitsmustbeappropriatelyaugmentedbysuitable,accessiblesharedorcommonkitchenfacilities.

(132)U.S.DepartmentofAgriculture(“USDA”)‐‐TexasRuralDevelopmentOffice(“TRDO”)servingtheStateofTexas.

(133)U.S.DepartmentofHousingandUrbanDevelopment(“HUD”)‐regulatedBuilding‐‐AbuildingforwhichtherentsandutilityallowancesofthebuildingarereviewedbyHUD.

(1334)Underwriter‐‐Theauthor(s)oftheCreditUnderwritingAnalysisReport.

(134)UniformPhysicalConditionStandards(“UPCS”)‐‐AsdevelopedbytheRealEstateAssessmentCenterofHUD.

(135) Uniform Multifamily Application Templates‐‐The collection of sample resolutions and form letters,producedbytheDepartment,asmayberequiredunderthisChapter,Chapter11andChapter12ofthistitlethatmaybeused,(butarenotrequiredtobeused),tosatisfytherequirementsoftheapplicablerule.

(136)UniformPhysicalConditionStandards(“UPCS”)‐‐AsdevelopedbytheRealEstateAssessmentCenterofHUD.

(1375)Unit‐‐AnyresidentialrentalunitinaDevelopmentconsistingofanaccommodation,includingasingleroom used as an accommodation on a non‐transient basis, that contains complete physical facilities andfixturesforliving,sleeping,eating,cookingandsanitation.

(1386)UnitType‐‐Unitswill be considereddifferentUnitTypes if there is any variation in thenumber ofbedroom,bathroomsorasquare footagedifferenceequal toormorethan120square feet.Forexample:AtwoBedroom/onebathUnitisconsideredadifferentUnitTypethanatwoBedroom/twobathUnit.AthreeBedroom/twobathUnitwith1,000squarefeetisconsideredadifferentUnitTypethanathreeBedroom/twobathUnitwith1,200squarefeet.AoneBedroom/onebathUnitwith700squarefeetwillbeconsideredanequivalentUnitTypetoaoneBedroom/onebathUnitwith800squarefeet.

(1397) Unstabilized Development‐‐A development with Comparable Units that has been approved forfundingbytheDepartment'sBoardofDirectorsoriscurrentlyunderconstructionorhasnotmaintaineda90percent occupancy level for at least twelve (12) consecutivemonths following construction completion. A


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developmentmay be deemed stabilized by the Underwriter based on factors relating to a development'slease‐up velocity, Sub‐Market rents, Sub‐Market occupancy trends and other information available to theUnderwriter.TheMarketAnalystmaynotconsidersuchdevelopmentstabilizedintheMarketStudy.

(140398)UrbanArea‐‐APlacethatislocatedwithintheboundariesofaprimarymetropolitanstatisticalareaorametropolitanstatisticalareaotherthanaPlacedescribedbyparagraph(116)(A)(ii)ofthissubsection.ForareasnotmeetingthedefinitionofaPlace,thedesignationasaRuralAreaorUrbanAreaisassignedinaccordancewith§10.204(5)ofthischapter.

(139)U.S.DepartmentofAgriculture(“USDA”)‐‐TexasRuralDevelopmentOffice(TRDO)servingtheStateofTexas.

(140)U.S.DepartmentofHousingandUrbanDevelopment(HUD)‐regulatedBuilding‐‐Abuilding forwhichtherentsandutilityallowancesofthebuildingarereviewedbyHUD.

(141)UtilityAllowance‐‐Theestimateoftenant‐paidutilitiesmadeinaccordancewithTreasuryRegulation,§1.42‐10and§10.614ofthischapter(relatingtoUtilityAllowances).

(142)WorkOutDevelopment‐‐AfinanciallydistressedDevelopmentforwhichtheOwnerand/oraprimaryfinancingparticipantisseekingachangeinthetermsofDepartmentfundingorprogramrestrictions.

(b) Request for Staff Determinations. Where the definitions of Development, Development Site, NewConstruction,Rehabilitation,Reconstruction,AdaptiveReuse,andTargetPopulationfailtoaccountfullyforthe activities proposed in an Application, an Applicant may request and Department staff may provide adetermination to anApplicant explaining how staffwill review anApplication in relation to these specifictermsandtheirusagewithintheapplicablerules.SuchrequestmustbereceivedbytheDepartmentpriortosubmission of the pre‐application (if applicable to the program) or Application (if no pre‐applicationwassubmitted).Staff'sdeterminationmaytakeintoaccountthepurposeoforpoliciesaddressedbyaparticularruleorrequirement,materialityofelements,substantiveelementsofthedevelopmentplanthatrelatetotheterm or definition, the common usage of the particular term, or other issues relevant to the rule orrequirement. All such determinations will be conveyed in writing. If the determination is finalized aftersubmission of the pre‐application or Application, the Department may allow corrections to the pre‐applicationortheApplicationthataredirectlyrelatedtotheissuesinthedetermination.ItisanApplicant'ssole responsibility to request a determination and an Applicant may not rely on any determination foranotherApplicationregardlessofsimilarities inaparticular factpattern.ForanyApplicationthatdoesnotrequestandsubsequentlyreceiveadetermination,thedefinitionsandapplicableruleswillbeappliedasusedanddefinedherein.SuchadeterminationisintendedtoprovideclaritywithregardtoApplicationsproposingactivitiessuchas: scatteredsitedevelopmentorcombinationsofconstructionactivities (e.g.Rehabilitationwith some New Construction). An Applicant may appeal a determination for their Application if thedetermination provides for a treatment that relies on factors other than the explicit definition. A Boarddeterminationorastaffdeterminationnottimelyappealedcannotbefurtherappealedorchallenged.

§10.4.ProgramDates.Thissectionreflectskeydates forallmultifamilydevelopmentprogramsexcept fortheCompetitiveHousingTaxCredit Program.Aprogramcalendar for theCompetitiveHousingTaxCreditProgramisprovidedinChapter11ofthistitle(relatingtoHousingTaxCreditProgramQualifiedAllocationPlan). Applicants are strongly encouraged to submit the required items well in advance of establisheddeadlines.Non‐statutorydeadlinesspecifically listed inthissectionmaybeextendedforgoodcausebytheExecutiveDirectorforaperiodofnotmorethanfive(5)businessdaysprovided;however,thattheApplicantrequests an extension prior to the date of the original deadline and has established to the reasonablesatisfactionoftheExecutiveDirectorthatthereisgoodcausefortheextension.Exceptasprovidedforunder10 TAC §1_relating to reasonable accommodations,. Eextensions relating to Administrative DeficiencydeadlinesmayonlybeextendedifdocumentationneededtoresolvetheitemisneededfromaThirdPartyorthedocumentationinvolvessignaturesneededoncertificationformsintheApplication..


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(1) Full Application Delivery Date. The deadline by which the Application must be submitted to theDepartment.ForDirectLoanApplications,suchdeadlinewillgenerallybedefinedintheapplicableNOFAandforTax‐ExemptBondDevelopments, suchdeadlinesaremore fullyexplained in§10.201(2)of thischapter(relatingtoProceduralRequirementsforApplicationSubmission).

(2) Notice to Submit Lottery Application Delivery Date. No later than December 11, 201512, 2014,ApplicantsthatreceiveanadvancenoticeregardingaCertificateofReservationmustsubmitanoticetotheDepartment,intheformprescribedbytheDepartment.

(3) Applications Associated with Lottery Delivery Date. No later than December 18, 201519, 2014,Applicants thatparticipated in theTexasBondReviewBoardLotterymust submit the complete tax creditApplicationtotheDepartment.

(4)AdministrativeDeficiencyResponseDeadline.Suchdeadlineshallbefive(5)businessdaysafterthedateonthedeficiencynoticewithoutincurringapenaltyfeepursuantto§10.901ofthischapter(relatingtoFeeSchedule).

(5) Third Party Report Delivery Date (Environmental Site Assessment (ESA), Property ConditionAssessment(PCA),Appraisal(ifapplicable),MarketAnalysisandtheSiteDesignandDevelopmentFeasibilityReport). For Direct Loan Applications, the Third Party reportsmust be submittedwith the Application inorder for it tobeconsideredacompleteApplication.ForTax‐ExemptBondDevelopments, theThirdPartyReportsmustbesubmittednolaterthanseventy‐five(75)calendardayspriortotheBoardmeetingatwhichthe tax credits will be considered. The seventy‐five (75) calendar day deadlines are available on theDepartment'swebsite.

(6)ResolutionsDeliveryDate. Resolutions required for Tax‐Exempt BondDevelopments orDirect LoanApplicationsmustbesubmittednolaterthanfourteen(14)calendardaysbeforetheBoardmeetingatwhichconsiderationoftheawardwilloccur.

(7)Challenges toNeighborhoodOrganizationOppositionDeliveryDate. No later than forty‐five (45)calendardayspriortotheBoardmeetingatwhichconsiderationoftheawardwilloccur.

The Texas Department of Housing and Community Affairs (the “Department”) proposes new 10 TAC Chapter 10, Subchapter B §10.101, concerning Site and Development Requirements and Restrictions. The purpose of the new section is to provide guidance relating to site and development requirements and restrictions for all development sites for which applications are submitted in applying for multifamily funding through the Department. The proposed repeal of existing §10.101 is published concurrently with this rulemaking. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the new section is in effect, enforcing or administering the new section does not have any foreseeable implications related to new costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the new section is in effect, the public benefit anticipated as a result of the new section will be to provide guidance relating to site and development requirements and restrictions relating to applications applying for multifamily funding through the Department. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no new or additional economic effect on small or micro-businesses. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015 to October 15, 2015, to receive input on the new section. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764, attn: Teresa Morales. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The new section is proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the new section is proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed new section affects Chapter 2306 of the Texas Government Code, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The new section affects no other statutes, articles or codes. §10.101 Site and Development Requirements and Restrictions.

SubchapterB–SiteandDevelopmentRequirementsandRestrictions

§10.101.SiteandDevelopmentRequirementsandRestrictions.

(a)SiteRequirementsandRestrictions.ThepurposeofthissectionistoidentifyspecificrequirementsandrestrictionsrelatedtoaDevelopmentSiteseekingmultifamilyfundingorassistancefromtheDepartment.

(1)Floodplain.NewConstructionorReconstructionDevelopmentslocatedwithinaone‐hundred(100)year floodplain as identified by the Federal EmergencyManagement Agency (FEMA) Flood InsuranceRate Maps must develop the site in full compliance with the National Flood Protection Act and allapplicable federal and state statutory and regulatory requirements. The Applicant will have to usefloodplainmapsandcomplywithregulationastheyexistatthetimeofcommencementofconstruction.Even if not required by such provisions, the Sitemust be developed so that all finished ground floorelevationsareat leastonefootabovethe floodplainandparkinganddriveareasareno lowerthansixinchesbelowthefloodplain.Iftherearemorestringentlocalrequirementstheymustalsobemet.IfnoFEMA Flood Insurance Rate Maps are available for the proposed Development Site, flood zonedocumentation must be provided from the local government with jurisdiction identifying the one‐hundred (100) year floodplain. Rehabilitation (excluding Reconstruction) Developments with existingand ongoing federal funding assistance from theU.S.Department ofHousing andUrbanDevelopment(HUD) or U.S. Department of Agriculture (USDA) are exempt from this requirement. However, whereexistingandongoingfederalassistanceisnotapplicablesuchRehabilitation(excludingReconstruction)Developments will be allowed in the one‐hundred (100) year floodplain provided the state or localgovernmenthasundertakenandcansubstantiatesufficientmitigationeffortsandsuchdocumentationissubmittedintheApplicationortheexistingstructuresmeettherequirementsthatareapplicableforNewConstructionorReconstructionDevelopments,ascertifiedtobyaThirdPartyengineer.

(2)MandatoryCommunityServicesandOtherAssets.

(A)Services. Development Sitesmust be locatedwithin three (3)miles of a full service grocerystore,apharmacy,andanurgentcare facility. Thesedonotneed tobe inseparate facilities tobeconsideredeligible.Forpurposesofthisprovision,afullservicegrocerystoreisdefinedasastoreinwhichatypicalhouseholdmaybuythepreponderanceofitstypicalfoodandhouseholditemsneeds,includingavarietyofoptions forfreshmeats,produce,dairy,bakedgoods, frozenfoods,andsomehouseholdcleaningandpapergoods.Atypicalconveniencestorewouldnotqualify.Anurgentcarefacilityisdefinedasamedicalfacilitythat,atminimum,offers,duringhoursthatincludeandextendbeyondthetypicalworkdayofMonday‐Friday,8am‐6pm,treatmentofcommoninjuriesandillnessesthatdonotrequireanemergencyroomvisitbutstillrequireimmediateattention. Amapmustbeincluded identifying theDevelopmentSite and the locationof each servicebyname. Each servicemust exist or be under active construction, post pad (e.g. framing the structure) by the date theApplicationissubmitted.

(B)OtherCommunityAssets. DevelopmentSitesmustbe locatedwithinaonemileradius(two‐mile radius for Developments located in a Rural Area), unless otherwise required by the specificassetasnotedbelow,ofatleastthreesix(36)communityassetslistedinclausessubparagraphs(iA)–(xviT)ofthissubparagraph.SupportiveHousingDevelopmentslocatedinanUrbanAreamustmeettherequirement inclausesubparagraph(xviT)of thissubparagraph. Onlyonecommunityassetofeach type listed will count towards the number of assets required. These do not need to be inseparatefacilitiestobeconsideredforpoints.AmapmustbeincludedidentifyingtheDevelopmentSite and the location of each of the community assets by name. All assetsmust exist or, if underconstruction,mustbeunderactiveconstruction,postpad(e.g.framingthestructure)bythedatetheApplicationissubmitted:

(A)fullservicegrocerystore;(B)pharmacy;(iC)conveniencestore/mini‐market;

Chapter10SubchapterB 20152016

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(iiD) department or retail merchandise store (retail merchandise must be available tounaccompaniedminors)store;(iiiE)federallyinsureddepositoryinstitutionbank/creditunion;(ivF) restaurant (including fast food, but not including establishments that are primarily barsandservefoodasanincidentalitem);(vG) indoor public recreation facilities accessible to the general public, such as, communitycenters,andlibraries,fitnessclub/gym,andseniorcenters;accessibletothegeneralpublic;(viH) outdoor public recreation facilities accessible to the general public, such as parks, golfcourses,andswimmingpools;accessibletothegeneralpublic;(I) medical office of a general practitioner (physician, dentistry, optometry) or hospital(excludingthoseusedtoqualifyundersubparagraphA)/medicalclinic;(viiJ) public schools (only eligible for Developments that are not Qualified Elderly LimitationDevelopments);(K)seniorcenteraccessibletothegeneralpublic;(viii)campusofanaccreditedhighereducationinstitution;(L)religiousinstitutions;(ivM)community,civicorserviceorganizations,suchasKiwanisorRotaryClub;(xN)childcarecenter(mustbelicensed‐onlyeligibleforDevelopmentsthatarenotQualifiedElderlyLimitationDevelopments);(xiO)postoffice;(xiiP)cityhall;(xiiiQ)countycourthouse;(xivR)firestation;(xvS)policestation;(xviT) Development Site is located within ½ mile, connected by an accessible route, of adesignatedpublictransportationstopatwhichpublictransportation(notincluding“ondemand”transportation) stops on a regular, scheduled basis; a site's eligibility for on demandtransportationdoesnotmeetthisrequirement.However,accessibletransportationprovidedatnocosttothetenantwhenthePropertyManagementOfficeisopen,suchascabvouchersoraspecializedvanon‐site,toabusorotherpublictransitstop,doesqualify.

(C) Public Schools. The Development Site must be located within the attendance zones of anelementaryschool, amiddle schoolandahighschool thathasaMetStandardratingby theTexasEducation Agency. An attendance zone does not include schools with district‐wide possibility ofenrollment or no defined attendance zones, sometimes known as magnet schools. However, indistrictswithdistrict‐wideenrollmentor“choice”programs,anApplicantmayusethelowestratingof all elementary, middle, or high schools, respectively, which may possibly be attended by thetenants. The applicable school ratingwill be the2015 accountability rating assignedby theTexasEducationAgency.Schoolratingswillbedeterminedbytheschoolnumber,sothatinthecasewhereanewschoolisformedornamedorconsolidatedwithanotherschoolbutisconsideredtohavethesamenumber that ratingwillbeused.A school thathasneverbeen ratedby theTexasEducationAgencywillusethedistrictrating.IfaschoolisconfiguredtoservegradesthatdonotalignwiththeTexasEducationAgency'sconventionsfordefiningelementaryschools(typicallygradesK‐5orK‐6),middleschools(typicallygrades6‐8or7‐8)andhighschools(typicallygrades9‐12),theschoolwillbeconsideredtohavetheloweroftheratingsoftheschoolsthatwouldbecombinedtomeetthoseconventions.Indeterminingtheratingsforallthreelevelsofschools,ratingsforallgradesK‐12mustbeincluded,meaningthattwoormoreschools'ratingsmaybecombined.Forexample,inthecaseofanelementaryschoolwhichservesgradesK‐4andanintermediateschoolthatservesgrades5‐6,theelementary school ratingwillbe the lowerof those twoschools' ratings.Also, in the caseof a9thgradecenterandahighschoolthatservesgrades10‐12,thehighschoolratingwillbeconsideredthelower of those two schools' ratings. Sixth grade centers will be considered as part of themiddle


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school rating. DevelopmentSites thatdonotmeet this requirementshallbeconsidered ineligible,unlesstheApplicationproposesaDevelopmentthatissubjecttoanElderlyLimitation.

(3) Undesirable Site Features. Development Sites within the applicable distance of any of theundesirablefeaturesidentifiedinsubparagraphs(A)‐(J)ofthisparagraphwillbeconsideredineligible.Rehabilitation (excluding Reconstruction) Developments with ongoing and existing federal assistancefrom HUD, or USDA, or Veterans Affairs (“VA”) may be granted an exemption by the Board. Such anexemptionmustberequestedat the timeoforprior to the filingofanApplicationandmust includealetterstatingfromthefairhousingorcivilrightsofficeoftheexistingfederaloversightentityindicatingthattheRehabilitationoftheexistingunitsisconsistentwithachievingatleastoneormoreofthestatedgoalsasoutlined intheStateofTexasAnalysisof ImpedimentstoFairHousingChoiceor, ifwithintheboundariesofaparticipating jurisdictionorentitlementcommunity,asoutlined inthe localanalysisofimpediments to fair housing choice. the FairHousingAct. The distances are to bemeasured from thenearestboundaryoftheDevelopmentSitetotheundesirablefeature.IfDepartmentstaffidentifieswhatit believeswould constitute an undesirable site feature not listed in this paragraph or covered undersubparagraph(J)ofthisparagraph,staffmayrequestadeterminationfromtheBoardastowhethersuchfeatureisacceptableornot.IftheBoarddeterminessuchfeatureisnotacceptableandthat,accordingly,theSiteisineligible,theApplicationshallbeterminatedandsuchdeterminationofSiteineligibilityandterminationoftheApplicationcannotbeappealed.

(A) Development Sites located within 300 feet of junkyards. For purposes of this paragraph, ajunkyardshallbedefinedasstatedinTransportationCode,§396.001;(B)DevelopmentSiteslocatedwithin100feetofactiverailroadtracks,unlesstheApplicantprovidesevidencethat thecity/communityhasadoptedaRailroadQuietZoneortherailroad inquestion iscommuterorlightrail;(C) Development Sites located within 500 feet of heavy industrial or dangerous uses such asmanufacturingplants,fuelstoragefacilities(excludinggasstations),refineryblastzones,etc.;(D)DevelopmentSiteslocatedwithin2milesofpotentiallyhazardoususessuchasnuclearplantsorlarge refineries capable of refining (e.g. oil refineries producingmore than 100,000 barrels of oildaily);(E)DevelopmentSiteslocatedwithin300feetofasolidwasteorsanitarylandfills;(F)DevelopmentSitesinwhichthebuildingsarelocatedwithintheeasementofanyoverheadhighvoltage transmission line, support structures for high voltage transmission lines, radio antennae,satellite towers, or other similar structures. This doesnot apply to local service electric lines andpoles;(G)DevelopmentSitesinwhichthebuildingsarelocatedwithintheaccidentzonesorclearzonesforcommercialormilitaryairports;(H)DevelopmentSiteslocatedwithin300feetofasexually‐orientedbusiness.Forpurposesofthisparagraph, a sexually‐oriented business shall be defined as stated in Local Government Code,§243.002;(I) Development Sites that contain one ormore pipelines, situated underground or aboveground,whichcarryhighlyvolatileliquids;or(J) Any other Site deemed unacceptable, which would include, without limitation, those withexposuretoanenvironmentalfactorthatmayadverselyaffectthehealthandsafetyoftheresidentsandwhichcannotbeadequatelymitigated.

(4)UndesirableNeighborhoodCharacteristics.

(A) If the Development Site has any of the characteristics described in subparagraph (B) of thisparagraph, the Applicant must disclose the presence of such characteristics to the Department.Disclosureofundesirablecharacteristicsmustbemadeat the timetheApplication is submitted to


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the Department. Alternatively, an Applicant may choose to disclose the presence of suchcharacteristicsatthetimethepre‐application(ifapplicable)issubmittedtotheDepartmentorafterinducement (for Tax‐Exempt Bond Developments). but must be accompanied by the UndesirableNeighborhoodCharacteristicDisclosureFeepursuantto§10.901(21)ofthischapter(relatingtoFeeSchedule).ShouldstaffdeterminethattheDevelopmentSitehasanyofthecharacteristicsdescribedinsubparagraph(B)of thisparagraphandsuchcharacteristicswerenotdisclosed, theApplicationmay be subject to termination. Termination due to non‐disclosure may be appealed pursuant to§10.902ofthischapter(relatingtoAppealsProcess(§2306.0321;§2306.6715)).Thepresenceofanycharacteristics listed in subparagraph (B) of this paragraph will prompt staff to perform anassessmentoftheDevelopmentSiteandneighborhood,whichmayincludeasitevisit,andwhichwillinclude, where applicable, a review as described in subparagraph (C) of this paragraph. Theassessmentof theDevelopmentSiteandneighborhoodwillbepresented to theBoard ina report,with a recommendation with respect to the eligibility of the Development Site. Factors to beconsideredbytheBoard,despitetheexistenceoftheundesirableneighborhoodcharacteristicsareidentifiedinsubparagraph(E)ofthisparagraph.ShouldtheBoardupholdstaff'srecommendationormakeadeterminationthataDevelopmentSiteisineligiblebasedonstaff’sreport,theterminationofthe Application resulting from such Board action is not subject to appeal. In order for theDevelopment Site to be found eligible by the Board, despite the existence of undesirableneighborhood characteristics, the use of Department funds at the Development Site must beconsistentwithachievingatleastoneofthegoalsinclauses(i)–(iii)ofthissubparagraph.

(i)Preservationofexistingoccupiedaffordablehousingunitsthataresubjecttoexistingfederalrentorincomerestrictions,thatwillnotresultinafurtherconcentrationofpovertyandtheApplicationincludes a letter from the fair housing or civil rights office of the existing federal oversight entityindicatingthattheRehabilitationoftheexistingunitsisconsistentwiththeFairHousingAct;

(ii) Improvement of housing opportunities for low income households andmembers of protectedclassesinareasthatdonothavehighconcentrationsofexistingaffordablehousing;or

(iii) Provision of affordable housing in areas where there has been significant recent communityinvestmentandevidenceofnewprivatesectorinvestment;and

(iv) TheBoardmay considerwhether or not funding sources requested for theDevelopment SitewouldotherwisebeavailableforactivitiesthatwouldmorecloselyalignwiththeDepartment’sandstate’sgoals.

(B)Theexistenceofanyoneof the fourthreeundesirableneighborhoodcharacteristics inclauses (i)–(ivii)ofthissubparagraphmustbedisclosedbytheApplicantandwillpromptfurtherreviewasoutlinedinsubparagraph(C)ofthisparagraph:

(i) The Development Site is located within a census tract that has a poverty rate above 40percentforindividuals(or55percentforDevelopmentsinregions11and13)..(ii)TheDevelopmentSiteislocatedinacensustractorwithin1,000feetofanycensustractinan Urban Area and the rate of Part I violent crimes is greater than 18 per 1,000 persons(annually) as reported on neighborhoodscout.com. for the immediately surrounding area.“Immediatelysurroundingarea”forthepurposesofthisprovisionisdefinedasthecensustractwithinwhichtheDevelopmentSiteislocated,thepolicebeatwithinwhichtheDevelopmentSiteislocatedforacity’spolicedepartment,orwithinaonehalfmileradiusoftheDevelopmentSite.Thedatausedmustincludeincidentsrecordedduringtheentire2013or2014calendaryearbutmayincludeupto36consecutivemonthsofdata.Sourcessuchasthewrittenstatementfromalocal police department or data from neighborhoodscout.com may be used to documentcompliancewiththisprovision;


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(iii)TheDevelopmentSiteis locatedwithin1,000feetofmorethanonestructure,visiblefromthe street, which have fallen into such disrepair, overgrowth, and/or vandalism that it couldcommonlyberegardedasblightedorabandoned.(ivii) The Environmental Site Assessment for the Development Site indicates any facilitieslistingswithintheASTM‐requiredsearchdistancesfromtheapproximatesiteboundariesonanyoneofthefollowingdatabases:

(I)U.S.EnvironmentalProtectionAgency(“USEPA”)NationalPriorityList(“NPL”);Comprehensive EnvironmentalResponse, Compensation, andLiability Information System(“CERCLIS”);(II)FederalEngineeringand/orInstitutionalControlsRegistries(“EC”);Resource Conservation and Recovery Act (“RCRA”) facilities associated with treatment,storage,anddisposalofhazardousmaterials thatareundergoingcorrectiveaction(“RCRACORRACTS”);(III)RCRAGenerators/Handlersofhazardouswaste;or(IV)Statevoluntarycleanupprogram.

(C)Shouldanyoneoftheundesirableneighborhoodcharacteristicsdescribedinsubparagraph(B)ofthisparagraphexist,staffwillconductafurtherDevelopmentSiteandneighborhoodreviewwhichwillincludeassessmentsofthoseitemsidentifiedinclauses(i)–(viii)ofthisparagraph.

(i)Adeterminationregardingneighborhoodboundaries,whichwillbebasedonthereviewofacombinationofnaturalandmanmadephysicalfeatures(rivers,highways,etc.),apparentchangesinlanduse,thePrimaryMarketAreaasdefinedintheMarketAnalysis,censustractormunicipalboundaries,andinformationobtainedfromanySitevisits;(ii) An assessment of blight in the neighborhood, evidenced by boarded up or abandonedresidential and/or commercial businesses and/or the visible physical decline of property orproperties;(iii) An assessment of general land use in the neighborhood, including comment on theprevalenceofresidentialuses;(iiiv)Anassessmentconcerninganyofthefeaturesreflectedinparagraph(3)ofthissubsectionif they are present in the neighborhood, regardless of whether they are within the specifieddistancesreferencedinparagraph(3);.(iv)Anassessmentof thenumberofexistingaffordable rentalunits (generally includes rentalproperties subject to TDHCA, HUD, or USDA restrictions) in the neighborhood, includingcommentonconcentrationbasedonneighborhoodsize;(vi) An assessment of the percentage of households residing in the census tract that havehouseholdincomesequaltoorgreaterthanthemedianhouseholdincomefortheMSAorcountywheretheDevelopmentSiteislocated;and(vii) An assessment of the number ofmarket ratemultifamily units in the neighborhood andtheircurrentrentsandlevelsofoccupancy.;and(viii) An assessment of the number and/or strength of mitigating factors for otherwiseundesirableneighborhoodcharacteristics,includingbutnotlimitedtocommunityrevitalizationplans, demographic data that suggests increasing socio‐economic diversity, crime statisticsevidencingtrendsthatcrimeratesaredecreasing,newconstruction inthearea,andanyotherevidenceofpublicand/orprivateinvestmentintheneighborhood.

(D)Duringorafter staff’s reviewof theDevelopmentSite, theDepartmentmayrequestadditionalinformation from the Applicant. This information is not required to be submittedwith the initialdisclosurebutmustbemadeavailableattheDepartment’srequest.Informationregardingmitigation


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of undesirable neighborhood characteristics should be relevant to the undesirable characteristicsthatarepresentintheneighborhood.Forexample,aplantocleanupanenvironmentalhazardisanappropriate response todisclosureofa facility listed in theEnvironmental SiteAssessment. Withrespect to crime, such information may include, but is not limited to, crime statistics evidencingtrendsthatcrimeratesaremateriallyandconsistentlydecreasing,violentcrimedatabasedonthepolicebeatwithinwhichtheDevelopmentSiteislocatedforthecity’spolicedepartment,orviolentcrimeswithinaonehalfmileradiusoftheDevelopmentSite.Thedatausedmustincludeincidentsrecordedduringtheentire2014and2015calendaryear.Awrittenstatementfromthelocalpolicedepartment, information identifying efforts by the local police department addressing issues ofcrime, or documentation indicating that the high level of criminal activity is concentrated at theDevelopmentSite,whichpresumablywouldberemediatedbytheplannedDevelopment,mayalsobeused todocumentcompliancewith thisprovision. Othermitigationefforts toaddressundesirablecharacteristicsmay include new construction in the area already underway that evidences publicand/orprivateinvestment,andtotheextentblightorabandonmentispresent,acceptablemitigationwouldgobeyondthesecurementorrazingandrequirethecompletionofadesirablepermanentuseofthesite(s)onwhichtheblightorabandonment ispresentsuchasneworrehabilitatedhousing,newbusiness,developmentandcompletionofdedicatedmunicipalorcounty‐ownedparkspace.Forinstance,aplantocleanupanenvironmentalhazard isanappropriate responsetodisclosureofafacility listedintheenvironmentalsiteassessment,whileamanagementplanand/oreffortsofthelocal police department are appropriate to address issues of crime. Mitigation of undesirablecharacteristicsmustshould also include timelines that evidence that efforts are already underwayand a reasonable expectation that the issue(s) being addressed will be resolved or at leastsignificantlyimprovedbythetimetheproposedDevelopmentisplacedinservice.Informationlikelytoberequestedmayincludebutisnotlimitedtothoseitemsinclauses(i)–(iv)ofthissubparagraph.

(i) Community revitalization plans (whether or not submitted for points under §11.9(d)(7) ofthistitle);(ii) Evidence of public and/or private plans to develop or redevelop in the neighborhood,whetherresidentialorcommercial;(iii)Mitigationplansforanyadverseenvironmentalfeatures;and/or(iv) Statements from appropriate local elected officials regarding how the development willaccomplish objectives in meeting obligations to affirmatively further fair housing and willaddressthegoalssetforthintheAnalysisofImpedimentsandConsolidatedPlan(s)ofthelocalgovernmentand/orthestate.

(E) In order for the Development Site to be found eligible by the Board, despite the existence ofundesirableneighborhoodcharacteristics,theuseofDepartmentfundsattheDevelopmentSitemustbeconsistentwithachievingatleastoneofthegoalsinclauses(i)–(iii)ofthissubparagraph.

(i)Preservationofexistingoccupiedaffordablehousingunitsthataresubjecttoexistingfederalrentorincomerestrictions;

(ii)Factualdeterminationthattheundesirablecharacteristicthathasbeendisclosedarenotofsuch a nature or severity that they should render the Development Site ineligible based onmitigationeffortsasestablishedundersubparagraph(D)ofthisparagraph;or

(iii) The Development is necessary to enable the state, a participating jurisdiction, or anentitlementcommunitytocomplywithitsobligationtoaffirmativelyfurtherfairhousing,aHUDapprovedConciliationAgreement,orafinalandnon‐appealablecourtorder.


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(b) Development Requirements and Restrictions. The purpose of this section is to identify specificrestrictionsonaproposedDevelopmentsubmittedformultifamilyfundingbytheDepartment.

(1)IneligibleDevelopments.ADevelopmentshallbeineligibleifanyofthecriteriainsubparagraphs(A)and(B)ofthisparagrapharedeemedtoapply.

(A)GeneralIneligibilityCriteria.(i) Developments comprised of hospitals, nursing homes, trailer parks, dormitories (or otherbuildingsthatwillbepredominantlyoccupiedbystudents)orotherfacilitieswhichareusuallyclassifiedastransienthousing(asprovidedinthe§42(i)(3)(B)(iii)and(iv)oftheCode);(ii)AnyDevelopmentwith anybuilding(s)with four ormore stories thatdoesnot include anelevator;(iii) A Housing Tax Credit Development that provides on‐site continual or frequent nursing,medical,orpsychiatricservices.Refer toIRSRevenueRuling98‐47 forclarificationofassistedliving;(iv)ADevelopmentthatviolates§1.15ofthistitle(relatingtoIntegratedHousingRule);(v) A Development seeking Housing Tax Credits that will not meet the general public userequirementunderTreasuryRegulation,§1.42‐9oradocumentedexceptionthereto;or(vi) A Development utilizing a Direct Loan that is subject to the Housing and CommunityDevelopmentAct,§104(d)requirementsandproposingRehabilitationorReconstruction, if theApplicant is not proposing the one‐for‐one replacement of the existing unit mix. Addingadditionalunitswouldnotviolatethisprovision.

(B)IneligibilityofQualifiedElderlyDevelopments.

(i) Any Qualified Elderly Development of two stories or more that does not include elevatorserviceforanyUnitsorlivingspaceabovethefirstfloor;(ii)AnyQualifiedElderlyDevelopmentwithanyUnitshavingmorethantwobedroomswiththeexception of up to three employee Units reserved for the use of the manager, maintenance,and/orsecurityofficer.TheseemployeeUnitsmustbespecificallydesignatedassuch;or(iii)AnyQualifiedElderlyDevelopment(includingQualifiedElderly inaRuralArea)proposingmorethan70percenttwo‐bedroomUnits.

(2)DevelopmentSizeLimitations.TheminimumDevelopmentsizeis16Units.NewConstructionorAdaptive Reuse Developments in Rural Areas are limited to a maximum of 80 Units. OtherDevelopmentsdonothavealimitationastothemaximumnumberofUnits.(3)RehabilitationCosts.Developments involvingRehabilitationmustestablisha scopeofwork thatwill substantially improve the interiors of all units and exterior deferredmaintenance. The followingminimumRehabilitationamountsmustbemaintainedthroughtheissuanceofIRSForms8609oratthetimeoftheclose‐outdocumentation,asapplicable:

(A)ForHousingTaxCreditDevelopmentsunder theUSDASet‐Aside theminimumRehabilitationwillinvolveatleast$19,000perUnitinBuildingCostsandSiteWork;(B)ForTax‐ExemptBondDevelopments, less than twenty (20) yearsold, basedon theplaced inservicedate,theminimumRehabilitationwillinvolveatleast$15,000perUnitinBuildingCostsand


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SiteWork. If suchDevelopments are greater than twenty (20) years old, based on the placed inservicedate,theminimumRehabilitationwillinvolveatleast$25,000perUnitinBuildingCostsandSiteWork;(C)ForallotherDevelopments,theminimumRehabilitationwillinvolveatleast$25,000perUnitinBuildingCostsandSiteWork;or(D)RehabilitationDevelopmentsfinancedwithDirectLoansprovidedthroughtheHOMEprogram(oranyotherprogramsubjectto24CFR92)thattriggerstherehabilitationrequirementsof24CFR92willberequiredtomeetallapplicablestateandlocalcodes,ordinances,andstandards;the2012International Existing Building Code (“IEBC”); and the requirements in clauses (i) – (iv) of thissubparagraph.

(i) recommendations made in the Environmental Assessment and Physical ConditionsAssessment with respect to health and safety issues, major systems (structural support;roofing;claddingandweatherproofing;plumbing;electrical;andheating,ventilation,andairconditioning),andleadbasedpaintmustbeimplemented;(ii) allaccessibilityrequirementspursuantto10TAC§1.206(relatingtoApplicabilityoftheConstruction Standards for Compliance with §504 of the Rehabilitation Act of 1973) and§1.209(relatingtoSubstantialAlterationofMultifamilyDevelopments)mustbemet;(iii)propertieslocatedinthedesignatedcatastropheareasspecifiedin28TAC§5.4008mustcomplywith28TAC§5.4011 (relating toApplicableBuildingCodeStandards inDesignatedCatastropheAreas forStructuresConstructed,Repairedor toWhichAdditionsAreMadeOnandAfterJanuary1,2008);and(iv)shouldIEBCbemorerestrictivethanlocalcodes,orshouldlocalcodesnotexist,thentheDevelopmentmustmeettherequirementsimposedbyIEBC.

(4)MandatoryDevelopmentAmenities.(§2306.187)NewConstruction,ReconstructionorAdaptiveReuse Units must include all of the amenities in subparagraphs (A) ‐ (M) of this paragraph.Rehabilitation(excludingReconstruction)Developmentsmustprovidetheamenitiesinsubparagraphs(D)‐(M)ofthisparagraphunlessstatedotherwise.SupportiveHousingDevelopmentsarenotrequiredtoprovidetheamenitiesinsubparagraph(B),(E),(F),(G),(I),or(M)ofthisparagraph;however,accessmustbeprovidedtoacomparableamenityinacommonarea.TheseAllamenitieslistedbelowmustbeat no charge to the tenants. Tenants must be provided written notice of the applicable requiredamenitiesfortheDevelopment.electionsmadebytheDevelopmentOwner.

(A)AllUnitsmustbewiredwithRG‐6/UCOAXorbetterandCAT3phonecableorbetter,wiredtoeachbedroom,diningroomandlivingroom;(B)LaundryConnections;(C)Exhaust/ventfans(ventedtotheoutside)inthebathrooms;(D)Screensonalloperablewindows;(E) Disposal and Energy‐Star rated dishwasher (not required for USDA; RehabilitationDevelopmentsexemptfromdishwasherifonewasnotoriginallyintheUnit);(F)Energy‐Starratedrefrigerator;(G)Oven/Range;


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(H)Blindsorwindowcoveringsforallwindows;(I)AtleastoneEnergy‐StarratedceilingfanperUnit;(J)Energy‐StarratedlightinginallUnitswhichmayincludecompactfluorescentorLEDlightbulbs;(K) Plumbing fixtures (toilets and faucets) must meet design performance standards at 30 TAC§290.252(relatingtoDesignStandards)ofTexasHealthandSafetyCode,Chapter372;(L)AllUnitsmusthavecentralheatingandair‐conditioning(PackagedTerminalAirConditionersmeetthisrequirementforSROorEfficiencyUnitsonly);and(M)Adequateparkingspacesconsistentwithlocalcode,unlessthereisnolocalcode,inwhichcasethe requirement would be one and a half (1.5) spaces per Unit for non‐Qualified ElderlyDevelopments and one (1) space per Unit for Qualified Elderly Developments. The minimumnumberofrequiredspacesmustbeavailabletothetenantsatnocost.

(5)CommonAmenities.

(A)AllDevelopmentsmustincludesufficientcommonamenitiesasdescribedinsubparagraph(C)ofthisparagraphtoqualifyforatleasttheminimumnumberofpointsrequiredinaccordancewithclauses(i)‐(vi)ofthissubparagraph.ForDevelopmentswith41Unitsormore,atleasttwo(2)oftherequiredthresholdpointsmustcomefromsubparagraph(C)(xxxi)ofthisparagraph.

(i)Developmentswith16to40Unitsmustqualifyforfour(4)points;(ii)Developmentswith41to76Unitsmustqualifyforseven(7)points;(iii)Developmentswith77to99Unitsmustqualifyforten(10)points;(iv)Developmentswith100to149Unitsmustqualifyforfourteen(14)points;(v)Developmentswith150to199Unitsmustqualifyforeighteen(18)points;or(vi)Developmentswith200ormoreUnitsmustqualifyfortwenty‐two(22)points.

(B)Thesepointsarenotassociatedwithanyselectioncriteriapoints.Theamenitiesmustbeforthebenefit of all tenants and made available throughout normal business hours and maintainedthroughouttheCompliancePeriodExtendedUsePeriod.TenantsmustbeprovidedwrittennoticeoftheelectionsmadebytheDevelopmentOwner.Iffeesinadditiontorentarechargedforamenities,then the amenity may not be included among those provided to satisfy the requirement. Allamenitiesmustmeetaccessibilitystandardsandspacesforactivitiesmustbesizedappropriatelytoserve the proposed Target Population. Applications for non‐contiguous scattered site housing,excludingnon‐contiguoussinglefamilysites,willhavethetestappliedbasedonthenumberofUnitsper individual site,which includes thoseamenities requiredundersubparagraph (C)(xxxi)of thisparagraph. If scatteredsitewith fewer than41Unitspersite,ataminimumat leastsomeof theamenities required under subparagraph (C)(xxxi) of this paragraph must be distributedproportionatelyacrossall sites. In thecaseofadditionalphasesofaDevelopmentanyamenitiesthatareanticipatedtobesharedwiththefirstphasedevelopmentcannotbeclaimedforpurposesofmeetingthisrequirementforthesecondphase.ThesecondphasemustincludeenoughpointstomeetthisrequirementthatareprovidedontheDevelopmentSite.Forexample,ifaswimmingpoolexistsonthephaseonepropertyanditisanticipatedthatthesecondphasetenantswillbeallowedituseit,theswimmingpoolcannotbeclaimedforpointsforpurposesofthisrequirementforthesecondphaseDevelopment.Allamenitiesmustbeaccessibleandmustbeavailabletoallunitsviaanaccessibleroute.

(C) The common amenities and respective point values are set out in clauses (i) ‐ (xxxi) of thissubparagraph. Some amenities may be restricted for Applicants proposing a specific TargetPopulation.AnApplicantcanonlycountanamenityonce;thereforecombinedfunctions(alibrarywhichispartofacommunityroom)willonlyqualifyforpointsunderonecategory:


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(i)Fullperimeterfencing(2points);(ii)Controlledgateaccess(2points);(iii)Gazebow/sittingarea(1point);(iv) Accessible walking/jogging path separate from a sidewalk and in addition to requiredaccessibleroutestoUnitsorotheramenities(1point);(v)Communitylaundryroomwithatleastonewasheranddryerforevery40Units(3points);(vi)Barbecuegrillandpicnictablewithatleastoneofeachforevery50Units(1point);(vii)Coveredpavilionthatincludesbarbecuegrillsandtableswithatleastonegrillandtableforevery50Units(2points);(viii)Swimmingpool(3points);(ix)Splashpad/waterfeatureplayarea(1point);(x)Furnishedfitnesscenter.Equippedwith fitnessequipmentoptionswithat leastoneoptionper every 40 Units or partial increment of 40 Units: stationary bicycle, elliptical trainer,treadmill,rowingmachine,universalgym,multi‐functionalweightbench,sauna,stair‐climber,orothersimilarequipment.Equipmentshallbecommercialusegradeorquality.AllDevelopmentsmusthaveatleasttwoequipmentoptionsbutarenotrequiredtohavemorethanfiveequipmentoptionsregardlessofnumberofUnits(2points);(xi)Equippedand functioningbusiness centerorequippedcomputer learningcenter.Mustbeequippedwith 1 computer for every 4030 Units loadedwith basic programs (maximum of 5computersneeded),1laserprinterforevery3computers(minimumofoneprinter)andatleastonescannerwhichmaybeintegratedwithprinter(2points);(xii)FurnishedCommunityroom(2points);(xiii)Librarywithanaccessiblesittingarea(separatefromthecommunityroom)(1point);(xiv)Enclosedcommunitysunporchorcoveredcommunityporch/patio(1point);(xv)Servicecoordinatorofficeinadditiontoleasingoffices(1point);(xvi)SeniorActivityRoomstockedwithsupplies(ArtsandCrafts,etc.)(2points);(xvii)HealthScreeningRoom(1point);(xviii) Secured Entry (applicable only if all Unit entries are within the building's interior) (1point);(xix)Horseshoepit;puttinggreen;shuffleboardcourt;orvideogameconsole(s)withavarietyofgamesandadedicatedlocationaccessibletoalltenantstoplaysuchgames(1point);(xx)CommunityDiningRoomwithfullorwarmingkitchenfurnishedwithadequatetablesandseating(3points);(xxi)OneChildren'sPlayscapeEquippedfor5to12yearolds,oroneTotLot(1point).Canonlyselectthisitemifclause(xxii)ofthissubparagraphisnotselected;or(xxii)TwoChildren'sPlayscapesEquippedfor5to12yearolds,twoTotLots,oroneofeach(2points).Canonlyselectthisitemifclause(xxi)ofthissubparagraphisnotselected;(xxiii)SportCourt(Tennis,BasketballorVolleyball)(2points);(xxiv) Furnished and staffed Children's Activity Center that must have age appropriatefurnishingsandequipment.Appropriatelevelsofstaffingmustbeprovidedduringafter‐schoolhoursandduringschoolvacations(3points);(xxv)CommunityTheaterRoomequippedwitha52inchorlargerscreenwithsurroundsoundequipment;DVDplayer;andtheaterseating(3points);(xxvi)DogParkareathatisfullyenclosedandintendedfortenantowneddogstorunoffleashoradogwashstationwithplumbingforhotandcoldwaterconnectionsandtubdrainage(requiresthattheDevelopmentallowdogs)(1point);(xxvii)CommonareaWi‐Fi(1point);


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(xxviii) Twenty‐four hour, live seven days aweekmonitored camera/security system in eachbuilding(3points);(xxix) Secured bBicycle parkingwithin reasonable proximity to each residential building thatallowsforbicyclestobesecuredwithlock(locknotrequiredtobeprovidedtotenant)(1point);(xxx)Rooftopviewingdeck(2points);or(xxxi)GreenBuildingFeatures. Points under this item are intended topromote energy andwater conservation, operational savings and sustainable building practices. Points may beselected from only one of four categories: Limited Green Amenities, Enterprise GreenCommunities, Leadership in Energy and Environmental Design (LEED), and ICC 700 NationalGreen Building Standard. A Development may qualify for no more than four (4) points totalunderthisclause.

(I)LimitedGreenAmenities(2points).Theitemslistedinsubclauses(I)‐(IV)ofthisclause constitute the minimum requirements for demonstrating green building ofmultifamilyDevelopments.Six(6)ofthetwenty‐two(22)itemslistedunderitems(‐a‐)‐(‐v‐)ofthissubclausemustbemetinordertoqualifyforthemaximumnumberoftwo(2)pointsunderthissubclause;

(‐a‐) a rain water harvesting/collection system and/or locally approved greywatercollectionsystem;(‐b‐) native trees and plants installed that reduce irrigation requirements and areappropriate to theDevelopment Site's soil andmicroclimate to allow for shading inthesummerandheatgaininthewinter.ForRehabilitationDevelopmentsthiswouldbeapplicabletonewlandscapingplannedaspartofthescopeofwork;(‐c‐)water‐conserving fixtures thatmeet the EPA'sWaterSense Label. Such fixturesmust include low‐flow or high efficiency toilets, bathroom lavatory faucets,showerheads,andkitchenfaucets.RehabilitationDevelopmentsmayinstallcompliantfaucetaeratorsinsteadofreplacingtheentirefaucets;(‐d‐)alloftheHVACcondenserunitslocatedsotheyarefullyshaded75percentofthetimeduringsummermonths(i.e.MaythroughAugust)ascertifiedbythedesignteamatcostcertification;(‐e‐)Energy‐StarqualifiedhotwaterheatersorinstallthosethatarepartofanoverallEnergy‐Starefficientsystem;(‐f‐) install individual or sub‐metered utility meters for electric and water.RehabilitationDevelopmentsmayclaimsub‐meteronlyifnotalreadysub‐meteredatthetimeofApplication;(‐g‐) healthy finish materials including the use of paints, stains, adhesives, andsealants consistentwith the Green Seal 11 standard or other applicable Green Sealstandard;(‐h‐) install daylight sensor, motion sensors or timers on all exterior lighting andinstallfixturesthatincludeautomaticswitchingontimersorphotocellcontrolsforalllightingnotintendedfor24‐houroperationorrequiredforsecurity;(‐i‐)recyclingserviceprovidedthroughouttheCompliancePeriod;(‐j‐) for Rehabilitation Developments or Developments with 41 units or less,construction waste management system provided by contractor that meets LEEDsminimumstandards;(‐k‐)forRehabilitationDevelopmentsorDevelopmentswith41unitsorless,clothesdryersventedtotheoutside;(‐l‐)forDevelopmentswith41unitsorless,atleast25%bycostFSCcertifiedsalvagedwoodproducts;


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(‐m‐)locatewaterfixtureswithin20feetofhotwaterheater;(‐n‐)dripdropirrigateatnon‐turfareas;(‐o‐) radiant barrier decking for New Construction Developments or “cool” roofingmaterials;(‐p‐)permanentshadingdevicesforwindowswithsolarorientation;(‐q‐)Energy‐Starcertifiedinsulationproducts;(‐r‐)fullcavitysprayfoaminsulationinwalls;(‐s‐)Energy‐Starratedwindows;(‐t‐)FloorScorefloorscorecertifiedflooring;(‐u‐)sprinklersystemwithrainsensors;(‐v‐)NAUF(NoAddedUreaFormaldehyde)cabinets.

(II)EnterpriseGreenCommunities (4 points). TheDevelopmentmust incorporate allmandatoryandoptionalitemsapplicabletotheconstructiontype(i.e.NewConstruction,Rehabilitation, etc.) as provided in the most recent version of the Enterprise GreenCommunitiesCriteriafoundathttp://www.greencommunitiesonline.org.(III) LEED (4 points). The Development must incorporate, at a minimum, all of theapplicablecriterianecessarytoobtainaLEEDCertification,regardlessoftheratinglevelachieved(i.e.,Certified,Silver,GoldorPlatinum).(IV) ICC 700 National Green Building Standard (4 points). The Development mustincorporate,ataminimum,alloftheapplicablecriterianecessarytoobtainaNAHBGreenCertification,regardlessoftheratinglevelachieved(i.e.Bronze,Silver,Gold,orEmerald).

(6)UnitRequirements.

(A)UnitSizes.DevelopmentsproposingNewConstructionorReconstructionwillberequired tomeetthe minimum sizes of Units as provided in clauses (i) ‐ (v) of this subparagraph. These minimumrequirements are not associated with any selection criteria. Developments proposing Rehabilitation(excludingReconstruction)orSupportiveHousingDevelopmentswillnotbesubjecttotherequirementsofthissubparagraph.

(i)fivehundred(500)squarefeetforanEfficiencyUnit;(ii)sixhundred(600)squarefeetforaoneBedroomUnit;(iii)eighthundred(800)squarefeetforatwoBedroomUnit;(iv)onethousand(1,000)squarefeetforathreeBedroomUnit;and(v)onethousand,two‐hundred(1,200)squarefeetforafourBedroomUnit.

(B)UnitandDevelopmentFeatures.HousingTaxCreditApplicantsmayselectamenitiesforthescoreof anApplicationunder this section, butmustmaintain thepoints associatedwith those amenities bymaintaining the amenity selected or providing substitute amenitieswith equal or higher point values.Tax‐ExemptBondDevelopmentsmustincludeenoughamenitiestomeetaminimumofseven(7)points.Applicationsnot fundedwithHousingTaxCredits (e.g.DirectLoanApplications)must includeenoughamenitiestomeetaminimumoffour(4)points.TheamenityshallbeforeveryUnitatnoextrachargetothetenant.ThepointsselectedatApplicationandcorrespondinglistofamenitieswillberequiredtobeidentified in the LURA, and the points selected at Application must be maintained throughout theCompliancePeriodExtendedUsePeriod.ApplicationsinvolvingscatteredsiteDevelopmentsmusthaveaspecificamenitylocatedwithineachUnittocountforpoints.RehabilitationDevelopmentswillstartwithabasescoreofthree(3)pointsandSupportiveHousingDevelopmentswillstartwithabasescoreoffive(5)points.


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(i)Coveredentries(0.5point);(ii)Ninefootceilingsinlivingroomandallbedrooms(atminimum)(0.5point);(iii)Microwaveovens(0.5point);(iv)Self‐cleaningorcontinuouscleaningovens(0.5point);(v)Refrigeratorwithicemaker(0.5point);(vi)Storageroomorcloset,ofapproximately9squarefeetorgreater,separatefromandinadditiontobedroom,entrywayorlinenclosetsandwhichdoesnotneedtobeintheUnitbutmustbeonthepropertysite(0.5point);(vii)Energy‐Starqualifiedlaundryequipment(washersanddryers)foreachindividualUnit;mustbefrontloadingwasheranddryerinrequiredaccessibleUnits(1.5points);(viii)Coveredpatiosorcoveredbalconies(0.5point);(ix)Coveredparking(includinggarages)ofatleastonecoveredspaceperUnit(1.5points);((x)R‐15Walls/R‐30Ceilings(ratingofwall/ceilingsystem)(1.5points);(xi)14SEERHVAC(orgreater)forNewConstruction,AdaptiveReuse,andReconstructionorradiantbarrierintheatticforRehabilitation(excludingReconstruction)(1.5points);(xii)HighSpeedInternetservicetoallUnits(canbewiredorwireless;requiredequipmentforeithermustbeprovided)(1point);(xiii)Deskorcomputernook(0.5point);(xiv)Thirty(30)yearshingleormetalroofing(0.5point);and(xv) Greater than 30 percent stucco or masonry (includes stone, cultured stone, and brick butexcludes cementitious siding) on all building exteriors; the percentage calculation may excludeexteriorglassentirely(2points).

(7)TenantSupportiveServices.Thesupportiveservicesincludethoselistedinsubparagraphs(A)‐(ZT)ofthisparagraph.TaxExemptBondDevelopmentsmustselectaminimumofeight(8)points;ApplicationsnotfundedwithHousingTaxCredits(e.g.HOMEProgramorotherDirectLoans)mustincludeenoughservicestomeet a minimum of four (4) points. The points selected and complete list of supportive services will beincludedintheLURAandthetimeframebywhichservicesareofferedmustbeinaccordancewith§10.619ofthis chapter (relating to Monitoring for Social Services) and maintained throughout the CompliancePeriodExtendedUsePeriod.TheOwnermaychange, from time to time, the servicesoffered;however, theoverallpointsasselectedatApplicationmustremainthesame.TheservicesprovidedshouldbethosethatwilldirectlybenefittheTargetPopulationoftheDevelopment.TenantsmustbeprovidedwrittennoticeoftheelectionsmadebytheDevelopmentOwner.Nofeesmaybechargedtothetenantsforanyoftheservices,andtheremustbeadequatespacefortheintendedservicesandservicesofferedshouldbeaccessibletoall(e.g. exercises classes must be offered in a manner that would enable a person with a disability toparticipate.).Servicesmustbeprovidedon‐siteortransportationtothoseoff‐siteservicesidentifiedonthelistmustbeprovided.Thesameservicemaynotbeusedformorethanonescoringitem.Alloftheseservicesmustbeprovidedbyapersononthepremises

(A)jointuselibrarycenter,asevidencedbyawrittenagreementwiththelocalschooldistrict(2points);(B)weekdaycharacterbuildingprogram(shall includeat leastonamonthlybasisa curriculumbasedcharacter building presentation on relevant topics, for example teen dating violence, drug prevention,bullying,teambuilding,internetdangers,strangerdanger,etc.)(2points);(C)dailytransportationsuchasbuspasses,cabvouchers,specializedvanon‐site(4points);(D)Foodpantry/commonhouseholditemsaccessibletoresidentsatleastonamonthlybasis(1point);(E) GED preparation classes (shall include an instructor providing on‐site coursework and exam)(21points);


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(F)Englishasasecond languageclasses (shall includean instructorprovidingon‐sitecourseworkandexam)(1point);(G)quarterly financial planning courses (i.e. homebuyer education, credit counseling, investing advice,retirementplans,etc.).Coursesmustbeofferedthroughanon‐siteinstructor;aCD‐ROMoronlinecourseisnotacceptable(1point);(H)annualhealthfairprovidedbyahealthcareprofessional(1point);(I)quarterlyhealthandnutritionalcourses(1point);(J)organizedyouthprogramsorotherrecreationalactivitiessuchasgames,moviesorcraftsofferedbytheDevelopment(1point);(K)scholastictutoring(shallincludeweekdayhomeworkhelporotherfocusonacademics)(3points);(L)NotaryServicesduringregularbusinesshours(§2306.6710(b)(3))(1point);(M)weeklyexerciseclasses(offeredattimeswhenmostresidentswouldbelikelytoattend)(2points);(N) twicemonthly arts, crafts, and other recreational activities (e.g. such as Book Clubs and creativewritingclasses)(2points);(O)annualincometaxpreparation(offeredbyanincometaxprepservice)(1point);(P)monthlytransportationtocommunity/socialeventssuchasmalltrips,communitytheatre,bowling,organizedtours,etc.(1point);(Q) twice monthly on‐site social events (i.e. potluck dinners, game night, sing‐a‐longs, movie nights,birthdayparties,etc.)(1point);(R)specificcasemanagement servicesofferedbyaqualifiedOwnerorDeveloperorthroughexternal,contractedpartiesforseniors,PersonswithDisabilitiesorSupportiveHousing(1point);(S) weekly home chore services (such as valet trash removal, assistance with recycling, furnituremovement, etc., and quarterly preventativemaintenance including light bulb replacement) for ElderlyDevelopmentsorDevelopmentswhereseniorsandtheserviceisprovidedforPersonswithDisabilitiesanddocumentationtothateffectcanbeprovidedformonitoringpurposes(2points);(T)anyof theprogramsdescribedunderTitle IV‐Aof theSocialSecurityAct (42U.S.C.§§601,et seq.)whichenableschildrentobecaredforintheirhomesorthehomesofrelatives;endsthedependenceofneedyfamiliesongovernmentbenefitsbypromotingjobpreparation,workandmarriage;preventsandreducestheincidenceofunplannedpregnancies;andencouragestheformationandmaintenanceoftwo‐parentfamilies(1point);(U) contracted career training and placement partnerships with local worksource offices, culinaryprograms,orvocationalcounselingservices;alsoresidenttrainingprogramsthattrainandhireresidentsfor job opportunities inside the development in areas like leasing, tenant services, maintenance,landscaping,orfoodandbeverageoperation(2points);(V)externalpartnershipsforprovisionofweeklyAAorNasubstanceabusemeetingsattheDevelopmentSite(2points);(W) contracted onsite occupational or physical therapy services for Elderly Developments seniors orDevelopmentswheretheserviceisprovidedforandPersonswithDisabilitiesanddocumentationtothateffectcanbeprovidedformonitoringpurposes(2points);(X)afull‐timeresidentservicescoordinatorwithadedicatedofficespaceattheDevelopment(2points);(Y)aresident‐runpeapatchorcommunitygardenwithannualsoilpreparationandmulchprovidedbytheOwnerandaccesstowater(1point);and(Z)DevelopmentSiteslocatedwithinaonemileradiusofoneofthefollowingcanalsoqualifyforone(1)point:

(i)Facilityfortreatmentofalcoholand/ordrugdependency;(ii)FacilityfortreatmentofPTSDandothersignificantpsychiatricorpsychologicalconditions;


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(iii)Facilityproviding therapeuticand/or rehabilitative services relating tomobility, sight, speech,cognitive,orhearingimpairments;or(iv) Facility providing medical and/or psychological and/or psychiatric assistance for persons oflimitedfinancialmeans.

(8) Development Accessibility Requirements. All Developments must meet all specifications andaccessibilityrequirementsasidentifiedinsubparagraphs(A)‐(C)ofthisparagraphandanyotherapplicablestate or federal rules and requirements. The accessibility requirements are further identified in theCertificationofDevelopmentOwnerasprovidedintheApplication.

(A)TheDevelopmentshallcomplywiththeaccessibilityrequirementsunder§504,RehabilitationActof1973(29U.S.C.§794),asspecifiedunder24C.F.R.Part8,SubpartC,andasfurtherdefinedinChapter1,SubchapterBofthistitle(relatingtoAccessibilityRequirements).(§§2306.6722;2306.6730)(B)NewConstruction (excludingNewConstructionof non‐residential buildings)DevelopmentswheresomeUnits are normally exempt fromFairHousing accessibility requirements, aminimumof 20%ofeach unit type of otherwise exempt units (i.e., one bedroom one bath, two bedroom one bath, twobedroomtwobath,threebedroomtwobath)mustprovideanaccessibleentrylevelandallcommon‐usefacilitiesincompliancewiththeFairHousingGuidelines,andincludeaminimumofonebedroomandonebathroomorpowderroomattheentrylevel.(C)TheDevelopmentOwnerisandwillremainincompliancewithstateandfederallaws,includingbutnotlimitedto,fairhousinglaws,includingChapter301,PropertyCode,TitleVIIIoftheCivilRightsActof1968(42U.S.C.§§3601etseq.),theFairHousingAmendmentsActof1988(42U.S.C.§§3601etseq.);theCivilRightsActof1964(42U.S.C.§§2000aetseq.);theAmericanswithDisabilitiesActof1990(42U.S.C.§§12101etseq.);theRehabilitationActof1973(29U.S.C.§§701etseq.);FairHousingAccessibility;theTexas Fair Housing Act; and that the Development is designed consistent with the Fair Housing ActDesignManualproducedbyHUD,theCodeRequirementsforHousingAccessibility2000(orasamendedfrom time to time)producedby the International CodeCouncil and theTexasAccessibility Standards.(§2306.257;§2306.6705(7))(D)All Applications proposingRehabilitation (includingReconstruction)will be treated as SubstantialAlteration,inaccordancewith§1.205ofthistitle.

The Texas Department of Housing and Community Affairs (the “Department”) proposes new 10 TAC Chapter 10, Subchapter C §§10.201 - 10.207, concerning the Uniform Multifamily Rules. The purpose of the proposed new sections is to provide guidance for application submission, define what would cause an applicant and application to be ineligible for consideration of multifamily funding, and explain processes regarding Board decisions. The proposed repeal of existing Subchapter C is published concurrently with this rulemaking. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the new sections are in effect, enforcing or administering the new sections does not have any foreseeable implications related to new costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of the new sections will be to provide additional clarity regarding requirements for application submission, define ineligible applicants and applications, and explain processes regarding Board decisions. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no new or additional economic effect on small or micro-businesses. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015 to October 15, 2015, to receive input on the new sections. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764, attn: Teresa Morales. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The new sections are proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the new sections are proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed new sections affect Chapter 2306 of the Texas Government Code, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The new sections affect no other statutes, articles or codes. §10.201 Procedural Requirements for Application Submission. §10.202 Ineligible Applicants and Applications.

§10.203 Public Notifications. §10.204 Required Documentation for Application Submission. §10.205 Required Third Party Reports. §10.206 Board Decisions. §10.207 Waiver of Rules for Applications.

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SubchapterC

ApplicationSubmissionRequirements,IneligibilityCriteria,BoardDecisionsandWaiverofRulesforApplications

§10.201.ProceduralRequirementsforApplicationSubmission.Thepurposeofthissectionistoidentifythe procedural requirements for Application submission. Only one Application may be submitted for aDevelopmentSiteinanApplicationRound.WhiletheApplicationAcceptancePeriodisopenorpriortotheApplication deadline, an Applicantmaywithdraw an Application and subsequently file a new Applicationutilizing theoriginalpre‐application fee (asapplicable) thatwaspaidas longasno substantiveevaluationwasperformedbytheDepartment.Applicantsaresubject tothescheduleof feesasset forth in§10.901ofthis chapter (relating to Fee Schedule). Unless it submits and receives Board approval for a materialamendment,anApplicantthatprovidesmaterialstoaneighborhoodorganization,alocalgovernmentalbody,orastaterepresentativetosecuresupport(includingmaterialsinapre‐applicationorapplication)maynotchangeanyunitorcommonamenity(ies)depictedordescribedinsuchmaterialsoralterthesize,number,orconfigurationofbuildingsreflectedinsuchmaterials.

(1)GeneralRequirements.

(A) An Applicant requesting funding from theDepartmentmust submit an Application in order to beconsidered for an award. An Application must be complete (including all required exhibits andsupportingmaterials)andsubmittedbytherequiredprogramdeadline.IfanApplication, includingthecorrespondingApplicationfeeasdescribedin§10.901ofthischapter,isnotsubmittedtotheDepartmentonorbeforetheapplicabledeadline,theApplicantwillbedeemednottohavemadeanApplication.

(B) Applying formultifamily funds from theDepartment is a technical process thatmust be followedcompletely.Asaresultofthecompetitivenatureofsomefundingsources,anApplicantshouldproceedontheassumptionthatdeadlinesare fixedandfirmwithrespecttobothdateandtime,andcannotbewaivedexceptwhereauthorized,andfortrulyextraordinarycircumstances,suchastheoccurrenceofasignificantnaturaldisasterthatmakestimelyadherenceimpossible.IfanApplicantchoosestosubmitbydelivering an item physically to the Department, it is the Applicant's responsibility to be within theDepartment's doors by the appointed deadline. Applicants are strongly encouraged to submit therequireditemswellinadvanceofestablisheddeadlines.Applicantsshouldensurethatalldocumentsarelegible, properly organized and tabbed, and that digital media is fully readable by the Department.Departmentstaffreceivinganapplicationmayperformacursoryreviewtosee if thereareanyglaringproblems.ThisisacursoryreviewandmaynotberelieduponasconfirmationthattheApplicationwascompleteorinproperform.

(C) The Applicant must upload deliver one (1) CD‐R containing a PDF copy and Excel copy of thecompleteApplicationtotheDepartment’ssecurewebtransferserver.Eachcopymustbeinasinglefileand individually bookmarked in the order required by the Multifamily Programs ProceduresManual.Additional files required for Application submission (e.g., Third Party Reports) outside the UniformApplicationmustalsobeuploadedtothesecurewebtransferservermaybeincludedonthesameCD‐RoraseparateCD‐RastheApplicantseesfit.ItistheresponsibilityoftheApplicanttoconfirmtheuploadtothe Department’s secureweb transfer serverwas successful and to do so in advance of the deadline.Wherethereare instancesofcomputer,mysteryglitches,etc. thatprevents theApplication frombeingreceivedbytheDepartmentpriortothedeadlinetheApplicationmaybeterminated.

(D)Applicationsmustincludematerialsaddressingeachandalloftheitemsenumeratedinthischapterandotherchaptersasapplicable.IfanApplicantdoesnotbelievethataspecificitemshouldbeapplied,theApplicantmust include, in itsplace,astatement identifying therequired item,stating that it isnotbeingsupplied,andastatementastowhytheApplicantdoesnotbelieveitshouldberequired.

Chapter10SubchapterC 20162015

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(2) Filing of Application for Tax‐Exempt BondDevelopments. Applications may be submitted to theDepartmentasdescribedinsubparagraphs(A)and(B)ofthisparagraph.MultiplesiteapplicationsforTax‐ExemptBondDevelopmentswillbeconsideredtobeoneApplicationasidentifiedinTexasGovernmentCode,Chapter1372.ApplicationswillberequiredtosatisfytherequirementsoftheQualifiedAllocationPlan(QAP)and Uniform Multifamily Rules in place at the time the Application is received by the Department.Applications that receive a Traditional Carryforward designation after November 15will not be accepteduntilafter January2andwillbesubject to theQAPandUniformMultifamilyRules inplaceat the timetheApplicationisreceivedbytheDepartment.

(A) Lottery Applications. For Applicants participating in the TBRB lottery for private activity bondvolume cap andwhereby advance notice is given regarding a Certificate ofReservation, theApplicantmustsubmitaNoticetoSubmitLotteryApplicationformtotheDepartmentnolaterthantheNoticetoSubmitLotteryApplicationDeliveryDatedescribedin§10.4ofthischapter(relatingtoProgramDates).ThecompleteApplication,accompaniedbytheApplicationFeedescribedin§10.901ofthischaptermustbesubmittednolaterthantheApplicationsAssociatedwithLotteryDeliveryDatedescribedin§10.4ofthischapter.

(B) Waiting List Applications. Applications designated as Priority 1 or 2 by the TBRB and receivingadvancenoticeofaCertificateofReservationforprivateactivitybondvolumecapmustsubmitParts1‐4oftheApplicationandtheApplicationFeedescribedin§10.901ofthischapterpriortotheissuanceoftheCertificateofReservationbytheTBRB.TheremainingpartsoftheApplicationmustbesubmittedatleastseventy‐five (75)daysprior to theBoardmeetingatwhich thedecisionto issueaDeterminationNoticewouldbemade.AnApplicationdesignatedasPriority3willnotbeaccepteduntilaftertheissuerhas induced the bonds, with such documentation included in the Application, and is subject to thefollowingadditionaltimeframes:

(i)TheApplicantmustsubmittotheDepartmentconfirmationthataCertificateofReservationfromtheTBRBhas been issuednotmore than thirty (30) days after theApplication is received by theDepartment. The Executive Director may, for good cause, approve an extension for up to anadditional fifteen (15)days to submit confirmation theCertificateofReservationhas been issued.The Application will be terminated if the Certificate of Reservation is not received within therequiredtimeframe;

(ii) The Department will require at least seventy‐five (75) days to review an Application, unlessDepartmentstaffcancomplete itsevaluation insufficient time forBoardconsideration.Applicantsshouldbe aware that unusual financing structures, portfolio transactions, and theneed to resolveAdministrative Deficiencies may require additional time to review and the prioritization ofApplicationswillbesubjecttothereviewpriorityestablishedinparagraph(6)ofthissubsection;

(iii) Department staff may choose to delay presentation to the Board in instances in which anApplicant is not reasonably expected to close within sixty (60) days of the issuance of aDeterminationNotice.ApplicationsthatreceiveTraditionalCarryforwardwillbesubjecttoclosingwithin the same timeframe as would be typical of the Certificate of Reservation. This will be aconditionoftheawardandreflectedintheDeterminationNotice.

(3)CertificationofTaxExemptBondApplicationswithNewDocketNumbers.ApplicationsthatreceiveanaffirmativeBoardDetermination,butforwhichclosingonthebondsdoesnotoccurpriortotheCertificateofReservationexpirationdate,andwhichsubsequentlyhavethatdocketnumberwithdrawnfromtheTBRB,may have their Determination Notice reinstated. In the event that the Department's Board has not yetapprovedtheApplication,theApplicationwillcontinuetobeprocessedandultimatelyprovidedtotheBoardforconsiderationTheApplicantwouldneed toreceiveanewdocketnumber fromtheTBRBandmeet therequirementsdescribedinsubparagraphs(A)‐(C)ofthisparagraph:


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(A)TheApplicationmustremainunchanged,whichmeansthatataminimum,thefollowingcannothavechanged: Site Control, total number of Units, unit mix (bedroom sizes and income restrictions),design/site plan documents, financial structure including bond and Housing Tax Credit amounts,development costs, rent schedule, operating expenses, sources and uses, ad valorem tax exemptionstatus,TargetPopulation,scoringcriteria(ifTDHCAisbondissuer)orTBRBprioritystatusincludingtheeffectonthe inclusivecapturerate.Theentities involved in theApplicantentityandDevelopercannotchange;however,thecertificationcanbesubmittedevenif thelender,syndicatoror issuerchanges,aslongasthefinancingstructureandtermsremainunchanged.Notificationsunder§10.203ofthischapter(relating to Public Notifications (§2306.6705(9))) are not required to be reissued. A revisedDeterminationNoticewill be issued once notice of the assignment of a new docket number has beenprovidedtotheDepartmentandtheDepartmenthasconfirmedthatthecapturerateandmarketdemandremainacceptable.Thiscertificationmustbesubmittednolaterthanthirty(30)calendardaysafterthedatetheTBRBissuesthenewdocketnumber.;or

(B) the newdocket numbermay not be issuedmore than four (4)months from the date the originalapplicationwaswithdrawn from theTBRB. The newdocket numbermust be from the sameprogramyear as the original docket number or, for Applications that receive a new docket number from theprogram year that is immediately succeeding the program year of the original docket number, therequirementsinclauses(i)and(ii)ofthissubparagraphmustbemet:

(i)TheApplicantmustcertifythattheDevelopmentwillmeetallrulesandrequirementsineffectatthetimethenewdocketnumberisissued;and

(ii)TheDepartmentmustdeterminethatthechangesintherulesapplicabletotheprogram(s)underwhichtheApplicationwasoriginallyawardedarenotofamaterialnaturethatwouldnecessitateanewApplicationandthatanynewformsandclarificationstotheApplicationareofanaturethatcanberesolvedthroughtheAdministrativeDeficiencyprocess;or

(C)iftherearechangestotheApplicationasreferencedinsubparagraph(A)ofthisparagraphorifsuchchanges in the rules pursuant to subparagraph (B)(ii) of this paragraph are of a material nature theApplicant will be required to submit a new Application in full, along with the applicable fees, to bereviewed and evaluated in its entirety for a newDeterminationNotice to be issued. If there is publicoppositionbuttheApplicationremainsthesamepursuanttosubparagraph(A)ofthisparagraph,anewApplicationwillnotberequiredtobesubmitted;however,theApplicationmustbepresentedbeforetheBoardforconsiderationofthere‐issuanceoftheDeterminationNotice.

(4)WithdrawalofApplication. AnApplicantmaywithdrawanApplicationprior toorafter receiving anawardof fundingby submitting to theDepartmentwrittennoticeof thewithdrawal.AnApplicantmaybesubjecttoafeeassociatedwithawithdrawalifwarrantedandallowableunder§10.901ofthischapter.

(5)EvaluationProcess. PriorityApplications,which shall include thoseApplicationsbelieved likely tobecompetitive, will undergo a program review for compliance with submission requirements and selectioncriteria,asapplicable.Ingeneral,ApplicationreviewsbytheDepartmentshallbeprioritizedbaseduponthelikelihoodthatanApplicationwillbecompetitiveforanawardbasedupontheset‐aside,selfscore,receiveddate,orotherrankingfactors.Thus,non‐competitiveorlowerscoringApplicationsmayneverbereviewed.TheDirectorofMultifamilyFinancewill identify thoseApplications thatwill receivea fullprogramreviewbased upon a reasonable assessment of eachApplication's priority, but noApplicationwith a competitiverankingshallbeskippedorotherwiseoverlooked.Thisinitialassessmentmaybeahighlevelassessment,nota full assessment. Applications deemed to be priority Applications may change from time to time. TheDepartment shall underwrite Applications that received a full program review and remain competitive todetermine financial feasibility and an appropriate funding amount. In making this determination, theDepartmentwilluse§10.302ofthischapter(relatingtoUnderwritingRulesandGuidelines)and§10.307ofthischapter(relatingtoDirectLoanRequirements).TheDepartmentmayhaveanexternalpartyperformall


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orpartornoneoftheunderwritingevaluationtotheextent itdeterminesappropriate.Theexpenseofanyexternal underwriting shall be paid by the Applicant prior to the commencement of the aforementionedevaluation. Applications will undergo a previous participation review in accordance with Chapter 1SubchapterC§1.5ofthistitle(relatingtoPreviousParticipationReviews)andDevelopmentSiteconditionsmaybeevaluatedthroughaphysicalsiteinspectionbytheDepartmentoritsagents.

(6)PrioritizationofApplicationsundervariousPrograms.Thisparagraph identifieshow tiesorotherprioritization matters will be handled when dealing with de‐concentration requirements, capture ratecalculations,andgeneralreviewpriorityofApplicationssubmittedunderdifferentprograms.

(A)De‐concentrationandCaptureRate.PrioritywillbeestablishedbasedontheearlierdateassociatedwithanApplication.Thedatesthatwillbeusedtoestablishpriorityareasfollows:

(i)ForTax‐ExemptBondDevelopments,theissuancedateoftheCertificateofReservationissuedbytheTBRB;and(ii)ForallotherDevelopments,thedatetheApplicationisreceivedbytheDepartment;and(iii)Notwithstandingtheforegoing,afterJuly31,aTax‐ExemptBondDevelopmentwithaCertificateofReservationfromtheTBRBwilltakeprecedenceoveranyHousingTaxCreditApplicationfromthecurrentApplicationRoundonthewaitinglist.

(B)GeneralReviewPriority.ReviewpriorityforApplicationsundervariousmultifamilyprogramswillbeestablished based on Department staff's consideration of any statutory timeframes associated with aprogramorApplicationinrelationtothevolumeofApplicationsbeingprocessed.Ingeneral,thosewithstatutorydeadlinesormorerestrictivedeadlineswillbeprioritizedforreviewandprocessingaheadofthose thatarenotsubject to thesameconstraints. Ingeneral,anynon‐CompetitiveHousingTaxCreditApplications received during the competitive tax credit round will take longer to process due to thestatutoryconstraintsontheawardandallocationofcompetitivetaxcredits.

(7)AdministrativeDeficiencyProcess.Thepurposeof theAdministrativeDeficiencyprocess is toallowstaff to request that an Applicant provide clarification, correction, or non‐materialmissing information toresolve inconsistencies in the originalApplicationor to assist staff in evaluating theApplication. Staffwillrequest such information via a deficiency notice. The reviewmay occur in several phases and deficiencynoticesmaybeissuedduringanyofthesephases.Staffwillsendthedeficiencynoticeviaane‐mail,orifane‐mailaddressisnotprovidedintheApplication,byfacsimiletotheApplicantandoneothercontactpartyifidentified by the Applicant in the Application. The time period for responding to a deficiency noticecommencesonthefirstbusinessdayfollowingthedeficiencynoticedate.DeficiencynoticesmaybesenttoanApplicantpriortooraftertheendoftheApplicationAcceptancePeriodandmayalsobesentinresponsetoreviews on post‐award submissions. Responses are required to be submitted electronically as a PDF ormultiple PDF files. A review of the response provided by the Applicant may reveal that issues initiallyidentified as an Administrative Deficiency are actually determined to be beyond the scope of anAdministrative Deficiency process, meaning that they in fact implicated matters of a material nature notsusceptibletobeingresolved.DepartmentstaffmayingoodfaithprovideanApplicantconfirmationthatanAdministrativeDeficiencyresponsehasbeenreceivedorthatsuchresponseissatisfactory.Communicationsfromstaffthattheresponsewassatisfactorydonotestablishanyentitlementtopoints,eligibilitystatus,ortoany presumption of having fulfilled any requirements. Final determinations regarding the sufficiency ofdocumentation submitted to cureanAdministrativeDeficiencyaswell as thedistinctionbetweenmaterialand non‐material missing information are reserved for the Director of Multifamily Finance, ExecutiveDirector,andBoard.

(A)AdministrativeDeficiencies forCompetitiveHTCApplications.Unlessanextensionhasbeen timelyrequested and granted, if an Administrative Deficiency is not resolved to the satisfaction of theDepartment by5:00p.m. on the fifth business day following thedate of thedeficiencynotice, then (5points)shallbedeductedfromtheselectioncriteriascoreforeachadditionaldaythedeficiencyremains


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unresolved. If Administrative Deficiencies are not resolved by 5:00 p.m. on the seventh business dayfollowingthedateofthedeficiencynotice,thentheApplicationshallbeterminated.AnApplicantmaynotchange or supplement any part of anApplication in anymanner after the filing deadline orwhile theApplicationisunderconsiderationforanaward,andmaynotaddanyset‐asides,increasetherequestedcredit amount, revise theUnitmix (both income levels andBedroommixes), or adjust their self‐scoreexcept in response to a direct request from theDepartment to do so as a result of anAdministrativeDeficiency. (§2306.6708(b); §2306.6708) To the extent that the review of Administrative Deficiencydocumentationalters the scoreassigned to theApplication,Applicantswillbe re‐notifiedof their finaladjustedscore.

(B) Administrative Deficiencies for all other Applications or sources of funds. If AdministrativeDeficienciesarenotresolvedtothesatisfactionoftheDepartmentby5:00p.m.onthefifthbusinessdayfollowingthedateofthedeficiencynotice,thenanAdministrativeDeficiencyNoticeLateFeeof$500foreachbusinessday thedeficiency remainsunresolvedwill be assessed, and theApplicationwill notbepresented to the Board for consideration until all outstanding fees have been paid. Applicationswithunresolveddeficienciesafter5:00p.m.onthetenthdayfollowingthedateofthedeficiencynoticemaybeterminated.TheApplicantwillberesponsibleforthepaymentoffeesaccruedpursuanttothisparagraphregardless of any termination. Department staff may or may not assess an Administrative DeficiencyNoticeLateFeefororterminateApplicationsforTax‐ExemptBondorDirectLoanDevelopmentsduringperiodswhen private activity bond volume cap or Direct Loan funds are undersubscribed. Applicantsshouldbepreparedforadditionaltimeneededforcompletionofstaffreviewsasdescribedinparagraph(2)(B)ofthissection.

(8)LimitedPriorityReviews.If,afterthesubmissionoftheApplication,anApplicantidentifiesanerrorinthe Application that would generally be the subject of an Administrative Deficiency, the Applicant mayrequestalimitedpriorityreviewofthespecificandlimitedissuesinneedofclarificationorcorrection.TheissuemaynotrelatetothescoreofanApplication.ThislimitedpriorityreviewmayonlycoverthespecificissueandnottheentireApplication.Ifthelimitedpriorityreviewresultsintheidentificationofanissuethatdoes indeedneed correction or clarification, staffwill request such through theAdministrativeDeficiencyprocessasstatedinparagraph(7)ofthissection,ifdeemedappropriate.Alimitedpriorityreviewisintendedtoaddress:

(A)clarificationofissuesthatDepartmentstaffwouldhavedifficultyidentifyingduetotheomissionofinformationthattheDepartmentmayhaveaccesstoonlythroughApplicantdisclosure,suchasapriorremoval from a tax credit transaction or participation in a Development that is not identified in thepreviousparticipationportionoftheApplication;or

(B) technical correction of non‐material information that would cause an Application deemed non‐competitive tobedeemedcompetitiveand, therefore, subject toa staff review.Forexample, failure tomark the Nonprofit Set‐Aside in an Application that otherwise included complete submission ofdocumentationforparticipationintheNonprofitSet‐Aside.

(9) Challenges to Opposition for Tax‐Exempt Bond Developments. Any written statement from aNeighborhoodOrganization expressing opposition to anApplicationmay be challenged if it is contrary tofindings or determinations, including zoning determinations, of a municipality, county, school district, orother local Governmental Entity having jurisdiction or oversight over the finding or determination. If anysuch comment is challenged, the challenger must declare the basis for the challenge and submit suchchallengebytheChallengestoNeighborhoodOrganizationOppositionDeliveryDateasidentifiedin§10.4ofthischapter.TheNeighborhoodOrganizationexpressingoppositionwillbegivenseven(7)calendardaystoprovide any information related to the issue of whether their assertions are contrary to the findings ordeterminationsofalocalGovernmentalEntity.AllsuchmaterialsandtheanalysisoftheDepartment'sstaffwill be provided to a fact finder, chosen by the Department, for review and a determination of the issuepresented by this subsection. The fact finder will not make determinations as to the accuracy of thestatements presented, but only with regard to whether the statements are contrary to findings or


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determinationsofa localGovernmentalEntity.Thefact finder'sdeterminationwillbefinalandmaynotbewaivedorappealed.

§10.202.IneligibleApplicantsandApplications.ThepurposeofthissectionistoidentifythosesituationsinwhichanApplicationorApplicantmaybeconsideredineligibleforDepartmentfundingandsubsequentlyterminated.Ifsuchineligibilityisdeterminedbystafftoexist,thenpriortoterminationtheDepartmentmaysendanotice to theApplicantandprovide themtheopportunity toexplainhowtheybelieve theyor theirApplicationiseligible.Theitemslistedinthissectionincludethoserequirementsin§42oftheCode,TexasGovernmentCode,Chapter2306,andothercriteriaconsideredimportantbytheDepartment,anddoesnotrepresentanexhaustivelistof ineligibilitycriteriathatmayotherwisebeidentifiedinapplicablerulesoraNOFAspecifictotheprogrammaticfunding.

(1)Applicants.AnApplicantshallbeconsideredineligibleifanyofthecriteriainsubparagraphs(A)‐(N)ofthisparagraphapplytotheApplicant. IfanyofthecriteriaapplytoanyothermemberoftheDevelopmentTeam,theApplicantwillalsobedeemedineligibleunlessasubstitutionofthatDevelopmentTeammemberisspecifically allowable under theDepartment's rules and sought by theApplicantor appropriate correctiveactionhasbeenacceptedandapprovedbytheDepartment.AnApplicantisineligibleiftheApplicant:

(A)hasbeenorisbarred,suspended,orterminatedfromprocurementinastateorFederalprogramorlistedinHUD’sSystemforAwardManagement(SAM);(§2306.0504)

(B)hasbeenconvictedofastateorfederalfelonycrimeinvolvingfraud,bribery,theft,misrepresentationofmaterial fact,misappropriationof funds,orother similar criminaloffenseswithin fifteen (15)yearsprecedingtheApplicationsubmission;

(C)is,atthetimeofApplication,subjecttoanenforcementordisciplinaryactionunderstateorfederalsecurities lawor by theNASD; subject to a federal tax lien; or the subject of a proceeding inwhich aGovernmentalEntityhas issuedanorder to imposepenalties, suspend funding,or takeadverseactionbasedonanallegationoffinancialmisconductoruncuredviolationofmateriallaws,rules,orotherlegalrequirementsgoverningactivitiesconsideredrelevantbytheGovernmentalEntity;

(D)hasbreachedacontractwithapublicagency,and,ifsuchbreachispermittedtobecuredunderthecontract,hasbeengivennoticeofthebreachandareasonableopportunitytocure,andfailedtocurethatbreachwithinthetimespecifiedinthenoticeofbreach;

(E) has misrepresented to a subcontractor the extent to which the Developer has benefited fromcontracts or financial assistance that has been awardedby a public agency, including the scopeof theDeveloper'sparticipationincontractswiththeagency,andtheamountoffinancialassistanceawardedtotheDeveloperbytheagency;

(F)hasbeenfoundbytheBoardtobeineligiblebasedonapreviousparticipationreviewperformedinaccordancewithChapter1SubchapterC§1.5ofthistitle;

(G)isdelinquentinanyloan,fee,orescrowpaymentstotheDepartmentinaccordancewiththetermsoftheloan,asamended,orisotherwiseindefaultwithanyprovisionsofsuchloans;

(H)hasfailedtocureanypastduefeesowedtotheDepartmentatleastten(10)dayspriortotheBoardmeetingatwhichthedecisionforanawardistobemade;

(I) is in violationof a state revolvingdoororother standardof conductor conflict of interest statute,includingTexasGovernmentCode,§2306.6733,oraprovisionofTexasGovernmentCode,Chapter572,inmaking,advancing,orsupportingtheApplication;


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(J) has previous cContracts or cCommitments that have been partially or fully deobligated during thetwelve(12)monthspriortothesubmissionof theApplication,andthroughthedateof finalallocationduetoafailuretomeetcontractualobligations,andthePersonPartyisonnoticethatsuchdeobligationresultsinineligibilityunderthischapter;

(K) has provided fraudulent information, knowingly falsified documentation, or other intentional ornegligentmaterialmisrepresentationoromissioninanApplicationorCommitment,aspartofachallengetoanotherApplicationoranyotherinformationprovidedtotheDepartmentforanyreason.Theconductdescribed in this subparagraph is also a violationof this chapter andwill subject theApplicant to theassessmentofadministrativepenaltiesunderTexasGovernmentCode,Chapter2306andthistitle;

(L)wastheownerorAffiliateoftheownerofaDepartmentHOMEorNSP‐assistedrentaldevelopmentfor which the federal affordability requirements were prematurely terminated and the affordabilityrequirementshavenotre‐affirmedorHOMEorNSPfundsrepaid;

(M) fails to disclose, in the Application, any Principal or any entity or Person in the Developmentownershipstructurewhowasor is involvedasaPrincipal inanyotheraffordablehousingtransaction,voluntarily or involuntarily, that has terminated voluntarily or involuntarily within the past ten (10)years or plans to or is negotiating to terminate their relationship with any other affordable housingdevelopment.Failuretodiscloseisgroundsfortermination.Thedisclosuremustidentifythepersonorpersonsanddevelopmentinvolved,theidentityofeachotherdevelopment,andcontactinformationfortheotherPrincipalsofeachsuchdevelopment,anarrativedescriptionofthefactsandcircumstancesofthe termination or proposed termination, and any appropriate supporting documents. An Applicationmay be terminated based upon factors in the disclosure. The Executive Director shallmake an initialdeterminationwhether thepersonorpersonsshouldbe involved in theApplicationwithin thirty (30)days after the date on which the Applicant hasmade full disclosurereceives a preliminary deficiencynoticewithrespecttotheApplication, includingprovidinginformationresponsivetoanysupplementalDepartment requests. The decision of the Executive Director may be appealed in accordance with§10.902ofthischapter.IftheExecutiveDirectorhasnotmadeandissuedsuchaninitialdeterminationon or before the day thirty (30) days after the date onwhich the Applicant hasmade full disclosure,includingproviding informationresponsive toanysupplementalDepartmentstaffrequests, thepersonorpersonsmadethesubjectofthedisclosureshallbepresumptivelyfittoproceedintheircurrentroleorroles. Such presumption in no way affects or limits the ability of the Department staff to initiatedebarmentproceedingsundertheDepartment'sdebarmentrulesatafuturetimeifitfindsthatfactsandcircumstanceswarrantingdebarmentexist.IntheExecutiveDirector'smakinganinitialdeterminationortheBoard'smakingafinaldeterminationastoaperson'sfitnesstobeinvolvedasaprincipalwithrespecttoanApplication,thefactorsdescribedinclauses(i)‐(v)ofthissubparagraphshallbeconsidered:

(i) the amount of resources in a development and the amount of the benefit received from thedevelopment;

(ii) the legal and practical ability to address issues thatmay haveprecipitated the termination orproposedterminationoftherelationship;

(iii)theroleofthepersonincausingormateriallycontributingtoanyproblemswiththesuccessofthedevelopment;

(iv)theperson'scompliancehistory,includingcompliancehistoryonotherdevelopments;and

(v) any other facts or circumstances that have amaterial bearing on the question of the person'sability to be a compliant and effective participant in their proposed role as described in theApplication;or


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(N) is found tohaveparticipated in thedisseminationofmisinformationaboutaffordablehousingandthe persons it serves or about a competing Applicant that would likely have the effect of fomentingoppositiontoanApplicationwheresuchoppositionisnotbasedinsubstantiveandlegitimateconcernsthat do not implicate potential violations of fair housing laws. Nothing herein shall be construed oreffectuatedinamannertodepriveapersonoftheirrightoffreespeech,butitisarequirementofthosewhovoluntarilychoosetoparticipateinthisprogramthattheyrefrainfromparticipatingintheabove‐described inappropriatebehaviors.Applicantsmay informDepartmentstaffaboutactivitiespotentiallyprohibitedbythisprovisionoutsideoftheThirdPartyRequestforAdministrativeDeficiencychallengeprocessdescribedin§11.10ofthistitle(relatingtoThirdPartyRequestforAdministrativeDeficiencyforChallenges of Competitive HTC Applications). An Applicant submitting documentation of a potentialviolation may not appeal any decision that is made with regard to another competing Applicant'sapplication.

(2)Applications.AnApplicationshallbe ineligible if anyof thecriteria in subparagraphs (A) ‐ (C)of thisparagraphapplytotheApplication:

(A)aviolationofTexasGovernmentCode,§2306.1113,existsrelatingtoExParteCommunication.AnexpartecommunicationoccurswhenanApplicantorPersonrepresentinganApplicantinitiatessubstantivecontact(otherthanpermittedsocialcontact)withaboardmember,orviceversa,inasettingotherthanadulypostedandconvenedpublicmeeting,inanymannernotspecificallypermittedbyTexasGovernmentCode,§2306.1113(b).Suchactionisprohibited.ForApplicantsseekingfundingafterinitialawardshavebeenmade,suchaswaitinglistApplicants,theexpartecommunicationprohibitionremainsineffectsolongastheApplicationremainseligibleforfunding.TheexparteprovisiondoesnotprohibittheBoardfromparticipatinginsocialeventsatwhichaPersonwithwhomcommunicationsareprohibitedmay,orwillbepresent;providedthatnomattersrelatedtoanyApplicationbeingconsideredbytheBoardmaybediscussed.Anattemptedbutunsuccessfulprohibitedexpartecommunication,suchasalettersenttooneormoreboardmembersbutnotopened,maybecuredbyfulldisclosureinapublicmeeting,andtheBoardmayreinstatetheApplicationandestablishappropriateconsequences forcuredactions,suchasdenialofthemattersmadethesubjecttothecommunication.

(B) the Application is submitted after the Application submission deadline (time or date); is missingmultiplepartsoftheApplication;orhasaMaterialDeficiency;or

(C)foranyDevelopmentutilizingHousingTaxCreditsorTax‐ExemptBonds:

(i) at the time of Application or at any time during the two‐year period preceding the date theApplication Round begins (or for Tax‐Exempt Bond Developments any time during the two‐yearperiodprecedingthedatetheApplicationissubmittedtotheDepartment),theApplicantoraRelatedParty is or has been a member of the Board or employed by the Department as the ExecutiveDirector, Chief of Staff, General Counsel, a Deputy Executive Director, the Director of MultifamilyFinance,theChiefofCompliance,theDirectorofRealEstateAnalysis,amanagerovertheprogramfor which an Application has been submitted, or any person exercising such responsibilitiesregardlessofjobtitle;or(§2306.6703(a)(1);§2306.6733);

(ii) the Applicant proposes to replace in less than fifteen (15) years any private activity bondfinancing of the Development described by the Application, unless the exceptions in§2306.6703(a)(2)oftheTexasGovernmentCodearemet.

§10.203. Public Notifications (§2306.6705(9)). A certification, as provided in the Application, that theApplicant met the requirements and deadlines identified in paragraphs (1) ‐ (3) of this section must besubmitted with the Application. For Applications utilizing Competitive Housing Tax Credits, notificationsmustnotbeolder than three(3)months fromthe firstdayof theApplicationAcceptancePeriod.ForTax‐ExemptBondDevelopmentsnotificationsandproofthereofmustnotbeolderthanthree(3)monthspriorto


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thedateParts5and6oftheApplicationaresubmitted,andforallotherApplicationsnoolderthanthree(3)months prior to the date the Application is submitted. If notifications were made in order to satisfyrequirementsofpre‐applicationsubmission(ifapplicabletotheprogram)forthesameApplication,thennoadditionalnotificationisrequiredatApplication.However,re‐notificationisrequiredbyallApplicantswhohavesubmittedachangefrompre‐applicationtoApplicationthatreflectsatotalUnitincreaseofgreaterthan10percentora5percentincreaseindensity(calculatedasunitsperacre)asaresultofachangeinthesizeoftheDevelopmentSite.Inaddition,shouldachangeinelectedofficialoccurbetweenthesubmissionofapre‐application and the submission of an Application, Applicants are required to notify the newly elected (orappointed)official.

(1)NeighborhoodOrganizationNotifications.

(A)TheApplicantmustidentifyandnotifyallNeighborhoodOrganizationsonrecordwiththecountyorthe state as of 30 days prior to the Full ApplicationDelivery Date andwhose boundaries include theproposedDevelopmentSite.(B) The Applicant must list, in the certification form provided in the Application, all NeighborhoodOrganizationsonrecordwiththecountyorstateasof30dayspriortotheFullApplicationDeliveryDateandwhoseboundariesincludetheproposedDevelopmentSiteasofthesubmissionoftheApplication.

(2)NotificationRecipients.NolaterthanthedatetheApplicationissubmitted,notificationmustbesenttoallofthepersonsorentitiesidentifiedinsubparagraphs(A)‐(H)ofthisparagraph.Developmentslocatedinan Extra Territorial Jurisdiction (ETJ) of a city are required to notify both city and county officials. Thenotificationsmaybesentbye‐mail,faxormailwithreturnreceiptrequestedorsimilartrackingmechanismin the format required in the Application Notification Template provided in the Application. Evidence ofnotificationisrequiredintheformofacertificationprovidedintheApplication.TheApplicantisencouragedto retainproofofdelivery in the event it is requestedby theDepartment.Evidenceofproof ofdelivery isdemonstratedbyasignedreceiptformailorcourierdeliveryandconfirmationofreceiptbyrecipientforfaxande‐mail.Officialstobenotifiedarethoseofficials inofficeatthetimetheApplicationissubmitted.Notethat between the timeof pre‐application (ifmade) and full Application, suchofficialsmay change and theboundariesoftheirjurisdictionsmaychange.Bywayofexampleandnotbywayoflimitation,eventssuchasredistrictingmaycausechangeswhichwillnecessitateadditionalnotificationsat fullApplication.Meetingsanddiscussionsdonotconstitutenotification.Onlyatimelyandcompliantwrittennotificationtothecorrectpersonconstitutesnotification.

(A) Neighborhood Organizations on record with the state or county as of 30 days prior to the FullApplicationDeliveryDatewhoseboundariesincludetheDevelopmentSite;(B)SuperintendentoftheschooldistrictinwhichtheDevelopmentSiteislocated;(C) Presiding officer of the board of trustees of the school district in which the Development Site islocated;(D)Mayor of themunicipality (if the Development Site is within amunicipality or its extraterritorialjurisdiction);(E)AllelectedmembersoftheGoverningBodyofthemunicipality(if theDevelopmentSite iswithinamunicipalityoritsextraterritorialjurisdiction);(F)PresidingofficeroftheGoverningBodyofthecountyinwhichtheDevelopmentSiteislocated;(G)AllelectedmembersoftheGoverningBodyofthecountyinwhichtheDevelopmentSiteislocated;and(H)StateSenatorandStateRepresentativeof thedistrictswhoseboundaries include theDevelopmentSite.


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(3)ContentsofNotification.

(A) The notificationmust include, at aminimum, all information described in clauses (i) ‐ (vi) of thissubparagraph.

(i)theApplicant'sname,address,individualcontactname,andphonenumber;(ii)theDevelopmentname,address,cityandcounty;(iii) a statement indicating the program(s) to which the Applicant is applying with the TexasDepartmentofHousingandCommunityAffairs;(iv) whether the Development proposes New Construction, Reconstruction, Adaptive Reuse orRehabilitation;(v)thephysicaltypeofDevelopmentbeingproposed(e.g.singlefamilyhomes,duplex,apartments,townhomes,high‐riseetc.);and(vi)thetotalnumberofUnitsproposedandtotalnumberoflow‐incomeUnitsproposed.

(B)Thenotificationmaynotcontainanyfalseormisleadingstatements.Withoutlimitingthegeneralityoftheforegoing,thenotificationmaynotcreatetheimpressionthattheproposedDevelopmentwillserveexclusivelyaTargetPopulationtheelderlyunless100percentoftheUnitswillbeforQualifiedElderly,anditmaynotimplyorindicatethatitwilltargetorpreferanysubpopulationunlesssuchtargetingorpreferenceisinfullcompliancewithallapplicablestateandfederallaws,includingstateandfederalfairhousinglaws.

§10.204.RequiredDocumentationforApplicationSubmission.Thepurposeofthissectionistoidentifythe documentation that is required at the time of Application submission, unless specifically indicated orotherwiserequiredbyDepartmentrule.Ifanyofthedocumentationindicatedinthissectionisnotresolved,clarifiedorcorrectedtothesatisfactionoftheDepartmentthrougheitheroriginalApplicationsubmissionorthe Administrative Deficiency process, the Application will be terminated. Unless stated otherwise, alldocumentationidentifiedinthissectionmustnotbedatedmorethansix(6)monthspriortothecloseoftheApplication Acceptance Period or the date of Application submission as applicable to the program. TheApplicationmayinclude,orDepartmentstaffmayrequest,documentationorverificationofcompliancewithanyrequirementsrelatedtotheeligibilityofanApplicant,Application,DevelopmentSite,orDevelopment.

(1)CertificationofDevelopmentOwner.Thisform,asprovidedintheApplication,mustbeexecutedbytheDevelopment Owner and address the specific requirements associatedwith the Development. The Personexecuting the certification is responsible for ensuring all individuals referenced therein are in compliancewith the certification, that theyhavegiven itwithall requiredauthorityandwithactualknowledgeof thematters certified. Applicants must read the certification carefully as it contains certain construction andDevelopmentspecificationsthateachDevelopmentmustmeet.

(A) The Development will adhere to the Texas Property Code relating to security devices and otherapplicablerequirements forresidential tenancies,andwilladhere to localbuildingcodesor, ifno localbuildingcodesareinplace,thentothemostrecentversionoftheInternationalBuildingCode.

(B)ThisApplicationandallmaterialssubmittedtotheDepartmentconstituterecordsoftheDepartmentsubjecttoTexasGovernmentCode,Chapter552,andtheTexasPublicInformationAct.

(C)Allrepresentations,undertakingsandcommitmentsmadebyApplicantintheApplicationprocessforDevelopment assistance expressly constitute conditions to any Commitment, Determination Notice,Carryover Allocation, or Direct Loan Commitment for such Development which the Department mayissueoraward,andtheviolationofanysuchconditionshallbesufficientcauseforthecancellationandrescissionofsuchCommitment,DeterminationNotice,CarryoverAllocation,orDirectLoanCommitmentbytheDepartment.Ifanysuchrepresentations,undertakingsandcommitmentsconcernorrelatetothe


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ongoingfeaturesoroperationoftheDevelopment,theyshalleachandallshallbeenforceableevenifnotreflected in the Land Use Restriction Agreement. All such representations, undertakings andcommitments are also enforceable by the Department and the tenants of the Development, includingenforcement by administrative penalties for failure to perform, in accordance with the Land UseRestrictionAgreement.

(D) The Development Owner has read and understands the Department's fair housing educationalmaterialspostedontheDepartment'swebsiteasofthebeginningoftheApplicationAcceptancePeriod.

(E) The Development Owner agrees to implement a plan to useHistorically Underutilized Businesses(HUB)inthedevelopmentprocessconsistentwiththeHistoricallyUnderutilizedBusinessGuidelinesforcontractingwiththeStateofTexas.TheDevelopmentOwnerwillberequiredtosubmitareportofthesuccessoftheplanaspartofthecostcertificationdocumentation,inordertoreceiveIRSForms8609or,iftheDevelopmentdoesnothaveHousingTaxCredits,releaseofretainage.

(F)TheApplicantwill attempt toensure thatat least30percentof theconstructionandmanagementbusinesseswithwhichtheApplicantcontractsinconnectionwiththeDevelopmentareMinorityOwnedBusinessesasfurtherdescribedinTexasGovernmentCode,§2306.6734.

(G)TheDevelopmentOwnerwillaffirmativelymarkettoveteransthroughdirectmarketingorcontractswith veteran's organizations. The Development Owner will be required to identify how they willaffirmatively market to veterans and report to the Department in the annual housing report on theresults of themarketing efforts to veterans. Exceptions to this requirementmust be approved by theDepartment.

(H)TheDevelopmentOwnerwillcomplywithanyandallnoticesrequiredbytheDepartment.

(I)IftheDevelopmenthasanexistingLURAwiththeDepartment,theDevelopmentOwnerwillcomplywiththeexistingrestrictions.

(2)ApplicantEligibilityCertification.Thisform,asprovidedintheApplication,mustbeexecutedbyanyindividualsrequiredtobe listedontheorganizationalchartandalso identified insubparagraphs(A)–(D)below.TheformidentifiesthevariouscriteriarelatingtoeligibilityrequirementsassociatedwithmultifamilyfundingfromtheDepartment,includingbutnotlimitedtothecriteriaidentifiedunder§10.202ofthischapter(relatingtoIneligibleApplicantsandApplications).

(A)forfor‐profitcorporations,anyofficerauthorizedbytheboardofdirectors,regardlessoftitle,toacton behalf of the corporation, including but not limited to the president, vice president, secretary,treasurer,andallotherexecutiveofficers,andeachstockholderhavinga10percentormoreinterestinthecorporation,andanyindividualwhohasControlwithrespecttosuchstockholder;

(B) for non‐profit corporations or governmental instrumentalities (such as housing authorities), anyofficerauthorizedbytheboard,regardlessoftitle,toactonbehalfofthecorporation,includingbutnotlimited to thepresident, vicepresident, secretary, treasurer, andall otherexecutiveofficers, theAuditcommitteechair,theBoardchair,andanyoneidentifiedastheExecutiveDirectororequivalent;

(C) for trusts,allbeneficiaries thathavethe legalability toControl the trustwhoarenot just financialbeneficiaries;and

(D) for limited liabilitycompanies,allmanagers,managingmembers,membershavinga10percentormore interest in the limited liabilitycompany,any individualControllingsuchmembers,oranyofficerauthorizedtoactonbehalfofthelimitedliabilitycompany.


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(3) Architect Certification Form. This form, as provided in the Application, must be executed by theDevelopmentengineer,anaccreditedarchitectorDepartment‐approvedThirdPartyaccessibilityspecialist.(§2306.6722;and§2306.6730)

(4) Notice, Hearing, and Resolution for Tax‐Exempt Bond Developments. In accordance with TexasGovernment Code, §2306.67071, the following actions must take place with respect to the filing of anApplicationandanyDepartmentawardsforaTax‐ExemptBondDevelopment.

(A) Prior to submission of anApplication to theDepartment, anApplicantmust provide notice of theintenttofiletheApplicationinaccordancewith§10.203ofthischapter(relatingtoPublicNotifications(§2306.6705(9))).

(B)TheGoverningBodyofamunicipalitymustholdahearingiftheDevelopmentSiteislocatedwithinamunicipalityortheextraterritorialjurisdiction(ETJ)ofamunicipality.TheGoverningBodyofacountymustholdahearingunlesstheDevelopmentSiteislocatedwithinamunicipality.ForDevelopmentSiteslocatedinanETJthecountyandmunicipalitymustholdhearings;however,thecountyandmunicipalitymayarrangeforajointhearing.Thepurposeofthehearing(s)mustbetosolicitpublicinputconcerningtheApplicationorDevelopmentand thehearing(s)mustprovide thepublicwith suchanopportunity.The Applicantmay be asked to substantively address the concerns of the public or local governmentofficials.

(C) An Applicant must submit to the Department a resolution of no objection from the applicableGoverning Body. Such resolution(s) must specifically identify the Development whether by legaldescription,address,Developmentname,Applicationnumberorotherverifiablemethod.Inprovidingaresolution, amunicipalityor county should consult its own staff and legal counsel as towhether suchresolution will be consistent with Fair Housing laws as they may apply, including, as applicable,consistencywithanyFHASTformonfile,anycurrentAnalysisofImpedimentstoFairHousingChoice,oranycurrentplanssuchasoneyearactionplansorfiveyearconsolidatedplansforHUDblockgrantfunds,suchasHOMEorCDBGfunds.ForanApplicationwithaDevelopmentSitethatis:

(i)Withinamunicipality, theApplicantmust submita resolution fromtheGoverningBodyof thatmunicipality;(ii)Withintheextraterritorialjurisdiction(ETJ)ofamunicipality,theApplicantmustsubmitboth:

(I)aresolutionfromtheGoverningBodyofthatmunicipality;and(II)aresolutionfromtheGoverningBodyofthecounty;or

(iii)WithinacountyandnotwithinamunicipalityortheETJofamunicipality,aresolutionfromtheGoverningBodyofthecounty.

(D)Forpurposesofmeetingtherequirementsofsubparagraph(C)ofthisparagraph,theresolution(s)mustbesubmittednolaterthantheResolutionsDeliveryDatedescribedin§10.4ofthischapter(relatingtoProgramDates).Anacceptable,butnotrequired,formofresolutionmaybeobtainedintheMultifamilyPrograms Procedures Manual. Applicants should ensure that the resolutions all have the appropriatereferencesandcertificationsortheApplicationmaybeterminated.Theresolution(s)mustcertifythat:

(i) Notice has been provided to the Governing Body in accordancewith Texas Government Code,§2306.67071(a)andsubparagraph(A)ofthisparagraph;(ii) The Governing Body has had sufficient opportunity to obtain a response from the ApplicantregardinganyquestionsorconcernsabouttheproposedDevelopment;(iii)TheGoverningBodyhasheldahearingatwhichpubliccommentmaybemadeontheproposedDevelopmentinaccordancewithTexasGovernmentCode,§2306.67071(b)andsubparagraph(B)ofthisparagraph;and


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(iv)Afterdueconsiderationof the informationprovidedbytheApplicantandpubliccomment, theGoverningBodydoesnotobjecttotheproposedApplication.

(5)DesignationasRuralorUrban.

(A)EachApplicationmust identifywhether theDevelopmentSite is located inanUrbanAreaorRuralAreaofaUniformStateServiceRegion.TheDepartmentshallmakeavailablealistofPlacesmeetingtherequirementsofTexasGovernmentCode,§2306.004(28‐a)(A)and(B), fordesignationasaRuralAreaand those that are an Urban Area in the Site Demographics Characteristics Report. Some Places aremunicipalities. For any Development Site located in the ETJ of amunicipality and not in a Place, theApplicationshallhave theRuralAreaorUrbanAreadesignationof themunicipalitywhoseETJwithinwhichtheDevelopmentSiteislocated.ForanyDevelopmentSitenotlocatedwithintheboundariesofaPlaceortheETJofamunicipality,theapplicabledesignationisthatoftheclosestPlace.

(B) Certain areas located within the boundaries of a primary metropolitan statistical area or ametropolitan statistical area can request a Rural designation from the Department for purposes ofreceivinganallocationHousingTaxCredits(2306.6740).Inordertoapplyforsuchadesignation,alettermustbesubmittedfromadulyauthorizedofficialofthepoliticalsubdivisionorcensusdesignatedplaceaddressing the factors outlined in clauses (i) – (vi) of this subparagraph. Photographs and othersupportingdocumentationarestronglyencouraged.InorderfortheareatobedesignatedRuralbytheDepartment for the2016ApplicationRound, such requestsmustbemadeno later thanDecember15,2015.Ifstaffisabletoaffirmthefindingsoutlinedintherequest,theRuraldesignationwillbegrantedwithoutfurtheractionandwillremainineffectuntilsuchtimethatthepopulationasdescribedinclause(i) of this subparagraph exceeds 25,000. In the event that staff is unable to affirm the informationcontainedintherequest,arecommendationfordenialwillbepresentedtotheBoard.

(i)Thepopulationofthepoliticalsubdivisionorcensusdesignatedplacedoesnotexceed25,000;

(ii)Thecharacteristicsof thepoliticalsubdivisionorcensusdesignatedplaceandhowthosedifferfromthecharacteristicsofthearea(s)withwhichitsharesacontiguousboundary;

(iii)Thepercentageofthetotalborderofthepoliticalsubdivisionorcensusdesignatedplacethatiscontiguouswith other political subdivisions or census designated places designated as urban. Forpurposes of this assessment, less than fifty percent contiguity with urban designated places ispresumptivelyruralinnature;

(iv) The political subdivision or census designated place contains a significant number ofunimprovedroadsorreliesonunimprovedroadstoconnectittootherplaces;

(v)Thepoliticalsubdivisionorcensusdesignatedplacelacksmajoramenitiescommonlyassociatedwithurbanorsuburbanareas;and

(vi) The boundaries of the political subdivision or census designated place contain, or aresurrounded by, significant areas of undeveloped or agricultural land. For purposes of thisassessment, significant being more than one‐third of the total surface area of politicalsubdivision/census designated place, or aminimumof 1,000 acres immediately contiguous to theborder.

(6) Experience Requirement. Evidence that meets the criteria as stated in subparagraph (A) of thisparagraph must be provided in the Application, unless an experience certificate was issued by theDepartmentin2014or2015whichmaybesubmittedasacceptableevidenceofthisrequirement.Experienceofmultiplepartiesmaynotbeaggregatedtomeetthisrequirement.


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(A)APrincipaloftheDeveloper,DevelopmentOwner,orGeneralPartnermustestablishthattheyhaveexperienceinthedevelopmentandplacementinserviceof150unitsormore.Acceptabledocumentationtomeetthisrequirementshallincludeanyoftheitemsinclauses(i)‐(ix)ofthissubparagraph:

(i) American Institute of Architects (AIA) Document (A102) or (A103) 2007 ‐ Standard Form ofAgreementbetweenOwnerandContractor;(ii)AIADocumentG704‐‐CertificateofSubstantialCompletion;(iii)AIADocumentG702‐‐ApplicationandCertificateforPayment;(iv)CertificateofOccupancy;(v)IRSForm8609,(onlyoneperdevelopmentisrequired);(vi)HUDForm9822;(vii)Developmentagreements;(viii)Partnershipagreements;or(ix) other documentation satisfactory to the Department verifying that a Principal of theDevelopmentOwner,GeneralPartner,,orDeveloperhastherequiredexperience.

(B)Thenamesontheformsandagreementsinsubparagraph(A)(i)‐(ix)ofthisparagraphmustreflectthat the individual seeking to provide experience is a Principal of the Development Owner, GeneralPartner, or Developer as listed in the Application. For purposes of this requirement any individualattemptingtousetheexperienceofanotherindividualorentitymustdemonstratetheyhadtheauthoritytoactontheirbehalfthatsubstantiatestheminimum150unitrequirement.(C)ExperiencemaynotbeestablishedforaPersonwhoatanytimewithintheprecedingthreeyearshasbeen involvedwith affordable housing in another state inwhich the Person or Affiliate has been thesubjectofissuedIRSForm8823citingnon‐compliancethathasnotbeenorisnotbeingcorrectedwithreasonableduediligence.(D) If aPrincipal isdeterminedby theDepartment tonothave the requiredexperience,anacceptablereplacementforthatPrincipalmustbeidentifiedpriortothedatetheawardismadebytheBoard.(E)Notwithstandingtheforegoing,nopersonmaybeusedtoestablishsuchrequiredexperienceifthatPersonoranAffiliateofthatPersonwouldnotbeeligibletobeanApplicantthemselves.

(7)FinancingRequirements.

(A)Non‐DepartmentDebtFinancing. Interimandpermanent financing sufficient to fund theproposedTotalHousingDevelopmentCostlessanyotherfundsrequestedfromtheDepartmentmustbeincludedintheApplication.ForanyDevelopmentthatisapartofalargerdevelopmentplanonthesamesite,theDepartmentmayrequestandevaluateinformationrelatedtotheothercomponentsofthedevelopmentplan in instances inwhich the financial viability of theDevelopment is inwhole or in part dependentupontheotherportionsofthedevelopmentplan.Any local,stateor federal financing identified inthissectionwhichrestrictshouseholdincomesatanylevelthatislowerthanrestrictionsrequiredpursuantto this chapter or elected in accordancewith Chapter 11 of this title (relating to Housing Tax CreditProgramQualifiedAllocationPlan)mustbeidentifiedintherentscheduleandthelocal,stateorfederalincomerestrictionsmust includecorrespondingrent levels inaccordancewith§42(g)of theCode.TheincomeandcorrespondingrentrestrictionswillbeimposedbytheLURAandmonitoredforcompliance.Financingamountsmustbeconsistent throughout theApplicationandacceptabledocumentationshallincludethosedescribedinclauses(i)and(ii)ofthissubparagraph.


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(i)Financingisinplaceasevidencedby:(I)avalidandbindingloanagreement;and(II)avalidrecordeddeed(s)oftrustlienontheDevelopmentinthenameoftheDevelopmentOwnerasgrantorcoveredbyalender'spolicyoftitleinsurance;

(ii)Termsheetsfor interimandpermanent loansissuedbya lendinginstitutionormortgagecompanythatisactivelyandregularlyengagedinthebusinessoflendingmoneymust:

(I)havebeensignedbythelender;(II)beaddressedtotheDevelopmentOwnerorAffiliate;(III)forthepermanentloan,includeaminimumloantermoffifteen(15)yearswithatleastathirty(30)yearamortization;(IV)includeanticipatedinterestrate,includingthemechanismfordeterminingtheinterestrate;(V)includeanyrequiredGuarantors,ifknown;(VI)includetheprincipalamountoftheloan;and(VII)includeandaddressanyothertermsandconditionsapplicabletothefinancing.Thetermsheetmaybeconditionaluponthecompletionofspecifiedduediligencebythelenderandupontheawardoftaxcredits,ifapplicable;or

(iii)ForDevelopmentsproposingtorefinanceanexistingUSDASection515loan,aletterfromtheUSDAconfirmingreceiptoftheloantransferapplication.

(B)GapFinancing.Anyanticipatedfederal,state,localorprivategapfinancing,whethersoftorharddebt,mustbeidentifiedintheApplication.Applicantsmustprovideevidencethatanapplicationforsuchgapfinancing has been made. Acceptable documentation may include a letter from the funding entityconfirmingreceiptofanapplicationoratermsheetfromthelendingagencywhichclearlydescribestheamount and terms of the financing. Other Department funding requested with Housing Tax CreditApplicationsmustbeona concurrent fundingperiodwith theHousingTaxCreditApplication, andnotermsheetisrequiredforsucharequest.Permanentloansmustincludeaminimumloantermoffifteen(15)yearswithat leastathirty(30)yearamortizationorfornon‐amortizingloanstructuresatermofnotlessthanthirty(30)years.

(C)Owner Contributions. If theDevelopmentwill be financed in part by a capital contribution by theGeneral Partner, Managing General Partner, any other partner that is not a partner providing thesyndicationequity,aguarantororaPrincipalinanamountthatexceeds5percentoftheTotalHousingDevelopmentCost, a letter fromaThirdPartyCPAmustbe submitted thatverifies the capacityof thecontributortoprovidethecapitalfromfundsthatarenototherwisecommittedorpledged.Additionally,aletterfromthecontributor'sbank(s)orrepository(ies)mustbesubmittedconfirmingsufficientfundsare readily available to the contributor. The contributor must certify that the funds remain readilyavailable at Commitment. Regardless of the amount, all capital contributions other than syndicationequitywillbeaddedto theDeferredDeveloperFeefor feasibilitypurposesunder§10.302(i)(2)of thischapter (relating to Underwriting Rules and Guidelines) or where scoring is concerned, unless theDevelopmentisaSupportiveHousingDevelopment,theDevelopmentisnotsupportedwithHousingTaxCredits, or the ownership structure includes a nonprofit organizationwith a history of fundraising tosupportthedevelopmentofaffordablehousing.

(D)EquityFinancing.(§2306.6705(2)and(3))Ifapplicabletotheprogram,theApplicationmustincludeatermsheetfromasyndicatorthat,ataminimum,includes:

(i)anestimateoftheamountofequitydollarsexpectedtoberaisedfortheDevelopment;(ii)theamountofHousingTaxCreditsrequestedforallocationtotheDevelopmentOwner;(iii)pay‐inschedules;


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(iv)anticipateddeveloperfeespaidduringconstruction;and(v)syndicatorconsultingfeesandothersyndicationcosts.NosyndicationcostsshouldbeincludedintheEligibleBasis.

(E) Financing Narrative. (§2306.6705(1)) A narrativemust be submitted that describes the completefinancing plan for the Development, including but not limited to, the sources and uses of funds;construction,permanentandbridgeloans,rents,operatingsubsidies,andreplacementreserves;andthestatus of commitments for all funding sources. For applicants requesting HOME funds, Match in theamountofat least5percentof theHOMEfundsrequestedmustbedocumentedwitha letter fromtheanticipated provider of Match indicating the provider's willingness and ability to make a financialcommitmentshouldtheDevelopmentreceiveanawardofHOMEfunds.TheinformationprovidedmustbeconsistentwithallotherdocumentationintheApplication.

(8)OperatingandDevelopmentCostDocumentation.

(A)15‐yearProforma.AllApplicationsmustincludea15‐yearproformaestimateofoperatingexpenses,intheformprovidedbytheDepartment.Any"other"debtserviceincludedintheproformamustincludeadescription.

(B) Utility Allowances. This exhibit, as provided in the Application, must be submitted along withdocumentation fromthesourceof theutilityallowanceestimateused incompleting theRentScheduleprovided in the Application. This exhibit must clearly indicate which utility costs are included in theestimate and must comply with the requirements of §10.614 of this chapter (relating to UtilityAllowances).WheretheApplicantusesanymethodthatrequiresDepartmentreview,suchreviewmusthavebeenrequestedpriortosubmissionoftheApplication.

(C)OperatingExpenses.This exhibit, asprovided in theApplication,mustbe submitted indicating theanticipatedoperatingexpensesassociatedwiththeDevelopment.Anyexpensesnotedas"other"inanyofthecategoriesmustbeidentified."Miscellaneous"orothernondescriptdesignationsarenotacceptable.

(D)RentSchedule.Thisexhibit,asprovidedintheApplication,mustindicatethetypeofUnitdesignationbased on the Unit's rent and income restrictions. The rent and utility limits available at the time theApplicationissubmittedshouldbeusedtocompletethisexhibit.Grossrentscannotexceedthemaximumrent limits unless documentation of project‐based rental assistance is provided. The unitmix and netrentable square footagesmust be consistent with the site plan and architectural drawings. For Unitsrestricted in connectionwith Direct Loans, the restricted Unitswill generally be designated "floating"unless specificallydisallowedunder theprogramspecific rules. ForApplications thatproposeutilizingHOMEfunds,at least90percentoftheUnitsrestrictedinconnectionwiththeHOMEprogrammustbeavailabletofamilieswhoseincomesdonotexceed60percentoftheAreaMedianIncome.

(E)DevelopmentCosts.Thisexhibit,asprovidedintheApplication,mustincludethecontactinformationforthepersonprovidingthecostestimateandmustmeettherequirementsofclauses(i)and(ii)ofthissubparagraph.

(i)ApplicantsmustprovideadetailedcostbreakdownofprojectedSiteWorkcosts(excludingsiteamenities),ifany,preparedbyaThirdPartyengineerorcostestimator.IfSiteWorkcosts(excludingsiteamenities)exceed$15,000perUnitandareincludedinEligibleBasis,alettermustbeprovidedfromacertifiedpublicaccountantallocatingwhichportionsofthosesitecostsshouldbeincludedinEligibleBasis.

(ii)IfcostsforOff‐SiteConstructionareincludedinthebudgetasalineitem,orembeddedinthesiteacquisitioncontract,or referenced in theutilityprovider letters, then theOff‐SiteCostBreakdown


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preparedbyaThirdPartyengineermustbeprovided.ThecertificationfromaThirdPartyengineermustdescribethenecessityoftheoff‐siteimprovements,includingtherelevantrequirementsofthelocaljurisdictionwithauthorityoverbuildingcodes.IfanyOff‐SiteConstructioncostsareincludedinEligibleBasis,alettermustbeprovidedfromacertifiedpublicaccountantallocatingwhichportionsofthosecostsshouldbeincludedinEligibleBasis.Ifoff‐sitecostsareincludedinEligibleBasisbasedonPLR200916007,astatementoffindingsfromaCPAmustbeprovidedwhichdescribesthefactsrelevant to the Development and affirmatively certifies that the fact pattern of the DevelopmentmatchesthefactpatterninPLR200916007.

(F)RentalAssistance/Subsidy.(§2306.6705(4))Ifrentalassistance,anoperatingsubsidy,anannuity,oran interest rate reduction payment is proposed to exist or continue for theDevelopment, any relatedcontract or other agreement securing those funds or proof of application for such funds must beprovided.Suchdocumentationshall,ataminimum,identifythesourceandannualamountofthefunds,the number of units receiving the funds, and the term and expiration date of the contract or otheragreement.

(G) Occupied Developments. The items identified in clauses (i) ‐ (vi) of this subparagraph must besubmittedwith anyApplicationwhere any structure on theDevelopment Site is occupied at any timeafter the Application Acceptance Period begins or if the Application proposes the demolition of anyhousing occupied at any time after the Application Acceptance Period begins. If the current propertyowner isunwilling toprovide therequireddocumentation thenasignedstatement fromtheApplicantattestingtothatfactmustbesubmitted.Ifoneormoreoftheitemsdescribedinclauses(i)‐(vi)ofthissubparagraphisnotapplicablebaseduponthetypeofoccupiedstructuresontheDevelopmentSite,theApplicantmustprovideanexplanationofsuchnon‐applicability.Applicantmustsubmit:

(i)atleastoneoftheitemsidentifiedinsubclauses(I)‐(IV)ofthisclause:

(I) historicalmonthly operating statements of the ExistingResidential Development for twelve(12) consecutive months ending not more than three (3) months from the first day of theApplicationAcceptancePeriod;(II)thetwo(2)mostrecentconsecutiveannualoperatingstatementsummaries;(III) themost recent consecutive six (6) months of operating statements and themost recentavailableannualoperatingsummary;or(IV)allmonthlyorannualoperatingsummariesavailable;and

(ii)arentrollnotmorethansix(6)monthsoldasofthefirstdaytheApplicationAcceptancePeriodthatdisclosesthetermsandrateofthelease,rentalratesofferedatthedateoftherentroll,Unitmix,andtenantnamesorvacancy;(iii)awrittenexplanationoftheprocessusedtonotifyandconsultwiththetenantsinpreparingtheApplication;(§2306.6705(6))(iv) a relocation plan outlining relocation requirements and a budget with an identified fundingsource;(§2306.6705(6))(v)anydocumentationnecessaryfortheDepartmenttofacilitate,oradviseanApplicantwithrespectto or to ensure compliance with the Uniform Relocation Act and any other relocation laws orregulationsasmaybeapplicable;and(vi) if applicable, evidence that the relocationplanhasbeen submitted to theappropriate legalorgovernmentalagency.(§2306.6705(6))

(9)ArchitecturalDrawings.AllApplicationsmustincludetheitemsidentifiedinsubparagraphs(A)‐(D)ofthis paragraph, unless specifically stated otherwise, and must be consistent with all applicable exhibitsthroughout the Application. The drawings must have a legible scale and show the dimensions of eachperimeterwallandfloorheights.


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(A)Asiteplanwhich:

(i) includes a unit and building type table matrix that is consistent with the Rent Schedule andBuilding/UnitConfigurationformsprovidedintheApplication;(ii)identifiesallresidentialandcommonbuildings;(iii)clearlydelineatesthefloodplainboundarylinesandshowsalleasements;(iv)ifapplicable,indicatespossibleplacementofdetention/retentionpond(s);and(v)indicatesthelocationoftheparkingspaces;

(B) Building floor plans must be submitted for each building type. Applications for Rehabilitation(excludingReconstruction)arenotrequiredtosubmitbuildingfloorplansunlessthefloorplanchanges.Applications for Adaptive Reuse are only required to include building plans delineating each Unit bynumber and type. Building floor plans must include square footage calculations for balconies,breezeways,corridorsandanyotherareasnotincludedinnetrentablearea;

(C)UnitfloorplansforeachtypeofUnitmustbeincludedintheApplicationandmustincludethesquarefootage for each type of Unit. Applications for Adaptive Reuse are only required to include Unit floorplans foreachdistinct typicalUnit typesuchasone‐bedroom, two‐bedroomand forallUnit types thatvaryinNetRentableAreaby10percentfromthetypicalUnit;and

(D)Elevationsmustbesubmittedforeachsideofeachbuildingtype(orincludeastatementthatallothersides are of similar composition as the front) and include a percentage estimate of the exteriorcomposition and proposed roof pitch. Applications for Rehabilitation andAdaptive Reusemay submitphotographs if the Unit configurations are not being altered and post‐renovation drawings must besubmittedifUnitconfigurationsareproposedtobealtered.

(10)SiteControl.

(A)EvidencethattheDevelopmentOwnerhasSiteControlmustbesubmitted.IftheevidenceisnotinthenameoftheDevelopmentOwner,thenanAffiliateoftheDevelopmentOwnermusthaveSiteControlthat does not expressly preclude an ability to assign the Site Control to the Development Owner oranotherparty.AllofthesellersoftheproposedPropertyforthethirty‐six(36)monthspriortothefirstdayoftheApplicationAcceptancePeriodandtheirrelationship,ifany,tomembersoftheDevelopmentTeammustbeidentifiedatthetimeofApplication.TheDepartmentmayrequestdocumentationatanytime after submission of an Application of the Development Owner's ability to compel title and theDevelopmentOwnermustbeabletopromptlyprovidesuchdocumentationortheApplication,award,orCommitmentmaybeterminated.TheDepartmentacknowledgesandunderstandsthatthePropertymayhaveoneormoreencumbrancesat the timeofApplication submissionand theDepartmentwilluseareasonableness standard indeterminingwhether suchencumbrance is likely to impedeanApplicant'sability to meet the program's requirements. Tax‐Exempt Bond Lottery Applications must have SiteControlvalidthroughDecember1ofthepriorprogramyearwiththeoptiontoextendthroughMarch1ofthecurrentprogramyear.

(B)InordertoestablishSiteControl,oneoftheitemsdescribedinclauses(i)‐(iii)ofthissubparagraphmustbeprovided. In thecaseof landdonations,Applicantsmustdemonstrate that theentitydonatingthe land has Site Control as evidenced through one of the items described in clauses (i) – (iii) of thissubparagraphorotherdocumentationacceptabletotheDepartment.

(i) a recorded warranty deed with corresponding executed settlement statement (or functionalequivalentforanexistingleasewithatleastforty‐five(45)yearsremaining);or


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(ii)acontractoroptionforleasewithaminimumtermofforty‐five(45)yearsthatincludesaprice;addressand/or legaldescription;proofof consideration in the formspecified in the contract; andexpirationdate;or(iii) a contract for sale or an option to purchase that includes a price; address and/or legaldescription;proofofconsiderationintheformspecifiedinthecontract;andexpirationdate;

(C)Iftheacquisitioncanbecharacterizedasanidentityofinteresttransaction,asdescribedin§10.302ofthischapter,thenthedocumentationasfurtherdescribedthereinmustbesubmittedinadditiontothatofsubparagraph(B)ofthisparagraph.

(11) Zoning. (§2306.6705(5)) Acceptable evidence of zoning for all Developments must include one ofsubparagraphs(A)‐(D)ofthisparagraph.IninstanceswhereannexationofaDevelopmentSiteoccurswhilethe Application is under review, the Applicant must submit evidence of appropriate zoning with theCommitmentorDeterminationNotice.

(A)NoZoningOrdinanceinEffect.TheApplicationmustincludealetterfromalocalgovernmentofficialwithappropriatejurisdictionstatingthattheDevelopmentislocatedwithintheboundariesofapoliticalsubdivisionthathasnozoning.

(B) ZoningOrdinance in Effect. TheApplicationmust include a letter froma local government officialwithappropriate jurisdiction stating theDevelopment ispermittedunder theprovisionsof the zoningordinancethatappliestothelocationoftheDevelopment.

(C)Requesting aZoningChange.TheApplicationmust include evidence in the formof a letter fromalocal government officialwith jurisdiction over zoningmatters that the Applicant or Affiliate is in theprocessofseekingazoningchange, thatazoningapplicationwasreceivedbythepoliticalsubdivision,andthatthejurisdictionreceivedareleaseagreeingtoholdthepoliticalsubdivisionandallotherpartiesharmlessintheeventtheappropriatezoningisdenied.DocumentationoffinalapprovalofappropriatezoningmustbesubmittedtotheDepartmentwiththeCommitmentorDeterminationNotice.

(D) Zoning for Rehabilitation Developments. The Application must include documentation of currentzoning.IfthePropertyiscurrentlyconformingbutwithanoverlaythatwouldmakeitanon‐conforminguse as presently zoned, the Application must include a letter from a local government official withappropriatejurisdictionwhichaddressestheitemsinclauses(i)‐(iv)ofthissubparagraph:

(i)adetailednarrativeofthenatureofnon‐conformance;(ii)theapplicabledestructionthreshold;(iii)Owner'srightstoreconstructintheeventofdamage;and(iv)penaltiesfornoncompliance.

(12)TitleCommitment/Policy.Atitlecommitmentortitlepolicymustbesubmittedthat includesa legaldescriptionthatisconsistentwiththeSiteControl.Ifthetitlecommitmentorpolicyisdatedmorethansix(6)months prior to the beginning of the Application Acceptance Period, then a letter from the title companyindicatingthatnothingfurtherhastranspiredduringthesix‐monthperiodonthecommitmentorpolicymustbesubmitted.

(A)ThetitlecommitmentmustlistthenameoftheDevelopmentOwnerastheproposedinsuredandliststhesellerorlessorasthecurrentowneroftheDevelopmentSite.(B)Thetitlepolicymustshowthattheownership(orleasehold)oftheDevelopmentSiteisvestedinthenameoftheDevelopmentOwner.


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(13)OwnershipStructure.

(A)OrganizationalCharts.Achartmustbesubmittedthatclearlyillustratesthecompleteorganizationalstructureof the finalproposedDevelopmentOwnerandofanyDeveloperorGuarantor, identifyingallPrincipals thereof and providing the names and ownership percentages of all Persons having anownership interest in the Development Owner or the Developer or Guarantor, as applicable, whetherdirectly or through one or more subsidiaries. Nonprofit entities, public housing authorities, publiclytradedcorporations,individualboardmembers,andexecutivedirectorsmustbeincludedinthisexhibitandtrustsmustlistallbeneficiariesthathavethelegalabilitytocontrolordirectactivitiesofthetrustandarenotjustfinancialbeneficiaries.

(B) Previous Participation. Evidencemust be submitted that each entity shown on the organizationalchartdescribed insubparagraph(A)ofthisparagraphthathasownership interest intheDevelopmentOwner, Developer or Guarantor, has provided a copy of the completed and executed PreviousParticipationandBackgroundCertificationFormtotheDepartment.IndividualPrincipalsofsuchentitiesidentified on the organizational chart must provide the Previous Participation and BackgroundCertificationForm,unlessexcluded fromsuchrequirementpursuant toChapter1SubchapterC§1.5ofthis title. . AnyPerson (regardlessof anyOwnership interest or lack thereof) receivingmore than10percentoftheDeveloperfFeeisalsorequiredtosubmitthisdocument.Theformmustincludealistofalldevelopments that are, orwere, previously under ownership or Control of the Applicant and/or eachPrincipal, includinganyPersonproviding the requiredexperience.Allparticipation inanyDepartmentfunded or monitored activity, including non‐housing activities, as well as Housing Tax Creditdevelopmentsorotherprogramsadministeredbyotherstatesusingstateorfederalprogramsmustbedisclosed. The Previous Participation and Background Certification Form will authorize the partiesoverseeingsuchassistancetoreleasecompliancehistoriestotheDepartment.

(14) Nonprofit Ownership. Applications that involve a §501(c)(3) or (4) nonprofit General Partner orOwnershallsubmitthedocumentationidentifiedinsubparagraph(A)or(B)ofthisparagraphasapplicable,andsubparagraph(C)ofthisparagraph.

(A) Competitive HTC Applications. Applications for Competitive Housing Tax Credits involving a§501(c)(3)or(4)nonprofitGeneralPartnerandwhichmeettheNonprofitSet‐Asiderequirements,mustsubmit all of the documents described in this subparagraph and indicate the nonprofit status on thecarryover documentation and IRS Forms 8609. (§2306.6706) Applications that include an affirmativeelection to not be treated under the set‐aside and a certification that they do not expect to receive abenefitintheallocationoftaxcreditsasaresultofbeingaffiliatedwithanonprofitonlyneedtosubmitthedocumentationinsubparagraph(B)ofthisparagraph.

(i)AnIRSdetermination letterwhichstatesthatthenonprofitorganization isa§501(c)(3)or(4)entity;(ii)TheNonprofitParticipationexhibitasprovidedintheApplication,includingalistofthenamesandcontactinformationforallboardmembers,directors,andofficers;(iii)AThirdPartylegalopinionstating:

(I) that the nonprofit organization is not affiliated with or Controlled by a for‐profitorganizationandthebasisforthatopinion;(II) that the nonprofit organization is eligible, as further described, for a Housing CreditAllocationfromtheNonprofitSet‐Asidepursuantto§42(h)(5)oftheCodeandthebasisforthatopinion;(III) that oneof the exemptpurposesof thenonprofit organization is to provide low‐incomehousing;


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(IV)thatthenonprofitorganizationprohibitsamemberofitsboardofdirectors,otherthanachief staff member serving concurrently as a member of the board, from receivingmaterialcompensationforserviceontheboard;(V) that the Qualified Nonprofit Development will have the nonprofit entity or its nonprofitAffiliate or subsidiary be the Developer or co‐Developer as evidenced in the developmentagreement;

(iv)acopyofthenonprofitorganization'smostrecentfinancialstatementaspreparedbyaCertifiedPublicAccountant;and(v) evidence in the form of a certification that a majority of the members of the nonprofitorganization'sboardofdirectorsprincipallyreside:

(I)inthisstate,iftheDevelopmentislocatedinaRuralArea;or(II)notmorethanninety(90)milesfromtheDevelopment,iftheDevelopmentisnotlocatedinaRuralArea.

(B) All Other Applications. Applications that involve a §501(c)(3) or (4) nonprofit General Partner orOwner must submit an IRS determination letter which states that the nonprofit organization is a§501(c)(3) or (4) entity and the Nonprofit Participation exhibit as provided in the Application. If theApplicationinvolvesanonprofitthatisnota§501(c)(3)or(4),thentheymustdiscloseintheApplicationthebasisoftheirnonprofitstatus.

(C) For all Applications. AnyApplicant proposing aDevelopmentwith a property tax exemptionmust.includeanattorneystatementanddocumentationsupportingtheamount,basisforqualification,andthereasonablenessofachievingtheexemptionunderthePropertyTaxCode.AproposedPaymentinLieuofTax(“PILOT”)agreementmustbedocumentedasbeingreasonablyachievable.

§10.205. Required Third Party Reports. The Environmental Site Assessment, Property ConditionAssessment, Appraisal (if applicable), Market Analysis, and the Site Design and Development FeasibilityReportmustbesubmittedno later than theThirdPartyReportDeliveryDateas identified in§10.4of thischapter(relatingtoProgramDates).ForCompetitiveHTCApplications,theEnvironmentalSiteAssessment,PropertyConditionAssessment,Appraisal(ifapplicable),theSiteDesignandDevelopmentFeasibilityReport,and the PrimaryMarket Areamap (with definition based on census tracts, zip codes or census place inelectronicformat)mustbesubmittednolaterthantheFullApplicationDeliveryDateasidentifiedin§11.2ofthistitle(relatingtoProgramCalendarforCompetitiveHousingTaxCredits)andtheMarketAnalysismustbesubmittednolaterthantheMarketAnalysisDeliveryDateasidentifiedin§11.2ofthistitle.ForCompetitiveHTCApplications, if the reports, in their entirety, arenot receivedby thedeadline, theApplicationwillbeterminated. An electronic copy of the report in the format of a single file containing all information andexhibitsclearlylabeledwiththereporttype,DevelopmentnameandDevelopmentlocationarerequired.AllThird Party reports must be prepared in accordance with Subchapter D of this chapter (relating toUnderwriting and Loan Policy). The Department may request additional information from the reportprovider or revisions to the report as needed. In instances of non‐response by the report provider, theDepartmentmaysubstitutein‐houseanalysis.TheDepartmentisnotboundbyanyopinionsexpressedinthereport.

(1)EnvironmentalSiteAssessment.Thisreport,requiredforallDevelopmentsandpreparedinaccordancewith the requirements of §10.305 of this chapter (relating to Environmental Site Assessment Rules andGuidelines), must not be dated more than twelve (12) months prior to the first day of the ApplicationAcceptancePeriod. If this timeframe isexceeded, thena letterorupdatedreportmustbesubmitted,datednotmorethanthree(3)monthspriortothefirstdayoftheApplicationAcceptancePeriodfromthePersonororganization which prepared the initial assessment confirming that the site has been re‐inspected andreaffirmingtheconclusionsoftheinitialreportoridentifyingthechangessincetheinitialreport.


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(A)Developments funded byUSDAwill not be required to supply this information; however, it is theApplicant'sresponsibilitytoensurethattheDevelopmentismaintainedincompliancewithallstateandfederalenvironmentalhazardrequirements.

(B) If the report includes a recommendation that an additional assessment be performed, then astatement from the Applicant must be submitted with the Application indicating those additionalassessmentsandrecommendationswillbeperformedpriortoclosing.Iftheassessmentsrequirefurthermitigating recommendations, then evidence indicating the mitigating recommendations have beencarriedoutmustbesubmittedatcostcertification.

(2)MarketAnalysis.TheMarketAnalysis,requiredforallDevelopmentsandpreparedinaccordancewiththerequirementsof§10.303ofthischapter(relatingtoMarketAnalysisRulesandGuidelines),mustnotbedatedmorethansix(6)monthsprior to the firstdayof theApplicationAcceptancePeriod. If thereport isolder than six (6)months, but notmore than twelve (12)monthsprior to the firstdayof theApplicationAcceptance Period, the Qualified Market Analyst that prepared the report may provide a statement thatreaffirms the findings of the originalMarket Analysis. The statementmay not be datedmore than six (6)monthspriortothefirstdayoftheApplicationAcceptancePeriodandmustbeaccompaniedbytheoriginalMarketAnalysis.

(A) The report must be prepared by a Qualified Market Analyst approved by the Department inaccordancewiththeapprovalprocessoutlinedin§10.303ofthischapter;

(B)ApplicationsintheUSDASet‐AsideproposingRehabilitationwithresidentialstructuresatorabove80percentoccupancy at the timeofApplication submission, the appraisal, required forRehabilitationDevelopmentsandIdentityofInteresttransactionspreparedinaccordancewith§10.304ofthischapter(relatingtoAppraisalRulesandGuidelines),willsatisfytherequirementforaMarketAnalysis;however,theDepartmentmayrequestadditionalinformationasneeded.(§2306.67055;§42(m)(1)(A)(iii))

(C) It is the responsibility of theApplicant to ensure that this analysis formsa sufficient basis for theApplicanttobeabletousetheinformationobtainedtoensurethattheDevelopmentwillcomplywithfairhousinglaws.

(3) Property Condition Assessment (PCA). This report, required for Rehabilitation (excludingReconstruction) and Adaptive Reuse Developments and prepared in accordancewith the requirements of§10.306ofthischapter(relatingtoPropertyConditionAssessmentGuidelines),mustnotbedatedmorethansix(6)monthspriortothefirstdayoftheApplicationAcceptancePeriod.Ifthereportisolderthansix(6)months,butnotmorethantwelve(12)monthspriortothefirstdayoftheApplicationAcceptancePeriod,thereportprovidermayprovideastatementthatreaffirmsthefindingsoftheoriginalPCA.Thestatementmaynotbedatedmorethansix(6)monthspriortothefirstdayoftheApplicationAcceptancePeriodandmustbeaccompaniedbytheoriginalPCA.ForDevelopmentswhichrequireacapitalneedsassessmentfromUSDAthecapitalneedsassessmentmaybesubstitutedandmaybemorethansix(6)monthsold,aslongasUSDAhasconfirmed in writing that the existing capital needs assessment is still acceptable and it meets therequirementsof§10.306of thischapter. AllRehabilitationDevelopments financedwithDirectLoansmustalsosubmitacapitalneedsassessmentestimatingtheusefullifeofeachmajorsystem.Thisassessmentmustinclude a comparison between the local building code and the International Existing Building Code of theInternationalCodeCouncil.

(4)Appraisal.Thisreport,requiredforallRehabilitationDevelopmentsandpreparedinaccordancewiththerequirementsof§10.304ofthischapter,isrequiredforanyApplicationclaiminganyportionofthebuildingacquisition inEligibleBasis,and Identityof Interest transactionspursuant toSubchapterDof thischapter,mustnotbedatedmorethansix(6)monthspriortothefirstdayoftheApplicationAcceptancePeriod.ForDevelopmentsthatrequireanappraisal fromUSDA,theappraisalmaybemorethansix(6)monthsold,aslongasUSDAhasconfirmedinwritingthattheexistingappraisalisstillacceptable.


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(5)SiteDesignandDevelopmentFeasibilityReport.Thisreport,compiledbytheApplicantorThirdPartyConsultant,andpreparedinaccordancewiththisparagraph,whichreviewssiteconditionsanddevelopmentrequirements of the Development and Development Site, is required for any New Construction orReconstructionDevelopment.

(A)ExecutiveSummaryasanarrativeoverviewoftheDevelopmentinsufficientdetailthatwouldhelpareviewer of the Application better understand the site, the site plan, off site requirements (includingdiscussionofanysellercontributionsorreimbursements),anyotheruniquedevelopmentrequirements,and their impactonSiteWorkandOff SiteConstruction costs.The summary should containageneralstatementregardingthelevelofduediligencethathasbeendonerelatingtositedevelopment(includingdiscussions with local government development offices). Additionally, the overview should contain asummary of zoning requirements, subdivision requirements, property identification number(s) andmillage rates for all taxing jurisdictions, development ordinances, fire department requirements, siteingress and egress requirements, building codes, and local design requirements impacting theDevelopment(includewebsitelinksbutdonotattachcopiesofordinances).Carefulfocusandattentionshouldbemaderegardinganyatypicalitemsmateriallyimpactingcosts.

(B)SurveyorcurrentplatasdefinedbytheTexasSocietyofProfessionalSurveyors intheirManualofPractice forLandSurveying inTexas(Category1A‐LandTitleSurveyorCategory1B‐StandardLandBoundary Survey). Surveys may not be older than twelve (12) months from the beginning of theApplication Acceptance Period. Plats must include evidence that it has been recorded with theappropriate localentityand that,asof thedateof submission, it is themostcurrentplat.Applicationsproposing noncontiguous single family scattered sites are not required to submit surveys or plats atApplication,butthisinformationmayberequestedduringtheRealEstateAnalysisreview.

(C)Preliminarysiteplanpreparedbythecivilengineerwithastatementthattheplanmateriallyadherestoallapplicablezoning,sitedevelopment,andbuildingcodeordinances.Thesiteplanmust identifyallstructures, site amenities, parking spaces (include handicap spaces and ramps) and driveways,topography (using either existing seller topographic survey or U.S. Geological Survey (USGS)/otherdatabase topography), site drainage and detention, water and waste water utility tie‐ins, generalplacementofretainingwalls,set‐backrequirements,andanyothertypicalorlocallyrequireditems.Off‐site improvementsrequired forutilities,detention,accessorotherrequirementmustbeshownonthesiteplanorancillarydrawings.

(D) Architect or civil engineer prepared statement describing the entitlement, site developmentpermittingprocessandtiming,buildingpermittingprocessandtiming,andanitemizationspecifictotheDevelopmentof totalanticipated impact, sitedevelopmentpermit,buildingpermit,andotherrequiredfees.

§10.206. Board Decisions (§§2306.6725(c); 2306.6731; and 42(m)(1)(A)(iv)). The Board's decisionsregarding awards shall be based upon the Department's and the Board's evaluation of the proposedDevelopments' consistencywith, and fulfillment of, the criteria and requirements set forth in this chapter,Chapter 11 of this title (relating to Housing Tax Credit Program Qualified Allocation Plan) and otherapplicable Department rules. The Board shall document the reasons for each Application's selection,includinganydiscretionaryfactorsusedinmakingitsdetermination,includinggoodcause,andthereasonsforanydecisionthatconflictswiththerecommendationsmadebyDepartmentstaff.GoodcauseincludestheBoard's decision to apply discretionary factors where authorized. The Department reserves the right toreducetheamountoffundsrequestedinanApplication,conditiontheawardrecommendationorterminatetheApplicationbasedontheApplicant'sinabilitytodemonstratecompliancewithprogramrequirements.


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§10.207.WaiverofRulesforApplications.

(a)GeneralWaiverProcess.ThiswaiversectionisapplicableonlytoSubchapterBofthischapter(relatingto Site and Development Requirements and Restrictions), Subchapter C of this chapter (relating toApplication Submission Requirements, Ineligibility Criteria, Board Decisions, and Waiver of Rules forApplications), SubchapterEof thischapter (relating toPostAwardandAssetManagementRequirements),andSubchapterGofthischapter(relatingtoFeeSchedule,Appeals,andOtherProvisions),Chapter11ofthistitle(relatingtoHousingTaxCreditProgramQualifiedAllocationPlan),andChapter12ofthistitle(relatingtoMultifamilyHousingRevenueBondRules).AnApplicantmayrequestawaiverinwritingatorpriortothesubmission of the pre‐application (if applicable) or the Application or subsequent to an award. Waiverrequests will not be accepted between submission of the Application and any award for the Application.Whereappropriate,theApplicantisencouragedtosubmitwiththerequestedwaiveranyplansformitigationoralternativesolutions.Anysuchrequestforwaivermustbespecifictotheuniquefactsandcircumstancesofan actual proposedDevelopment andmust be submitted to theDepartment in the format required in theMultifamilyProgramsProceduresManual.Anywaiver, if granted, shall apply solely to theApplicationandshallnotconstituteageneralmodificationorwaiveroftheruleinvolved.WaiverrequeststhatarelimitedtoDevelopmentdesignandconstructionelementsnotspecificallyrequiredinTexasGovernmentCode,Chapter2306mustmeettherequirementsofparagraph(1)ofthissubsection.Allotherwaiverrequestsmustmeettherequirementsofparagraph(2)ofthissubsection.

(1)ThewaiverrequestmustestablishgoodcausefortheBoardtograntthewaiverwhichmayincludelimitations of local building or zoning codes, limitations of existing building structural elements forAdaptive Reuse or Rehabilitation (excluding Reconstruction) Developments, required amenities ordesign elements in buildings designated as historic structures that would conflict with retaining thehistoricnatureofthebuilding(s),orprovisionsofthedesignelementoramenitythatwouldnotbenefitthe tenants due to limitations of the existing layout or design of the units for Adaptive Reuse orRehabilitation(excludingReconstruction)Developments.StaffmayrecommendtheBoard’sapprovalforsuch a waiver if the Executive Director, the Deputy Executive Director with oversight of multifamilyprograms,andDeputyExecutiveDirectorwithoversightofassetmanagement finds that theApplicanthas established good cause for the waiver. A recommendation for a waiver may be subject to theApplicant’s provision of alternative design elements or amenities of a similar nature or that serve asimilar purpose. Waiver requests for items that were elected to meet scoring criteria or where theApplicantwasprovidedamenuof options tomeet the requirementwill notbe consideredunder thisparagraph.

(2) The waiver request must establish how it is necessary to address circumstances beyond theApplicant's control andhow, if thewaiver isnot granted, theDepartmentwill not fulfill some specificrequirement of law. In this regard, the policies and purposes articulated in Texas Government Code,§§2306.001, 2306.002, 2306.359, and 2306.6701, are general in nature and apply to the role of theDepartmentanditsprograms,includingtheHousingTaxCreditprogram.

(b)Waivers Granted by the Executive Director. The Executive Director may waive requirements asprovided in this rule. Even if this rule grants the Executive Director authority to waive a given item, theExecutiveDirectormaypresentthemattertotheBoardforconsiderationandaction.NeithertheExecutiveDirectornortheBoardshallgrantanywaivertotheextentsuchrequirementismandatedbystatute.Denialof a waiver by the Executive Director may be appealed to the Board in accordance with §10.902 of thischapter (relating to Appeals Process (§2306.0321; §2306.6715)). Applicants should expect that waiversgrantedbytheExecutiveDirectorwillgenerallybeverylimited.TheExecutiveDirector'sdecisiontodefertotheBoardwillnotautomaticallybedeemedanadversestaffpositionwithregard to thewaiverrequestaspublicvettingofsuchrequestsisgenerallyappropriateandpreferred.However,thisdoesnotprecludeastaffrecommendationtoapproveordenyanyspecificrequestforawaiver.

(c)WaiversGrantedbytheBoard.TheBoard,initsdiscretion,maywaiveanyoneormoreoftherulesinSubchaptersB,C,E,andGofthischapterexceptnowaivershallbegrantedtoprovideforwardcommitments


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or if the requestedwaiver is prohibited by statute (i.e., statutory requirementsmay not be waived). TheBoard, in itsdiscretion,maygrantawaiverthat is inresponsetoanatural, federallydeclareddisasterthatoccursaftertheadoptionofthemultifamilyrules.

The Texas Department of Housing and Community Affairs (the “Department”) proposes new 10 TAC Chapter 10, Subchapter G §§10.901 - 10.904, concerning the Uniform Multifamily Rules. The purpose of the proposed new sections is to provide for fees paid to the Department in order to cover the administrative costs of implementing the program and to provide guidance to applicants and awardees with regard to their responsibilities to the Department as well as a mechanism for formal communication with the Department. The proposed repeal of existing Subchapter G is published concurrently with this rulemaking.

FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the new sections are in effect, enforcing or administering the new sections does not have any foreseeable implications related to new costs or revenues of the state or local governments.

PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of the new sections will be adequate revenue to cover the cost of monitoring compliance with the program requirements. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules.

ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that any new economic impact on small or micro-businesses is expected to be minimal, and/or offset by reductions in other fees and would only be incurred if the business engages in actions that are at its option. The average cost of filing an application is between $15,000 and $30,000, which may vary depending on the specific type of application, location of the development site, and other non-state of Texas funding sources utilized. The proposed rules do not, on average, result in an increased cost of filing an application as compared to the existing program rules.

REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015 to October 15, 2015, to receive input on the new sections. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764, attn: Teresa Morales. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015.

STATUTORY AUTHORITY. The new sections are proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the new sections are proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan, and Texas Government Code §2306.144, §2306.147, and §2306.6716.

The proposed new sections affect Chapter 2306 of the Texas Government Code, including subchapter DD, concerning Low Income Housing Tax Credit Program. The new sections affect no other statutes, articles or codes.

§10.901 Fee Schedule. §10.902 Appeals Process. §10.903 Adherence to Obligations. §10.904 Alternative Dispute Resolution (ADR) Policy.

SubchapterG–FeeSchedule,AppealsandotherProvisions

§10.901.FeeSchedule.Anyfees,asstatedinthissection,notpaidwillcauseanApplicanttobeineligibletoapply for Department funding, ineligible to receive additional Department funding associated with aCommitment, Determination Notice or Contract, and ineligible to submit extension requests, ownershiptransfers,andApplicationamendmentsuntil suchtime theDepartmentreceivespayment.Paymentsof thefeesshallbeintheformofacheckandtotheextentthereareinsufficientfundsavailable,itmaycausetheApplication, Commitment,DeterminationNotice or Contract to be terminatedorAllocation rescinded. TheExecutiveDirectormaygrantawaiverforspecificextenuatingandextraordinarycircumstances,providedtheApplicantsubmitsawrittenrequestforawaivernolaterthanten(10)businessdayspriortothedeadlineassociated with the particular fee. For those requests that do not have a specified deadline, the writtenrequestforafeewaiveranddescriptionofextenuatingandextraordinarycircumstancesmustbeincludedintheoriginalrequestcoverletter.

(1)CompetitiveHousingTaxCreditPre‐ApplicationFee.Apre‐applicationfee,intheamountof$10perUnit, basedon the total numberofUnits reflected in thepre‐application,mustbe submittedwith thepre‐applicationinorderforthepre‐applicationtobeconsideredacceptedbytheDepartment.Pre‐applicationsinwhichaCommunityHousingDevelopmentCorporation(CHDO)orQualifiedNonprofitOrganizationintendsto serve as the Managing General Partner of the Development Owner, or Control the Managing GeneralPartneroftheDevelopmentOwner,willmaybeeligibletoreceiveadiscountof10percentoffthecalculatedpre‐applicationfee.(§2306.6716(d))

(2) Refunds of Pre‐application Fees. (§2306.6716(c)) Upon written request from the Applicant, theDepartmentshallrefundthebalanceofthepre‐applicationfeeforapre‐applicationthatiswithdrawnbytheApplicant and that isnot fullyprocessedby theDepartment.The amountof refundwill be commensuratewiththelevelofreviewcompleted.Intakeanddataentrywillconstitute50percentofthereview,thresholdreviewpriortoadeficiencyissuedwillconstitute30percentofthereview,anddeficienciessubmittedandreviewedconstitute20percentofthereview.

(3)ApplicationFee.EachApplicationmustbeaccompaniedbyanApplicationfee.

(A)HousingTaxCreditApplications.Thefeewillbe$30perUnitbasedonthetotalnumberofUnits.ForApplicantshavingsubmittedacompetitivehousingtaxcreditpre‐applicationwhichmetthepre‐applicationthresholdrequirements,andforwhichapre‐applicationfeewaspaid,theApplicationfeewill be $20perUnit basedon thenumberofUnits in the fullApplication.Applications inwhichaCHDOorQualifiedNonprofitOrganization intendstoserveastheManagingGeneralPartnerof theDevelopmentOwner,orControltheManagingGeneralPartneroftheDevelopmentOwner,willmaybeeligibletoreceiveadiscountof10percentoffthecalculatedApplicationfee.(§2306.6716(d))

(B)DirectLoanApplications.Thefeewillbe$1,000perApplication.PursuanttoTexasGovernmentCode, §2306.147(b), the Department is required to waive Application fees for private nonprofitorganizations that offer expanded services such as child care, nutrition programs, job trainingassistance,healthservices,orhumanservices.InlieuoftheApplicationfee,theseorganizationsmustinclude proof of their exempt status and a description of their supportive services as part of theApplication.AnApplication fee is not required forApplications that have an existingHousingTaxCreditAllocationorHOMEContractwiththeDepartment,andconstructiononthedevelopmenthasnot begun or if requesting an increase in the existing HOME award. The Application fee is not areimbursablecostundertheHOMEProgram.

(4)RefundsofApplicationFees.UponwrittenrequestfromtheApplicant,theDepartmentshallrefundthebalance of the Application fee for an Application that iswithdrawn by the Applicant and that is not fullyprocessed by the Department. The amount of refund will be commensurate with the level of reviewcompleted.Intakeanddataentrywillconstitute20percent,thesitevisitwillconstitute20percent,eligibility

Chapter10SubchapterG 2016

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andselectionreviewwillconstitute20percent,thresholdreviewwillconstitute20percent,andunderwritingreviewwillconstitute20percent.

(5)ThirdPartyUnderwritingFee.Applicantswillbenotifiedinwritingpriortotheevaluationinwholeorin part of a Development by an independent external underwriter in accordance with §10.201(5) of thischapter(relatingtoProceduralRequirementsforApplicationSubmission),ifsuchareviewisrequired.Thefeemustbe receivedby theDepartmentprior to theengagementof theunderwriter.The feespaidby theDevelopment Owner to the Department for the external underwriting will be credited against theCommitmentorDeterminationNoticeFee,asapplicable,establishedinparagraphs(8)and(9)ofthissection,in theevent thataCommitmentorDeterminationNotice is issuedby theDepartment to theDevelopmentOwner.

(6) Administrative Deficiency Notice Late Fee. (Not applicable for Competitive Housing Tax CreditApplications). Applications that fail to resolve Administrative Deficiencies pursuant to §10.201(7) of thischaptershallincuralatefeeintheamountof$500foreachbusinessdaythedeficiencyremainsunresolved.

(7)ChallengeProcessingThirdPartyDeficiencyRequestFee.ForCompetitiveHousingTaxCredits(HTC)Applications, a fee equal to $500 foran Administrative Deficiency be issued with respect to challengessubmittedperApplication.

(8)HousingTaxCreditCommitmentFee.NolaterthantheexpirationdateintheCommitment,afeeequalto4percentoftheannualHousingCreditAllocationamountmustbesubmitted.IftheDevelopmentOwnerhaspaidthefeeandreturnsthecreditsbyNovember1ofthecurrentApplicationRound,thenarefundof50percentoftheCommitmentFeemaybeissueduponrequest.

(9)TaxExemptBondDevelopmentDeterminationNoticeFee.No later than theexpirationdate in theDetermination Notice, a fee equal to 4 percent of the annual Housing Credit Allocation amount must besubmitted.IftheDevelopmentOwnerhaspaidthefeeandisnotablecloseonthebondswithinninety(90)days of the issuance date of the Determination Notice, then a refund of 50 percent of the DeterminationNoticeFeemaybeissueduponrequest.

(10)BuildingInspectionFee.(ForHousingTaxCreditandTax‐ExemptBondDevelopmentsonly.)Nolaterthan the expiration date on the Commitment or Determination Notice, a fee of $750must be submitted.Building inspection fees in excess of $750 may be charged to the Development Owner not to exceed anadditional$250perDevelopment.

(11)Tax‐ExemptBondCredit IncreaseRequestFee.Requests for increases to thecreditamounts tobeissuedonIRSForms8609forTax‐ExemptBondDevelopmentsmustbesubmittedwitharequestfeeequalto4percentoftheamountofthecreditincreaseforone(1)year.

(12) Extension Fees. All extension requests for deadlines relating to the Carryover, 10 Percent Test(submissionandexpenditure),orCostCertificationrequirementssubmittedatleastthirty(30)calendardaysinadvanceoftheapplicabledeadlinewillnotberequiredtosubmitanextensionfee.Anyextensionrequestsubmittedfewerthanthirty(30)daysinadvanceoraftertheoriginaldeadlinemustbeaccompaniedbyanextensionfeeof$2,500.AnextensionfeewillnotberequiredforextensionsrequestedonDevelopmentsthatinvolveRehabilitationwhentheDepartmentorU.S.DepartmentofAgriculture(USDA)istheprimarylenderifUSDAortheDepartmentisthecausefortheApplicantnotmeetingthedeadline.

(13)AmendmentFees.Anamendmentrequest foranon‐materialchangethathasnotbeen implementedwillnotberequiredtopayanamendmentfee.Materialamendmentrequests(whetherimplementedornot),or non‐material amendment requests that have already been implementedwill be required to submit anamendmentfeeof$2,500.AmendmentfeesarenotrequiredfortheDirectLoanprograms.


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(14) Right of First Refusal Fee. Requests for approval of the satisfaction of the Right of First Refusalprovisionof theLandUseRestrictionAgreement (LURA)mustbeaccompaniedbyanon‐refundable feeof$2,500.

(15)QualifiedContractPre‐RequestFee.ADevelopmentOwnermustfileapreliminaryQualifiedContractRequesttoconfirmeligibilitytosubmitaQualifiedContractrequest.ThePre‐Requestmustbeaccompaniedbyanon‐refundableprocessingfeeof$250.

(16) Qualified Contract Fee. Upon eligibility approval of the Qualified Contract Pre‐Request, theDevelopment Ownermay file a Qualified Contract Request. Such requestmust be accompanied by a non‐refundableprocessingfeeof$3,000.

(17)OwnershipTransferFee.Requeststoapproveanownershiptransfermustbeaccompaniedbyanon‐refundableprocessingfeeof$500.

(18)UnusedCreditorPenaltyFee.DevelopmentOwnerswhohavemoretaxcreditsallocatedtothemthantheycansubstantiatethroughCostCertificationwillreturnthoseexcesstaxcreditspriortoissuanceofIRSForm8609. For CompetitiveHousingTax CreditDevelopments, a penalty fee equal to the one year creditamountofthelostcredits(10percentofthetotalunusedtaxcreditamount)willberequiredtobepaidbythe Owner prior to the issuance of IRS Form 8609 if the tax credits are not returned, and 8609's issued,withinonehundredeighty(180)daysoftheendofthefirstyearofthecreditperiod.ThispenaltyfeemaybewaivedwithoutfurtherBoardactioniftheDepartmentrecapturesandre‐issuesthereturnedtaxcreditsinaccordance with Internal Revenue Code, §42. If an Applicant returns a full credit allocation after theCarryover Allocation deadline required for that allocation, the Executive Director will recommend to theBoard the imposition of a penalty on the score for any Competitive Housing Tax Credit ApplicationssubmittedbythatApplicantoranyAffiliateforanyApplicationinanApplicationRoundoccurringconcurrenttothereturnofcreditsorifnoApplicationRoundispending,theApplicationRoundimmediatelyfollowingthe return of credits. If any such point penalty is recommended to be assessed and presented for finaldeterminationbytheBoard, itmust includenoticefromtheDepartmenttotheaffectedpartynot lessthanfourteen (14) calendardaysprior to the scheduledBoardmeeting.TheExecutiveDirectormay, but isnotrequired,toissueaformalnoticeafterdisclosureifitisdeterminedthatthematterdoesnotwarrantpointpenalties.ThepenaltywillbeassessedinanamountthatreducestheApplicant'sfinalawardedscorebyanadditional20percent.

(19) Compliance Monitoring Fee. (HTC and HOME Developments Only.) Upon receipt of the costcertificationforHTCorHTCandHOMEDevelopments,oruponthecompletionofthe24‐monthdevelopmentperiodandthebeginningoftherepaymentperiodforHOMEonlyDevelopments,theDepartmentwillinvoicetheDevelopmentOwnerforcompliancemonitoringfees.Theamountduewillequal$40pertaxcreditUnitand $34 per HOME designated Unit, with two fees due for units that are dually designated. For HTCDevelopments,thefeewillbecollected,retroactivelyifapplicable,beginningwiththefirstyearofthecreditperiod.ForHOMEonlyDevelopments,thefeewillbecollectedbeginningwiththefirstyearoftherepaymentperiod. The invoicemust be paid prior to the issuance of IRS Form 8609 forHTC properties. Subsequentanniversary dates onwhich the compliancemonitoring fee payments are due shall be determined by themonth the first building is placed in service. Compliance fees may be adjusted from time to time by theDepartment.

(20)Public InformationRequest Fee. Public information requests are processed by the Department inaccordance with the provisions of the Texas Government Code, Chapter 552. The Department uses theguidelinespromulgatedbytheOfficeoftheAttorneyGeneraltodeterminethecostofcopyingandothercostsofproduction.

(21)UndesirableNeighborhoodCharacteristicDisclosureFee. Applicantsthatdisclosethepresenceofundesirable neighborhood characteristics pursuant to §10.101(a)(4) of this chapter (relating to Site and


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Development Requirements and Restrictions) must submit a $500 fee for Department review of suchcharacteristics. Subsequent to paying the Undesirable Neighborhood Characteristics Disclosure Fee, if anApplicantsubmitsanApplication for thesameDevelopmentSite, theApplicationFeeassessedpursuant toparagraph(3)ofthissectionshallbereducedby$500.

(212)AdjustmentofFeesbytheDepartmentandNotificationofFees.(§2306.6716(b))Allfeeschargedby the Department in the administration of the tax credit and HOME programs will be revised by theDepartment from time to time as necessary to ensure that such fees compensate the Department for itsadministrative costs and expenses. Unless otherwise determined by the Department, all revised fees shallapplytoallApplicationsinprocessandallDevelopmentsinoperationatthetimeofsuchrevisions.

§10.902.AppealsProcess(§2306.0321;§2306.6715).

(a) An Applicant or Development Ownermay appeal decisionsmade by the Department pursuant to theprocessidentifiedinthissection.Mattersthatcanbeappealedinclude:

(1)AdeterminationregardingtheApplication'ssatisfactionofapplicablerequirements,SubchapterBofthischapter(relatingtoSiteandDevelopmentRequirementsandRestrictions)andSubchapterCof this chapter (relating to Application Submission Requirements, Ineligibility Criteria, BoardDecisions and Waiver of Rules for Applications), pre‐application threshold criteria, underwritingcriteria;(2)ThescoringoftheApplicationundertheapplicableselectioncriteria;(3)ArecommendationastotheamountofDepartmentfundingtobeallocatedtotheApplication;(4)Misplacement of an Application or parts of an Application,mathematical errors in scoring anApplication,orproceduralerrorsresultinginunequalconsiderationoftheApplicant'sproposal;(5)DenialofachangetoaCommitmentorDeterminationNotice;(6)Denialofachangetoaloanagreement;(7)DenialofachangetoaLURA;(8)AnyDepartmentdecisionthatresultsintheerroneousterminationofanApplication;and(9)Anyothermatterforwhichanappealispermittedunderthischapter.

(b)AnApplicantorDevelopmentOwnermaynotappealadecisionmaderegardinganApplicationfiledbyoranissuerelatedtoanotherApplicantorDevelopmentOwner.

(c)AnApplicantorDevelopmentOwnermust file itsappeal inwritingwith theDepartmentnot later thanseven(7)calendardaysafterthedatetheDepartmentpublishestheresultsofanystageoftheApplicationevaluationor otherwisenotifies theApplicant orDevelopmentOwner of a decision subject to appeal. Theappeal must be signed by the person designated to act on behalf of the Applicant or an attorney thatrepresents the Applicant. For Application related appeals, the Applicant must specifically identify theApplicant'sgroundsforappeal,basedontheoriginalApplicationandadditionaldocumentationfiledwiththeoriginalApplicationassupplementedinaccordancewiththelimitationsandrequirementsofthischapter.

(d)TheExecutiveDirectormayrespondinwritingnotlaterthanfourteen(14)calendardaysafterthedateofactualreceiptoftheappealbytheDepartment.IftheApplicantisnotsatisfiedwiththeExecutiveDirector'sresponse to the appeal or the Executive Director does not respond, the Applicantmay appeal directly in


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writingtotheBoard.Whileadditional informationcanbeprovidedinaccordancewithanyrulesrelatedtopublic comment before the Board, the Department expects that a full and complete explanation of thegrounds for appeal and circumstances warranting the granting of an appeal be disclosed in the appealdocumentationfiledwiththeExecutiveDirector.FulldisclosureallowstheExecutiveDirectortomakeafullyinformeddecisionbasedonacompleteanalysisofthecircumstances,andverificationofanyinformationthatmaywarrantagrantingoftheappealintheApplicant'sorDevelopmentOwner'sfavor.

(e)AnappealfiledwiththeBoardmustbereceivedbyDepartmentstaffnotmorethanseven(7)daysafteraresponsefromtheExecutiveDirectorandatleastseven(7)dayspriortotheapplicableBoardmeetingoriftheperiod foranExecutiveDirector responsehaselapsed theappeal canbeheardby theBoard if filedatleastthree(3)dayspriortotheapplicablemeeting.

(f)BoardreviewofanApplicationrelatedappealwillbebasedontheoriginalApplication.

(g)ThedecisionoftheBoardregardinganappealisthefinaldecisionoftheDepartment.

(h) TheDepartmentwill post to itswebsite an appeal filedwith the Department or Board and any otherdocumentrelatingtotheprocessingofanApplicationrelatedappeal.(§2306.6717(a)(5))

§10.903.AdherencetoObligations.(§2306.6720)AnyApplicant,DevelopmentOwner,orotherPersonthatfails to adhere to its obligations with regard to the programs of the Department, whether contractual orotherwise, made false or misleading representations to the Department with regard to an Application,request for funding, or compliance requirements, or otherwise violated a provision of Texas GovernmentCode,Chapter2306oraruleadoptedunderthatchapter,maybesubjectto:

(1)AssessmentofadministrativepenaltiesinaccordancewiththeDepartment’srulesregardingtheassessmentofsuchpenalties.Eachdaytheviolationcontinuesoroccurs isaseparateviolationforpurposesofimposingapenalty;and/or(2)inthecaseofthecompetitiveLowIncomeHousingTaxCreditProgram,apointreductionofuptoten (10)points foranyApplication involving thatApplicantover thenext twoApplicationRoundssucceedingthedateonwhichtheDepartmentfirstgiveswrittennoticeofanysuchfailuretoadhereto obligations or false ormisleading representations. Point reductions under this sectionmay beappealedtotheBoard.

§10.904. Alternative Dispute Resolution (ADR) Policy. In accordance with Texas Government Code,§2306.082, it is the Department's policy to encourage the use of appropriate ADR procedures under theGovernmentalDisputeResolutionAct,TexasGovernmentCode,Chapter2010,toassistinresolvingdisputesunder theDepartment's jurisdiction.Asdescribed inCivilPracticesandRemediesCode,Chapter154,ADRproceduresincludemediation.ExceptasprohibitedbylawandtheDepartment'sExParteCommunicationspolicy,theDepartmentencouragesinformalcommunicationsbetweenDepartmentstaffandApplicants,andotherinterestedpersons,toexchangeinformationandinformallyresolvedisputes.TheDepartmentalsohasadministrativeappealsprocessestofairlyandexpeditiouslyresolvedisputes.IfatanytimeanApplicantorotherpersonwouldliketoengagetheDepartmentinanADRprocedure,thepersonmaysendaproposaltothe Department's Dispute Resolution Coordinator. For additional information on the Department's ADRPolicy, see theDepartment'sGeneralAdministrativeRuleonADRat §1.17of this title.AnyApplicantmayrequest an informal conferencewith staff to attempt to resolve any appealablematter, and the ExecutiveDirectormaytolltherunningofperiodsforappealtoaccommodatesuchmeetings.Intheeventasuccessfulresolution cannot be reached, the statements made in the meeting process may not be used by theDepartmentasadmissions.

The Texas Department of Housing and Community Affairs (the “Department”) proposes the repeal of 10 TAC Chapter 10, Uniform Multifamily Rules Subchapter A §§10.1 - 10.4, concerning General Information and Definitions. The purpose of the repeal is to allow for the replacement of the existing sections with a new Subchapter A that encompasses requirements for all applications applying for multifamily funding through the Department. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the repeal is in effect, enforcing or administering the repeal does not have any foreseeable implications related to costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will involve the replacement of existing Subchapter A with a new Subchapter A that encompasses requirements for all applications applying for multifamily funding through the Department. There is no change in economic cost to any individuals required to comply with the repeal. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no new economic effect on small or micro-businesses. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015, to October 15, 2015, to receive input on the repeal. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The repeal is proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the repeal is proposed pursuant to Texas Government Code, §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed repeal affects Texas Government Code Chapter 2306, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The repeal affects no other statutes, articles or codes. §10.1. Purpose. §10.2. General. §10.3. Definitions. §10.4. Program Dates.

The Texas Department of Housing and Community Affairs (the “Department”) proposes the repeal of 10 TAC Chapter 10, Uniform Multifamily Rules Subchapter B §10.101, concerning Site and Development Requirements and Restrictions. The purpose of the repeal is to allow for the replacement of the section with a new section that encompasses restrictions and requirements for all development sites for which applications are submitted in applying for multifamily funding through the Department. Proposed new §10.101 is published concurrently with this proposed repeal. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the repeal is in effect, enforcing or administering the repeal does not have any foreseeable implications related to costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the replacement of the existing section with a new section that encompasses requirements for all applications applying for multifamily funding through the Department. There is no change in economic cost to any individuals required to comply with the repeal. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no economic effect on small or micro-businesses. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015, to October 15, 2015, to receive input on the repeal. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The repeal is proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the repeal is proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed repeal affects Texas Government Code Chapter 2306, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The repeal affects no other statutes, articles or codes. §10.101. Site and Development Requirements and Restrictions.

The Texas Department of Housing and Community Affairs (the “Department”) proposes the repeal of 10 TAC Chapter 10, Uniform Multifamily Rules Subchapter C §§10.201 - 10.207, concerning Application Submission Requirements, Ineligibility Criteria, Board Decisions and Waiver of Rules. The purpose of the repeal is to allow for the replacement of the existing sections with new sections that encompass requirements for all applications applying for multifamily funding through the Department. Proposed new §§10.201 - 10.207 are being published concurrently with this rulemaking. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the repeal is in effect, enforcing or administering the repeal does not have any foreseeable implications related to costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the replacement of the sections with new sections that encompass requirements for all applications applying for multifamily funding through the Department. There is no new or additional economic cost to any persons required to comply with the repeal. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no new economic effect on small or micro-businesses. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015, to October 15, 2015, to receive input on the repeal. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764. ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The repeal is proposed pursuant to Texas Government Code, §2306.053, which authorizes the Department to adopt rules. Additionally, the repeal is proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan. The proposed repeal affects Texas Government Code Chapter 2306, including Subchapter DD, concerning the Low Income Housing Tax Credit Program. The repeal affects no other statutes, articles or codes. §10.201. Procedural Requirements for Application Submission. §10.202. Ineligible Applicants and Applications. §10.203. Public Notifications. §10.204. Required Documentation for Application Submission. §10.205. Required Third Party Reports. §10.206. Board Decisions. §10.207. Waiver of Rules for Applications.

The Texas Department of Housing and Community Affairs (the “Department”) proposes the repeal of 10 TAC Chapter 10, Uniform Multifamily Rules, Subchapter G §§10.901 - 10.904, concerning Fee Schedule, Appeals and Other Provisions. The purpose of the repeal is to allow for the adoption of new Subchapter G to provide for updated guidance relating to fees paid to the Department in order to cover the administrative costs of implementing the program and to provide guidance to applicants and awardees with regard to their responsibilities to the Department as well as a mechanism for formal communication with the Department. FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the repeal is in effect, enforcing or administering the repeal does not have any foreseeable implications related to new costs or revenues of the state or local governments. PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal will be the replacement of existing Subchapter G with a new Subchapter G that encompasses requirements for all applications applying for multifamily funding through the Department. There is no change in economic cost to any individuals required to comply with the repeal. ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES. The Department has determined that there will be no economic effect on small or micro-businesses. REQUEST FOR PUBLIC COMMENT. The public comment period will be held September 18, 2015, to October 15, 2015, to receive input on the repeal. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Teresa Morales, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-0764, ALL COMMENTS MUST BE RECEIVED BY 5:00 P.M. OCTOBER 15, 2015. STATUTORY AUTHORITY. The repeal is proposed pursuant to Texas Government Code §2306.053, which authorizes the Department to adopt rules. Additionally, the repeal is proposed pursuant to Texas Government Code §2306.67022, which specifically authorizes the Department to adopt a qualified allocation plan, and Texas Government Code §2306.144, §2306.147, and §2306.6716. §The proposed repeal affects Texas Government Code Chapter 2306, including Subchapter DD, concerning Low Income Housing Tax Credit Program. The repeal affects no other statutes, articles or codes. §10.901. Fee Schedule. §10.902. Appeals Process. §10.903. Adherence to Obligations. §10.904. Alternative Dispute Resolution (ADR) Policy.

Draft Multifamily Rules

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Transcript of Draft Multifamily Rules