Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021 Page: 6,061
5985-6306 p. ; 28 cm.View a full description of this periodical.
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STATUTORY AUTHORITY. The proposed repeal is made pur-
suant to Tex. Gov't Code 2306.053, which authorizes the De-
partment to adopt rules.
Except as described herein the proposed repealed sections af-
fect no other code, article, or statute.
11.901. Fee Schedule.
11.902. Appeals Process.
11.903. Adherence to Obligations. (52306.6720)
11.904. Alternative Dispute Resolution (ADR) Policy.
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on September 3,
2021.
TRD-202103501
Bobby Wilkinson
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: October 17, 2021
For further information, please call: (512) 475-1762CHAPTER 11.
PLAN (QAP)QUALIFIED ALLOCATION
The Texas Department of Housing and Community Affairs (the
"Department") proposes new 10 TAC Chapter 11, Qualified Al-
location Plan (QAP), 11.1 - 11.10, 11.101, 11.201 - 11.207,
11.301 - 11.306, 11.901 - 11.907, and 11.1001 - 11.1009. The
purpose of the proposed new chapter is to provide compliance
with Tex. Gov't Code 2306.67022 and to update the rule to:
clarify multiple definitions; update the Program Calendar; add
provision for Developments comprised of single family homes in-
tended for ownership in the Competitive Housing Tax Credit Pro-
gram; remove a scoring item that generally duplicates another
and expands the radius for Proximity to Jobs so that more po-
tential Development sites will be competitive; add a scoring item
related to proximity to veterans' health care; simplify the require-
ments for a Concerted Revitalization Plan; allow for increased
costs in scoring; revise timelines and requirements associated
with Tax-Exempt Bond Developments; add provisions for Com-
mitments, Determination Notices, and Carryover Agreements;
provide for the use of 2022 Competitive Housing Tax Credits to
assist 2019 and 2020 Competitive Housing Tax Credit Applicants
negatively impacted by the COVID-19 pandemic; and, specify
provisions for termination for Applications seeking Tax-Exempt
Bond or Direct Loan funds.
Tex. Gov't Code 2001.0045(b) does not apply to the rule pro-
posed for action for two reasons: 1) the state's adoption of the
QAP is necessary to comply with IRC 42; and 2) the state's
adoption of the QAP is necessary to comply with Tex. Gov't Code
2306.67022. The Department has analyzed this proposed rule-
making and the analysis is described below for each category of
analysis performed.
a. GOVERNMENT GROWTH IMPACT STATEMENT RE-
QUIRED BY TEX GOV'T CODE 2001.0221.
Mr. Bobby Wilkinson, Executive Director, has determined that,
for the first five years the proposed new rule would be in effect:1. The rule does not create or eliminate a government program,
but relates to the readoption of this rule which makes changes
to an existing activity, concerning the allocation of Low-Income
Housing Tax Credits (LIHTC) and other Multifamily Development
programs.
2. The new rule does not require a change in work that would
require the creation of new employee positions, nor are the rule
changes significant enough to reduce work load to a degree that
eliminates any existing employee positions.
3. The rule changes do not require additional future legislative
appropriations.
4. The rule changes will not result in any increases in fees. The
proposed rule removes a Determination Notice Reinstatement
Fee.
5. The rule is not creating a new regulation, except that it is
replacing a rule being repealed simultaneously to provide for re-
visions.
6. The rule will not limit or repeal an existing regulation, but can
be considered to "expand" the existing regulations on this activ-
ity because the proposed rule has sought to clarify Application
requirements.
Some "expansions" are offset by corresponding "contractions" in
the rules, compared to the 2021 QAP. Notably, the Department
has sought to remove superfluous language wherever possible
and to consolidate rules to reflect current process. A new sub-
chapter is added to provide assistance to 2019 and 2020 Com-
petitive Housing Tax Credit Applications negatively impacted by
cost increases associated with the COVID-19 pandemic.
These additions, removals, and revisions to the QAP are neces-
sary to ensure compliance with IRC 42 and Tex. Gov't Code
2306.67022.
7. The rule will not increase or decrease the number of individ-
uals subject to the rule's applicability; and
8. The rule will not negatively affect the state's economy, and
may be considered to have a positive effect on the state's econ-
omy because changes at 10 TAC 11.9(c)(7), Proximity to Job
Areas, may help to encourage the development of affordable
multifamily housing in robust markets with strong and growing
economies.
b. ADVERSE ECONOMIC IMPACT ON SMALL OR MI-
CRO-BUSINESSES OR RURAL COMMUNITIES AND REG-
ULATORY FLEXIBILITY REQUIRED BY TEX GOV'T CODE
2006.002. The Department, in drafting this proposed rule,
has attempted to reduce any adverse economic effect on
small or micro-business or rural communities while remaining
consistent with the statutory requirements of Tex. Gov't Code,
2306.67022. Some stakeholders have reported that their
average cost of filing an Application is between $50,000 and
$60,000, which may vary depending on the specific type of Ap-
plication, 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.
1. The Department has evaluated this rule and determined that
none of the adverse effect strategies outlined in Tex. Gov't Code
2006.002(b) are applicable.PROPOSED RULES September 17, 2021 46 TexReg 6061
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Texas. Secretary of State. Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021, periodical, September 17, 2021; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1385246/m1/79/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.