Texas Register, Volume 46, Number 38, Pages 5983-6306, September 17, 2021 Page: 6,077
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2306.6702(a)(5)(B) that was previously allocated housing tax credits
set aside under subsection (a) of this section does not lose eligibility
for those credits if the portion of Units reserved for public housing
as a condition of eligibility for the credits under Tex. Gov't Code
2306.6714 (a-1)(2) are later converted under RAD.
(D) An Application for a Development that includes the
demolition of the existing Units which have received the financial ben-
efit described in Tex. Gov't Code 2306.6702(a)(5)(i) will not qualify
as an At-Risk Development unless the redevelopment will include at
least a portion of the same site. Alternatively, pursuant to Tex. Gov't
Code 2306.6702(a)(5)(B), an Applicant may propose relocation of the
existing Units in an otherwise qualifying At-Risk Development if:
(i) the affordability restrictions and any At-Risk el-
igible subsidies are approved to be transferred with the units proposed
for Rehabilitation or Reconstruction prior to the tax credit Carryover
deadline;
(ii) the Applicant seeking tax credits must propose
the same number of restricted Units (the Applicant may, however, add
market rate Units); and
(iii) the new Development Site must either qualify
for points on the Opportunity Index under #11.9(c)(4) of this chapter
(relating to Competitive HTC Selection Criteria); OR
(iv) the local Governing Body of the applicable mu-
nicipality or county (if completely outside of a municipality) in which
that Development is located must submit a resolution confirming that
the proposed Development is supported by the municipality or county
in order to carry out a previously adopted plan that meets the require-
ments of 11.9(d)(7). Development Sites that cross jurisdictional
boundaries must provide such resolutions from both local governing
bodies.
(E) If Developments at risk of losing affordability from
the financial benefits available to the Development are able to retain,
renew, or replace the existing financial benefits and affordability they
must do so unless regulatory barriers necessitate elimination of all or a
portion of that benefit for the Development.
(i) Evidence of the legal requirements that will un-
ambiguously cause the loss of affordability and that this will occur
within the two calendar years of July 31 of the year the Application
is submitted, and must be included with the application; and
(ii) For Developments qualifying under Tex. Gov't
Code 2306.6702(a)(5)(B), only a portion of the subsidy must be re-
tained for the proposed Development, but no less than 25% of the pro-
posed Units must be public housing units supported by public housing
operating subsidy. ( 2306.6714(a-1). If less than 100% of the public
housing benefits are transferred to the proposed Development, an ex-
planation of the disposition of the remaining public housing benefits
must be included in the Application, as well as a copy of the HUD-ap-
proved plan for demolition and disposition.
(F) Nearing expiration on a requirement to maintain af-
fordability includes Developments eligible to request a Qualified Con-
tract under Code, 42. Evidence must be provided in the form of a copy
of the recorded LURA, the first year's IRS Forms 8609 for all buildings
showing Part II of the form completed and, if applicable, documenta-
tion from the original application regarding the Right of First Refusal.
The Application must also include evidence that any applicable Right
of First Refusal procedures have been completed prior to the pre-appli-
cation Final Delivery Date.
(G) An amendment to any aspect of the existing tax
credit property sought to enable the Development to qualify as anAt-Risk Development, that is submitted to the Department after the
Application has been filed and is under review will not be accepted.
11.6. Competitive HTC Allocation Process.
This section identifies the general allocation process and the method-
ology by which awards during the Application Round are made.
(1) Regional Allocation Formula. The Department shall
initially make available in each Rural Area and Urban Area of each
Uniform State Service Region (subregion) Housing Tax Credits in an
amount not less than $600,000 in each Rural and Urban subregion, con-
sistent with the Regional Allocation Formula developed in compliance
with Tex. Gov't Code 2306.1115. As authorized by Tex. Gov't Code
2306.111(d-3), the Department will reserve $600,000 in housing tax
credits for Applications in rural areas in each uniform state service re-
gion. The process of awarding the funds made available within each
subregion shall follow the process described in this section. Where a
particular situation that is not contemplated and addressed explicitly by
the process described herein, Department staff shall formulate a recom-
mendation for the Board's consideration based on the objectives of the
regional allocation formula together with other policies and purposes
set out in Tex. Gov't Code, Chapter 2306 and the Department shall pro-
vide the public the opportunity to comment on and propose alternatives
to such a recommendation. In general, such a recommendation shall
not involve broad reductions in the funding request amounts solely to
accommodate regional allocation and shall not involve rearranging the
competitive ranking of Applications within a particular subregion or
set-aside except as described herein. If the Department determines that
an allocation recommendation would cause a violation of the $3 mil-
lion credit limit per Applicant, the Department will make its recom-
mendation based on the criteria described in 11.4(a) of this chapter.
The Department will publish on its website on or before December lof
each year, initial estimates of Regional Allocation Formula percent-
ages and limits of credits available, and the calculations periodically,
if those calculations change, until the credits are fully allocated. Any
2022 credits designated for the purpose of Supplemental Allocations,
but not awarded to Supplemental Allocations through the process de-
scribed in Subchapter F of this chapter, will be added to the total pool
of credits available for the Application Round and the Regional Allo-
cation Formula updated to reflect such increases.
(2) Credits Returned and National Pool Allocated After
January 1. For any credits returned after January 1 and eligible for
reallocation (not including credit returned and reallocated under force
majeure provisions), the Department shall first return the credits to the
subregion or set-aside from which the original allocation was made.
The credits will be treated in a manner consistent with the allocation
process described in this section and may ultimately flow from the
subregion and be awarded in the collapse process to an Application in
another region, subregion or set-aside. For any credit received from
the "national pool" after the initial approval of awards in late July,
the credits will be added to any remaining credits and awarded to the
next Application on the waiting list for the state collapse, if sufficient
credits are available to meet the requirements of the Application as
may be amended after underwriting review.
(3) Award Recommendation Methodology.
( 2306.6710(a) - (f); 2306.111) The Department will assign, as
described herein, Developments for review by the program and
underwriting divisions. In general, Applications reviews will be
conducted in the order described in subparagraphs (A) - (F) of this
paragraph based upon the Applicant self-score and an initial program
review. The procedure identified in subparagraphs (A) - (F) of this
paragraph will also be used in making recommendations to the Board.
(A) USDA Set-Aside Application Selection (Step 1).
The first set of reviews will be those Applications with the highestPROPOSED RULES September 17, 2021 46 TexReg 6077
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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/m1/95/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.