Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,407
8313-8478 p. ; 28 cm.View a full description of this periodical.
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COMMENT SUMMARY: Commenters (1) and (2) suggested that
events of noncompliance that cannot be corrected during the
corrective action period be excluded from the applicant's com-
pliance history considered by the Executive Award and Review
Advisory Committee.
STAFF RESPONSE: The requested change was not con-
templated by the recent legislative amendments to Texas
Government Code, Chapter 2306, and Texas Government
Code, 2306.057 provides that any relevant noncompliance
must be considered. Staff does not recommend any change.
4. 1.5(d)
COMMENT SUMMARY: Commenter (3) suggested the following
language:
"(d) From the division responsible for the receipt and application
of payments on loans held by the Department and the receipt
of fees associated with multifamily bond developments or hous-
ing tax credit developments, EARAC shall receive the following
reports regarding the applicant and each affiliate of the appli-
cant:..."
STAFF RESPONSE: Staff agrees that the additional language
improves the rule. The language is included in the rule.
5. 1.5(e)
COMMENT SUMMARY: Commenter (3) suggested the following
language:
"(e) From the division responsible for overseeing asset manage-
ment issues for affordable rental properties assisted by the De-
partment EARAC shall receive a report documenting..."
STAFF RESPONSE: Staff agrees that the additional language
improves the rule. The language is included in the rule.
6. 1.5(e)(3)
COMMENT SUMMARY: Commenter (3) expressed concern
about subjectivity or unwritten standards regarding the Asset
Management Division reports that will be provided to EARAC
and suggested that instead of "significant modifications or
amendment" that EARAC should be informed of "material
amendments."
STAFF RESPONSE: Staff agrees. The change is included in the
rule.
7. 1.5(f)
COMMENT SUMMARY: Commenter (3) suggested adding "In
the interests of an open and transparent process, a copy of any
EARAC report should be given to the applicant."
STAFF RESPONSE: If there is anything that could possibly re-
sult in EARAC not recommending or imposing conditions upon a
request, the applicant will be notified in accordance with 1.5(g).
Since in all other cases there would be nothing for the applicant
to respond to, staff does not recommend any change based on
this comment.
8. 1.5(g)
COMMENT SUMMARY: Commenter (3) requested clarification
of this subsection, specifically regarding the use of the phrase
"during a review" and "prior to EARAC notification." Commenter
(3) further commented that certain issues cannot be resolved
and that the applicant should be provided five (5) business days
to resolve or "comment upon" the issue.STAFF RESPONSE: "During a review" means during a previ-
ous participation review; during the time that the Compliance,
Financial Services or Asset Management Staff is actually doing
the work of reviewing the applicant's compliance history. "Prior
to EARAC notification" means before the time that EARAC is
or will be notified. Staff agrees that the rule should provide the
applicant the opportunity to "comment upon" an issue and that
change is included in the rule.
9. 1.5(j)
COMMENT SUMMARY: Commenter (3) suggested clarification
of this subsection and the use of the word affiliate used in 1.5(j).
STAFF RESPONSE: Staff agrees that clarification will improve
the rule and will adopt the following language:
"(j) EARAC is designated to review and shall follow the same
procedure prior to approval of an entity as a reservation system
participant and for assessing the compliance history of a pro-
posed transferee (other than an affiliate of the current owner)
when they seek approval to acquire an ownership interest in an
affordable rental property assisted by the Department."
10. 1.5(k)
COMMENT SUMMARY: Commenter (3) proposed removing "an
award of funding" and adding the following language:
"(k) An applicant or any affiliate of an applicant who is not recom-
mended for assistance based upon EARAC's review may appeal
EARAC's determination in accordance with 1.7 and 1.8 of this
chapter (relating to Staff Appeals Process and Board Appeals
Process)."
STAFF RESPONSE: Staff agrees that the word "assistance" is
an improvement to "an award of funding" since this rule also cov-
ers ownership transfers. However, since this rule is specifically
related to the review of an applicant's compliance history, staff
does not agree that those words should be struck from the rule.
Staff recommends the following language:
"(k) An applicant or any affiliate of an applicant who is not rec-
ommended for assistance based upon EARAC's review of their
compliance history may appeal EARAC's determination in accor-
dance with 1.7 and 1.8 of this chapter (relating to Staff Appeals
Process and Board Appeals Process)."
11. General
COMMENT SUMMARY: Commenters (1) and (2) suggested that
"In instances where an owner owns multiple properties, the num-
ber of violations should be divided by the number of properties
such owner owns when comparing violations to other owners
with violations. One owning 20 properties with 10 violations go-
ing to EARAC is a lesser violator compared to someone owning
one property with two violations."
STAFF RESPONSE: It is not anticipated that the number of prop-
erties versus the number of violations will be determinative in
the evaluation of an applicant's compliance history. Instead, the
responsiveness of the owner, the reason for the finding of non-
compliance, steps the owner has made to avoid noncompliance
in the future, etc., are expected to be the focus of the decision.
Staff does not recommend any change in response to this com-
ment.
12. General
COMMENT SUMMARY: Commenter (3) stated "Under current
practice, an owner in material non-compliance is prohibited fromADOPTED RULES November 22, 2013 38 TexReg 8407
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Texas. Secretary of State. Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013, periodical, November 22, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth379965/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.