| (a) Authority. The rules in this chapter apply to the
funds provided to Multifamily Developments through the Multifamily
Direct Loan Program (MFDL or Direct Loan Program) by the Texas Department
of Housing and Community Affairs (the Department). Notwithstanding
anything in this chapter to the contrary, loans and grants issued
to finance the development of multifamily rental housing are subject
to the requirements of the laws of the State of Texas, including but
not limited to Tex. Gov't Code, Chapter 2306, and federal law pursuant
to the requirements of Title II of the Cranston-Gonzalez National
Affordable Housing Act, Division B, Title III of the Housing and Economic
Recovery Act (HERA) of 2008 - Emergency Assistance for the Redevelopment
of Abandoned and Foreclosed Homes, Section 1497 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act: Additional Assistance
for Neighborhood Stabilization Programs, Title I of the Housing and
Economic Recovery Act of 2008, Section 1131 (Public Law 110-289),
and the implementing regulations 24 CFR Parts 91, 92, 93, and 570
as they may be applicable to a specific fund source. The Department
is authorized to administer Direct Loan Program funds pursuant to
Tex. Gov't Code, Chapter 2306.
(b) General. This chapter applies to Applications submitted
for, and award of, MFDL funds by the Department and establishes the
general requirements associated with the application and award process
for such funds. Applicants pursuing MFDL assistance from the Department
are required to certify, among other things, that they have familiarized
themselves with all applicable rules that govern that specific program
including, but not limited to this chapter, Chapter 1 of this title
(relating to Administration), Chapter 2 of this title (relating to
Enforcement), Chapter 10 of this title (relating to Uniform Multifamily
Rules), Chapter 11 of this title (relating to Qualified Allocation
Plan (QAP)), and Chapter 12 of this title (relating to Multifamily
Housing Revenue Bond Rules) as applicable. The Applicant is also required
to certify that it is familiar with the requirements of any other
federal, state, or local financing sources that it identifies in its
Application. Any conflict with rules, regulations, or statutes will
be resolved on a case by case basis that allows for compliance with
all requirements. Conflicts that cannot be resolved may result in
Application ineligibility, with the right to an Appeal as provided
in 10 TAC §1.7 of this title (relating to Appeals Process) or
10 TAC §11.902 of this title (relating to Appeals Process for
the Housing Tax Credit program), as applicable.
(c) Waivers. Requests for waivers of any program rules
or requirements must be made in accordance with 10 TAC §11.207
of this title (relating to Waiver of Rules), as limited by the rules
in this chapter. Waiver requirements are provided in paragraphs (1)
- (3) of this subsection:
(1) Rule Waivers and NOFA Amendments prior to Construction
Completion. For Direct Loan Developments, an Applicant may request,
at the latest at Application submission, that the Department amend
its NOFA, amend its Consolidated Plan or One Year Action Plan, or
ask HUD to grant a waiver of its regulations, if such request will
not impact the timing of the Application's review, nor alter the scoring
or satisfaction of threshold requirements for the Housing Tax Credits
or other Department resources. Such requests will be presented to
the Department's Board. The Board may not waive rules that are federally
required, or that have been incorporated as a required part of the
Department's Consolidated Plan or One Year Action Plan (OYAP) to the
U.S. Department of Housing and Urban Development (HUD), unless those
Plans are so amended by the earlier of a date the NOFA is closed or
by an earlier date that is identified by the Board. Such items include
§13.8 of this chapter, relating to Loan Structure and Underwriting
Requirements, the interest rate published in the NOFA, the maximum
subsidy limits as published in the NOFA, the priorities listed in
the NOFA, the eligibility requirements of applicants describe in rule
or the NOFA, scoring, and the tiebreaker procedure. Prior to Contract,
except as otherwise described in rule, the Application Acceptance
Date will then be the date the Department completes the amendment
process or receives a waiver from HUD, if funds are still available
in the NOFA. After Contract, but prior to Construction Completion
staff will not recommend a waiver or NOFA Amendment;
(2) Utility Allowance Waivers with Project-Based Vouchers.
Upon request before or with the submittal of the Application or at
the time the Application is amended to reflect the vouchers, for Developments
that are layered with Project-Based Vouchers awarded under 24 CFR
Part 983 from a Housing Authority that is not Moving to Work Housing
Authority, Department staff will submit a waiver to the Office of
Community Planning and Development at HUD to allow the Development
to use the Public Housing Utility Allowance. For Project-Based Vouchers
from a Housing Authority that is a Moving to Work Housing Authority,
the Applicant must have the Moving to Work Housing Authority obtain
this waiver from the appropriate HUD office or agree that the Development
will be all bills-paid before Contract Execution. These waivers, if
granted by HUD, will not require the Development to receive a new
Application Acceptance Date; and
(3) Waivers under Closed NOFAs. The Board may not waive
any portion of a closed NOFA prior to Construction Completion. Thereafter,
the Board may only waive any portion of a closed NOFA as part of an
approved Asset Management Division work out. Allowable Post-Closing
Amendments are described in 10 TAC §13.13 of this chapter (relating
to Post-Closing Amendments to Direct Loan Terms).
(d) Eligibility and Threshold Requirements. Applications
for Multifamily Direct Loan funds must meet all applicable eligibility
and threshold requirements of Chapter 11 of this title (relating to
the Qualified Allocation Plan (QAP)), unless otherwise excepted in
this rule or NOFA.
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