The following words and terms, when used in this chapter, shall
have the following meanings, unless the context clearly indicates
otherwise. Any capitalized terms not specifically mentioned in this
section shall have the meaning as defined in Tex. Gov't Code, Chapter
2306; §§141, 142, and 145 of the Internal Revenue Code;
24 CFR Parts 91, 92, and 93; 2 CFR Part 200; and 10 TAC Chapters 1
of this title regarding Administration, 2 of this title regarding
Enforcement, 10 of this title regarding Uniform Multifamily Rules,
and 11 of this title regarding the Qualified Allocation Plan.
(1) Application Acceptance Date--The date the MFDL
Application is considered received by the Department as described
in this chapter, chapter 11 of this title, or in the NOFA.
(2) Community Housing Development Organization (CHDO)--A
private nonprofit organization with experience developing or owning
affordable rental housing that meets the requirements in 24 CFR Part
92 for purposes of receiving HOME Investment Partnerships Program
(HOME) funds under the CHDO Set-Aside. A member of a CHDO's board
cannot be a Principal of the Development beyond their role as a board
member of the CHDO or be an employee of the development team, and
may not receive financial benefit other than reimbursement of expenses
from the CHDO (e.g., a voting board member cannot also be a paid executive).
(3) Construction Completion or Development Period--The
Development Period is the time allowed to complete construction, which
includes, without limitation, that necessary title transfer requirements
and construction work has been fully performed, the certificate(s)
of occupancy (if New Construction or reconstruction), Certificate
of Substantial Completion (AIA Form G704), Form HUD-92485 (for instances
in which a federally insured HUD loan is utilized), or equivalent
notice has been issued.
(4) Deobligated Funds--The funds released by the Development
Owner or recovered by the Department canceling a Contract or award
involving some or all of a contractual financial obligation between
the Department and a Development Owner or Applicant.
(5) Federal Affordability Period--The period commencing
on the later of the date after Construction Completion and after all
Direct Loan funds have been disbursed for the project, or the date
of Project Completion as defined in 24 CFR §92.2 or §93.3,
as applicable, and ending on the date which is the required number
of years as defined by the federal program.
(6) HOME--The HOME Investment Partnership Program,
authorized by Title II of the Cranston-Gonzalez National Affordable
Housing Act.
(7) HOME Match-Eligible Unit--A Unit in the Development
that is not assisted with HOME Program funds, but would qualify as
eligible for Match under 24 CFR Part 92. Unless otherwise identified
by the provisions in the NOFA, TCAP RF and matching contribution on
NSP and NHTF Developments must meet all criteria to be classified
as HOME-Match Eligible Units.
(8) Housing Contract System (HCS)--The electronic information
system established by the Department for tracking, funding, and reporting
Department Contracts and Developments. The HCS is primarily used by
the Department for Direct Loan Programs administered by the Department.
(9) Land Use Restriction Agreement (LURA) Term--The
period commencing on the effective date of the LURA and ending on
the date which, at a minimum, is the greater of the loan term or 30
years. The LURA may include the Federal Affordability Period, in addition
to the State Affordability Period requirements and State restrictive
criteria.
(10) Matching Contribution (Match)--A contribution
to a Development from nonfederal sources that may be in one or more
of the forms provided in subparagraphs (A) through (E) of this paragraph:
(A) Cash contribution (grant), except for cash contributions
made by investors in a limited partnership or other business entity
subject to pass through tax benefits in a tax credit transaction or
owner equity (including Deferred Developer Fee and General Partner
advances);
(B) Reduced fees or donated labor from certain eligible
contractors, subcontractors, architects, attorneys, engineers, excluding
any contributions from a party related to the Developer or Owner;
(C) Net present value of yield foregone from a below
market interest rate loan as described in HUD Community Planning and
Development (CPD) Notice 97-03;
(D) Waived or reduced fees or taxes from cities or
counties not related to the Applicant in connection with the proposed
Development; or
(E) Donated land or land sold by an unrelated third
party at a price below market value, as evidenced by a third party
appraisal.
(11) NHTF--National Housing Trust Fund.
(12) NOFA--Notice of Funding Availability.
(13) NSP--Neighborhood Stabilization Program.
(14) Qualifying Unit--Means a Unit designated for Multifamily
Direct Loan use and occupancy in compliance with State and federal
regulations, as set forth in the Contract. Except if the Development
is all-bills paid, Qualifying Units may not also have a Project-Based
Voucher issued under 24 CFR Part 983, unless the Application contains
permission from the Public and Indian Housing Division of HUD for
the layered units to use a utility allowance that is not the Public
Housing Utility Allowance, or the Applicant has received permission
from the Community Planning and Development Division of HUD for the
layered units to use the Public Housing Utility Allowance.
(15) Relocation Plan--A residential anti-displacement
and relocation assistance plan and budget in an Application that addresses
residential and non-residential displacement and complies with the
Uniform Relocation Assistance and Real Property Act as implemented
at 49 CFR Part 24, HUD Handbook 1378, and the TDHCA Relocation Handbook.
Additionally, some HOME and NSP funded Developments must comply with
Section 104(d) of the Housing and Community Development Act of 1974
(as amended), and 24 CFR Part 42 (as modified for NSP and HOME American
Rescue Plan (ARP) funds), which requires a one-for-one replacement
of occupied and vacant, occupiable low- and moderate-income dwelling
units demolished or converted. Guidance is on the Department's website
at https://www.tdhca.state.tx.us/multifamily/home/index.htm. The Relocation
Plan must be in form and substance consistent with requirements of
the Department.
(16) Section 234 Condominium Housing Basic Mortgage
Limits (Section 234 Condo Limits)--The per-unit subsidy limits for
all MFDL funding. These limits take into account whether or not a
Development is elevator served and any local conditions that may make
development of multifamily housing more or less expensive in a given
metropolitan statistical area. If the high cost percentage adjustment
applicable to the Section 234 Condo Limits for HUD's Fort Worth Multifamily
Hub is applicable for all Developments that TDHCA finances through
the MFDL Program, then confirmation of that applicability will be
included in the applicable NOFA.
(17) Site and Neighborhood Standards--HUD requirements
for New Construction or reconstruction Developments funded by NHTF
(24 CFR §93.150) or New Construction Developments funded by HOME
(24 CFR §92.202). Proposed Developments must provide evidence
that the Development will comply with these federal regulations in
the Application. Guidance for successful submissions is provided on
the Department website at https://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm.
Applications that are unable to comply with requirements in 24 CFR §983.57(e)(2)
and (3) will not be eligible for HOME or NHTF.
(18) State Affordability Period--The LURA Term as described
in the MFDL contract and loan documents and as required by the Department
in accordance with the Chapter 2306, Texas Gov't Code which may be
an additional period after the Federal Affordability Period.
(19) Surplus Cash--Except when the first lien mortgage
is a federally insured HUD mortgage that is subject to HUD's surplus
cash definition, Surplus Cash is any cash remaining:
(A) After the payment of:
(i) All sums due or currently required to be paid under
the terms of any superior lien;
(ii) All amounts required to be deposited in the reserve
funds for replacement;
(iii) Operating expenses actually incurred by the borrower
for the Development during the period with an appropriate adjustment
for an allocable share of property taxes and insurance premiums;
(iv) Recurring maintenance expenses actually incurred
by the borrower for the Development during the period; and
(v) All other obligations of the Development approved
by the Department; and
(B) After the segregation of an amount equal to the
aggregate of all special funds required to be maintained for the Development;
and
(C) Excluding payment of:
(i) All sums due or currently required to be paid under
the terms of any subordinate liens against the property;
(ii) Any development fees that are deferred including
those in eligible basis; and
(iii) Any payments or obligations to the borrower,
ownership entities of the borrower, related party entities; any payment
to the management company exceeding 5% of the effective gross income;
incentive management fee; asset management fees; or any other expenses
or payments that shall be negotiated between the Department and borrower.
(20) TCAP Repayment Funds--(TCAP RF) the Tax Credit
Assistance Payment program funds.
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