| (a) Set-Asides. Specific types of Activities or Developments
for which a portion of MFDL funds may be reserved in a NOFA will be
grouped in categories called Set-Asides. Not all Set-Asides will be
available in every NOFA, and the Board may approve Set-Asides not
described in this section. The amount of a single award may be credited
to multiple Set-Asides, in which case the credited portion of funds
may be repositioned into an oversubscribed Set-Aside prior to a defined
collapse deadline.
(1) General / Soft Repayment Set-Aside.
(A) Applicants seeking to qualify for NHTF under this
set-aside must propose Developments in which all Units assisted with
MFDL funds are available for households earning the greater of the
poverty rate or 30% AMI, and have rents no higher than the rent limits
for extremely low-income tenants in 24 CFR §93.302(b).
(B) Applicants seeking to qualify for HOME under this
set-aside must propose Developments in which all Units assisted with
MFDL funds are available to households earning no more than 80% AMI
and have rents no higher than the rent limits 24 CFR §92.2.
(C) A portion of the General / Soft Repayment Set-Aside
may be reallocated into the CHDO Set-Aside in order to fully fund
a CHDO award that exceeds the remaining amount in the CHDO Set-Aside.
(2) CHDO Set-Aside. Unless waived or reduced by HUD,
a portion of the Department's annual HOME allocation will be set aside
for eligible CHDOs meeting the requirements of the definition of Community
Housing Development Organization in 24 CFR §92.2 and 10 TAC §13.2(2)
of this chapter. Applicants under the CHDO Set-Aside must be proposing
to develop housing on Development Sites located outside Participating
Jurisdictions (PJ), unless the award is made within a Persons with
Disabilities (PWD) Set-Aside, or the requirement under Tex. Gov't
Code §2306.111(c)(1) has been waived by the Governor. A grant
for CHDO operating expenses may be awarded in conjunction with an
award of MFDL funds under this Set-Aside, if no other CHDO operating
grants have been awarded to the Applicant in the same Calendar year,
in accordance with 24 CFR §92.208. Applications under the CHDO
Set-Aside may not have a for profit special limited partner within
the ownership organization chart.
(b) Regional Allocation and Collapse. All funds subject
to Tex. Gov't Code §2306.111 or as described to HUD in planning
documents will be allocated to regions and potentially subregions
based on a Regional Allocation Formula (RAF) within the applicable
Set-Asides (unless the funds have already been through a RAF of the
annual NOFA and/or Special Purpose NOFA). The RAF methodology may
differ by fund source. HOME funds will be allocated in accordance
with Tex. Gov't Code Chapter 2306. The end date and Application Acceptance
Date for the regionally allocated funds will be identified in the
NOFA but in no instance shall it be less than 30 days from the date
a link to the Board approved NOFA or NOFA Amendment is published on
the Department's website.
(1) After funds have been made available regionally
and the period for regional allocation has expired, remaining funds
within each respective Set-Aside may collapse and be pooled together
on a date identified in the NOFA. All Applications received prior
to these collapse dates will continue to hold their priority unless
they are withdrawn, terminated, suspended, or funded.
(2) Funds remaining after expiration of the Set-Asides
on the end date identified in the NOFA, which have not been requested
in the form of a complete Application, may be collapsed and pooled
together to be made available statewide on a first-come first-served
basis to Applications submitted after the collapse dates, as further
described in the NOFA.
(3) In instances where the RAF would result in regional
or subregional allocations insufficient to fund an Application, the
Department may use an alternative method of distribution, including
an early collapse, revised formula or other methods as approved by
the Board, and reflected in the NOFA.
(c) Notice of Funding Availability (NOFA). MFDL funds
will be distributed pursuant to the terms of a published NOFA that
provides the specific collapse dates and deadlines as well as Set-Aside
and RAF amounts applicable to each NOFA, along with scoring criteria,
priorities, award limits, and other Application information. Set-asides,
RAFs, and total funding amounts may increase or decrease in accordance
with the provisions herein without further Board action as authorized
by the Board.
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