| (a) Applications. MFDL Applicants must follow the applicable
requirements in 10 TAC Chapter 11, Subchapter C (relating to Application
Submission Requirements, Ineligibility Criteria, Board Decisions and
Waiver of Rules) and the Notice of Funding Availability for which
the Application is submitted.
(b) Application Acceptance Date. Applications will
be considered received on the business day of receipt, unless a different
time period is described in the Department's rules or NOFA. If an
Application is received after 5:00 p.m., Austin local time, it will
be determined to have been received on the following business day.
Applications received on a non-business day will be considered received
on the next day the Department is open. Applications will be considered
complete at the time all Application materials, required third party
reports and application fee(s) are received by the Department. Within
certain Set-Asides or priorities, the date of receipt may be fixed,
regardless of the earlier actual date a complete Application is received,
if so specified in the Department's rules or NOFA. If multiple Applications
have the same Application Acceptance Date, in the same region or subregion
(as applicable), within the same Set-Aside, and for 9% then score
and tiebreaker factors, as described 10 TAC §11.7 of this title
(relating to Tie Breaker Factors) will be used to determine the Application's
rank.
(c) Market Analysis. Applications proposing Rehabilitation
that request MFDL as the only source of Department funding may be
exempted from the Market Analysis requirement in 10 TAC §11.205(2)
(relating to Required Third Party Reports) if the Development's rent
rolls for the most recent six months reflect occupancy of at least
80% of all Units.
(d) Required Site Control Agreement Provisions. All
Applicants for MFDL funds where the Development is subject to environmental
review under 24 CFR Part 50 and Part 58 must include the following
provisions in the purchase contract or site control agreement if the
subject property is not already owned by the Applicant:
(1) "Notwithstanding any other provision of this Contract,
Purchaser shall have no obligation to purchase the Property, and no
transfer of title to the Purchaser may occur, unless and until the
Department has provided Purchaser and/or Seller with a written notification
that:
(A) It has completed a federally required environmental
review and its request for release of federal funds has been approved
and, subject to any other Contingencies in this Contract,
(i) the purchase may proceed, or
(ii) the purchase may proceed only if certain conditions
to address issues in the environmental review shall be satisfied before
or after the purchase of the property; or
(B) It has determined that the purchase is exempt from
federal environmental review and a request for release of funds is
not required."; and for all Developments using federal funding
(2) "The Buyer does not have the power of eminent domain
relating to the purchase and acquisition of the Property. The Buyer
may use federal funds from the U.S. Department of Housing and Urban
Development (HUD) to complete this purchase. HUD will not use eminent
domain authority to condemn the Property. All parties entered this
transaction voluntarily and the Buyer has notified the Seller of what
it believes the value of the Property to be in accordance with 49
CFR Part 24 Appendix A. If negotiations between both parties fail,
Buyer will not take further action to acquire the Property."
(e) Oversubscribed Funds for Competitive HTC-Layered
Applications. Should MFDL funds be oversubscribed in a Set-Aside or
for a fund source that has geographic limitations within a Set-Aside,
Applications concurrently requesting Competitive HTC will be notified
and may amend their Application to accommodate another fund source
and make changes that still meet threshold requirements in 10 TAC
Chapters 11 and 13 of this title, if such changes do not impact scoring
under 10 TAC §11.9 (relating to Competitive HTC Selection Criteria).
The Department will provide notice to all impacted Applicants in the
case of over-subscription, which will include a deadline by which
the Applicant must respond to the Department. Multiple Applications
from a single or affiliated Applicants do not constitute oversubscription,
and the Applicant(s) will not be able to amend their Applications
as described in this subsection. If MFDL funds become available between
the Market Analysis Delivery Date, and the date of the Department's
Board meeting at which final Competitive HTC awards are made, the
MFDL funds will not be reserved for Competitive HTC-layered Applications,
unless the reservation is described in the NOFA.
(f) Availability of funds for Non-Competitive HTC-layered
Applications. If an Application requesting layered Non-Competitive
HTC and Direct Loan funds is terminated under 10 TAC §11.201(2)(E)
(relating to Withdrawal of Certificate of Reservation), the Application
will receive a new Application Acceptance Date for purposes of Direct
Loan funds upon submission to the Department of the new Certificate
of Reservation if the Board has not made an award. Direct Loan funds
will not be reserved for terminated Applications, and may not be available
for the Application with a new Reservation.
(g) Eligibility Criteria and Determinations.
(1) The Department will evaluate Applications received
under a NOFA for eligibility and threshold pursuant to the requirements
of this chapter and Chapter 11 of this title (relating to the Qualified
Allocation Plan). The Department may terminate the Application if
there are changes at any point prior to MFDL loan closing that would
have had an adverse effect on the score and ranking order of the Application
that would have resulted in the Application not being recommended
for an award or being ranked below another Application received prior
to the subject Application.
(2) Applicants requesting MFDL as the only source of
Department funds must be able to demonstrate that a Principal of the
Developer, Development Owner, or General Partner has previously developed
and placed into service a minimum of 50 multifamily housing units.
It is the Applicant's responsibility to identify and submit sufficient
evidence of this experience in the Application. If the Department
determines that the evidence submitted is not substantial, additional
evidence may be submitted through the Administrative Deficiency process,
if it is available. If the Applicant is unable to provide satisfactory
evidence, the Applicant will be ineligible for funding.
(h) Effective rules and contractual terms. The contractual
terms of an award will be governed by and reflect the rules in effect
at the time of Application; however, any changes in federal requirements
will be reflected in the contractual terms. Further provided, that
if after award, but prior to execution of such Contract, there are
new rules in effect, the Direct Loan awardee may elect to be governed
by the new rules, provided the Application would continue to have
been eligible for award under the rules and NOFA in effect at the
time of Application.
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