| (a) Program funds may be utilized for Acquisition or
refinance, and New Construction, of single family housing units occupied
by the purchaser as shown on an executory contract for conveyance.
(b) The Household's income must not exceed 80 percent
AMFI.
(c) The Department shall limit the availability of
funds for CFD for a minimum of 60 days for Activities proposing to
serve Households whose income does not exceed 60 percent AMFI, and
for properties located in a Colonia as defined in Tex. Gov't Code §2306.083.
(d) The Department will require a first lien position.
(e) Direct Activity Costs, exclusive of Match funds,
are limited to the amounts described in this subsection; however,
not more than once per year, the Board in its sole discretion, may
increase or decrease by up to five percent of the limitation for Direct
Activity Costs. Total Activity costs may not exceed HUD Subsidy Limits.
Dollar amounts in a Household commitment contract are set at the time
of contract execution and may not be adjusted through this process.
Current dollar amounts under this subsection will be reflected on
the Department's website.
(1) Refinance, acquisition, and closing costs: $35,000.
In the case of a contract for deed housing unit that involves the
refinance or acquisition of a loan on an existing MHU and/or the loan
for the associated land, the Executive Director may grant an exception
to exceed this amount, however, the Executive Director will not grant
an exception to exceed $40,000 of assistance;
(2) Reconstruction and New Construction of site-built
housing: the lesser of $120 per square foot of conditioned space or
$135,000, or for Households of five or more Persons the lesser of
$120 per square foot of conditioned space or $150,000 for a four-bedroom
unit; and
(3) Replacement with an energy efficient MHU: $90,000.
(f) In addition to the Direct Activity Costs allowable
under subsection (e) of this section, a sum not to exceed $15,000
may be used to pay for any or all of the following, as applicable:
(1) Necessary environmental mitigation as identified
during the Environmental review process;
(2) Installation of an aerobic septic system; and
(3) Homeowner requests for accessibility features.
(g) Activity soft costs eligible for reimbursement
for Activities of the following types are limited to:
(1) Acquisition or refinance, and New Construction
of site-built housing: no more than $13,500 per housing unit; and
(2) Acquisition or refinance, and replacement with
an MHU: no more than $5,000 per housing unit.
(h) Funds for administrative costs are limited to no
more than eight percent of the Direct Activity Costs, exclusive of
Match funds.
(i) The assistance to an eligible Household shall be
in the form of a loan in the amount of the Direct Activity Costs excluding
Match funds. The loan will be at zero percent interest and include
deferral of payment and annual pro rata forgiveness with a term based
on the federal affordability requirements as defined in 24 CFR §92.254.
For refinancing activities, the minimum loan term and affordability
period is 15 years, regardless of the amount of HOME assistance.
(j) To ensure affordability, the Department will impose
resale or recapture provisions established in this Chapter.
(k) Site-built housing units must meet or exceed the
2000 International Residential Code and all applicable local codes,
standards, ordinances, zoning requirements, and the standards outlined
in 24 CFR §92.251(a)(2) as applicable. MHUs must be installed
according to the manufacturer's instructions and in accordance with
Federal and State laws and regulations.
(l) Unless an exception is requested by the Household
and approved by the Division Director prior to submission of the Activity,
each unit must meet the design and quality requirements described
in paragraphs (1) - (4) of this subsection:
(1) Include the following amenities: Wired with RG-6
COAX or better and CAT3 phone cable or better to each bedroom and
living room; Blinds or window coverings for all windows; Oven/Range;
Exhaust/vent fans (vented to the outside) in bathrooms; Energy-Star
or equivalently rated lighting in all rooms, which may include LED
bulbs. The living room and each bedroom must contain at least one
ceiling lighting fixture and wiring must be capable of supporting
ceiling fans;
(2) Contain no less than two bedrooms. Each unit must
contain complete physical facilities and fixtures for living, sleeping,
eating, cooking, and sanitation;
(3) Each bedroom must be no less than 100 square feet,
have a length or width no less than eight fee, be self-contained with
a door, have at least one window that provides exterior access, and
have at least one closet that is not less than two feet deep and three
feet wide and high enough to contain at least five feet of hanging
space; and
(4) Be no less than 800 total net square feet for a
two bedroom home; no less than 1,000 total net square feet for a three
bedroom and two bathroom home; and no less than 1,200 total net square
feet for a four bedroom and two bathroom home.
(m) Housing proposed to be constructed under this subchapter
must meet the requirements of Chapters 20 and 21 of this Title (relating
to Single Family Programs Umbrella Rule and Minimum Energy Efficiency
Requirements for Single Family Construction Activities, respectively)
and must be certified by a licensed architect or engineer.
(1) The Department will reimburse only for the first
time a set of architectural plans are used, unless any subsequent
site specific fees are paid to a Third Party architect, or a licensed
engineer.
(2) A NOFA may include incentives or otherwise require
architectural plans to incorporate "green building" elements.
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