| (iii) Priority 3 applications: Once the Certificate
of Reservation has been issued, the same Application submission requirements
as indicated in clause (ii) of this subparagraph apply. Specifically,
an Applicant may submit the Application including or excluding the
Third Party Reports, however, only after the Application is considered
complete (i.e. Application Fee and all Third Party Reports) will staff
schedule the Application for a Board meeting or target date for the
issuance of the Determination Notice. The timing of when a Priority
3 Application is submitted to the Department is up to the Applicant
and if not submitted on the fifth of the month, it will be staff's
discretion as to which Board meeting the Application will be presented,
or target date for the administrative issuance of the Determination
Notice, as applicable.
(B) Non-Lottery Applications or Applications Not Successful
in Lottery.
(i) Applications designated as Priority 1 or 2 by the
TBRB must submit the Application Fee described in §11.901 of
this chapter and the complete Application, with the exception of the
Third Party Reports, before the Certificate of Reservation can be
issued by the TBRB. The Third Party Reports, if not submitted with
the Application to meet the TBRB submission requirement, must then
be submitted on the fifth day of the month and the Application may
be scheduled for a Board meeting at which the decision to have the
Determination Notice issued would be made, or the target date for
the administrative issuance of the Determination Notice, as applicable,
approximately 90 days following such submission deadline. If the fifth
day falls on a weekend or holiday, the submission deadline shall be
on the next business day. If the Third Party Reports are submitted
on a date other than the fifth of the month, it will be at staff's
discretion as to which Board meeting the Application will be presented,
or what will be the target date for the administrative issuance of
the Determination Notice, as applicable. Applicants may not submit
the Application until staff receives notice from TBRB that the application
is next in line to receive a Certificate of Reservation; or
(ii) An Application designated as Priority 3 will not
be accepted until after the TBRB has issued a Certificate of Reservation
and may be submitted on the fifth day of the month. Priority 3 Application
submissions must be complete, including all Third Party Reports and
the required Application Fee described in §11.901 of this chapter,
before they will be considered accepted by the Department and meeting
the submission deadline for the applicable Board meeting date or administrative
issuance of the Determination Notice, as applicable.
(C) Generally, the Department will require at least
90 days to review an Application unless staff can complete its evaluation
in sufficient time for earlier consideration. If the Application is
layered with other Department funds the Department will require at
least 120 days to complete its evaluation. An Applicant should expect
this timeline to apply regardless of whether the Board will need to
approve the issuance of the Determination Notice or it is determined
that staff can issue the Determination Notice administratively for
a particular Application. Applicants should be aware that unusual
financing structures, portfolio transactions, the need to resolve
Administrative Deficiencies and changes made by an Applicant after
the Application has been reviewed by staff may require additional
time to review. In instances where an Application necessitates more
staff time to review than normal, where an Application is suspended
due to the inability to resolve Administrative Deficiencies by the
original deadline, or an extension to respond to an Administrative
Deficiency is requested, staff is not obligated to ensure the Application
meets the original target date for a Board Meeting or administrative
issuance of a Determination Notice, as applicable. Moreover, such
review period may be longer depending on the volume of Applications
under review and statutory program timing constraints associated with
such Applications. The prioritization of Applications will be subject
to the review priority established in paragraph (5) of this section.
(D) Withdrawal of Certificate of Reservation. Applications
under review by the Department that have the Certificate of Reservation
withdrawn and for which a new Certificate of Reservation is not expected
to be issued within a reasonable amount of time, as determined by
staff, the Department will consider the Application withdrawn and
the Applicant will be provided notice to that effect. Once a new Certificate
of Reservation is issued, it will be at the Department's discretion
to determine whether the existing Application can still be utilized
for purposes of review or if a new Application, including payment
of another Application Fee, must be submitted. The Department will
not prioritize the processing of the new Application over other Applications
under review once a new Certificate of Reservation is issued, regardless
of the stage of review the Application was in prior to the withdrawal
of the Certificate of Reservation, or that it maintain the originally
selected Board meeting or targeted administrative issuance date for
the Determination Notice, as applicable.
(E) Direct Loan Applications must be submitted in accordance
with the requirements in this chapter, §13.5 (relating to the
Application and Award Process), and the applicable Notice of Funding
Availability (NOFA).
(3) Withdrawal of Application. An Applicant may withdraw
an Application prior to or after receiving an award of funding by
submitting to the Department written notice of the withdrawal. To
the extent a Direct Loan award is returned after Board approval, penalties
may be imposed on the Applicant and Affiliates in accordance with §13.11(a)
of this title (relating to Post Award Requirements).
(4) Competitive Evaluation Process. Applications believed
likely to be competitive will undergo a program review for compliance
with submission requirements and selection criteria, as applicable.
In general, Application reviews by the Department shall be conducted
based upon the likelihood that an Application will be competitive
for an award based upon the region, set-aside, self score, received
date, or other ranking factors. Thus, non-competitive or lower scoring
Applications may never be reviewed. The Director of Multifamily Finance
will identify those Applications that will receive a full program
review based upon a reasonable assessment of each Application and
its relative position to other Applications, but no Application with
a competitive ranking shall be skipped or otherwise overlooked. This
initial assessment may be a high level assessment, not a full assessment.
The Real Estate Analysis division shall underwrite Applications that
received a full program review and remain competitive to determine
financial feasibility and an appropriate funding amount. In making
this determination, the Department will use §11.302 of this chapter
(relating to Underwriting Rules and Guidelines) and §13.6 of
this title (relating to Multifamily Direct Loan Rule) as applicable.
The Department may have an external party perform all or part of the
underwriting evaluation and components thereof to the extent it determines
appropriate. The expense of any external underwriting shall be paid
by the Applicant prior to the commencement of the aforementioned evaluation
pursuant to §11.901(5) of this chapter (relating to Fee Schedule,
Appeals and other Provisions). The reviews by the Multifamily Finance
Division and the Real Estate Analysis Division will be conducted to
meet the requirements of the Program or NOFA under which the Application
was submitted. Applications will undergo a previous participation
review in accordance with Chapter 1, Subchapter C of this title (relating
to Previous Participation) and a Development Site may be evaluated
by the Department or its agents through a physical site inspection
or site visit, (which may include neighboring areas), independent
of or concurrent with a site visit that may be performed in conjunction
with §11.101(a)(3) (relating to Neighborhood Risk Factors). The
Department may provide a scoring notice reflecting such score to the
Applicant which will trigger appeal rights and corresponding deadlines
pursuant to Tex. Gov't Code §2306.6715 and §11.902 of this
chapter (relating to Appeals Process). For an Application for which
the selection criteria are reviewed, the scoring notice for the Application
will be sent to the Applicant no later than 21 days prior to the final
Board approval of awards.
(5) Order of review of Applications under various Programs.
This paragraph identifies how ties or other matters will be handled
when dealing with de-concentration requirements, capture rate calculations,
and general order of review of Applications submitted under different
programs.
(A) De-concentration. Priority will be established
based on the earlier date associated with an Application. The dates
that will be used to establish priority are as follows:
Cont'd... |
