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tenth day of the month following each quarter's end (January, April,
July, and October) and continue on a quarterly basis until the entire
development is complete as evidenced by the final Application and
Certificate for Payment (AIA Document G702 and G703) or equivalent
form approved for submission by the construction lender and/or investor.
The construction status report submission consists of:
(1) the executed partnership agreement with the investor
(identifying all Guarantors) or, for Developments receiving an award
only from the Department's Direct Loan Programs, other documents setting
forth the legal structure and ownership. If identified Guarantors
or Principals of a Guarantor entity were not already identified as
a Principal of the Owner, Developer, or Guarantor at the time of Application,
a non-material amendment must be requested in accordance with §10.405
of this subchapter and the new Guarantors and all of its Principals,
as applicable, must be reviewed in accordance with Chapter 1, Subchapter
C of this title (relating to Previous Participation Reviews);
(2) the executed construction contract and construction
loan agreement. If the loan has not closed, the anticipated closing
date must be provided and, upon closing, the agreement must be provided
to the Department;
(3) the most recent Application and Certificate for
Payment (AIA Document G702 and G703) certified by the Architect of
Record (or equivalent form approved for submission by the construction
lender and/or investor); and
(4) all Third Party construction inspection reports
not previously submitted.
(i) LURA Origination (Competitive HTC Only). The Development
Owner must request a copy of the HTC LURA as directed in the Post
Award Activities Manual. The Department will draft a LURA for the
Development Owner that will impose the income and rent restrictions
identified in the Development's final underwriting report and other
representations made in the Application, including but not limited
to specific commitments to provide tenant services, to lease to Persons
with Disabilities, and/or to provide specific amenities. After origination,
the Department executed LURA and all exhibits and addendums will be
sent to the Development Owner to execute and record in the real property
records for the county in which the Development is located. The original
recorded LURA must be returned to the Department no later than the
end of the first year of the Credit Period. In general, no Housing
Tax Credits are allowed to be issued for a building unless there is
a properly executed and recorded LURA in effect at the end of the
first year of the Credit Period. Nothing in this section negates a
Development Owner's responsibility for full compliance with §42(h)(6)
of the Code. The Department will not issue IRS Form(s) 8609 until
it receives the original, properly-recorded LURA, or has alternative
arrangements which are acceptable to the Department and approved by
the Executive Director. Electronically recorded LURAs provided to
the Department will be acceptable in lieu of the original, recorded
copy.
(j) Cost Certification (Competitive and Non-Competitive
HTC, and related activities only). The Department conducts a feasibility
analysis in accordance with §42(m)(2)(C)(i)(III) of the Code
and Subchapter D of this chapter (relating to Underwriting and Loan
Policy) to make a final determination on the allocation of Housing
Tax Credits. The requirements for cost certification include those
identified in paragraphs (1) - (3) of this subsection.
(1) Development Owners must file cost certification
documentation no later than January 15 following the first year of
the Credit Period, as defined in §42(f)(1) of the Code.
(2) The Department will evaluate the cost certification
documentation and notify the Development Owner of any additional required
documentation needed to complete the review. The Department reserves
the right to request additional documents or certifications as it
deems necessary or useful in the determination of the Development's
eligibility for a final Housing Tax Credit allocation amount. Any
communication issued to the Development Owner pertaining to the cost
certification documentation may also be sent to the syndicator.
(3) IRS Form(s) 8609 will not be issued until the conditions
as stated in subparagraphs (A) - (H) of this paragraph have been met.
The Development Owner has:
(A) provided evidence that all buildings in the Development
have been placed in service by:
(i) December 31 of the year the Commitment was issued;
(ii) December 31 of the second year following the year
the Carryover Allocation Agreement was executed; or
(iii) the approved Placed in Service deadline;
(B) provided a complete final cost certification package
in the format prescribed by the Department. As used herein, a complete
final cost certification package means a package that meets all of
the Department's criteria with all required information and exhibits
listed in clauses (i) - (xxxv) of this subparagraph, and pursuant
to the Post Award Activities Manual. If any item on this list is determined
to be unclear, deficient, or inconsistent with the cost certification
review completed by the Department, a Request for Information (RFI)
will be sent to the Development Owner. Failure to respond to the requested
information within a thirty (30) day period from the date of request
may result in the termination of the cost certification review and
request for 8609s and require a new request be submitted with a Cost
Certification Extension Fee as described in Subchapter G of this chapter
(relating to Fee Schedule, Appeals and Other Provisions). Furthermore,
cost certification reviews that remain open for an extended period
of time (more than 365 days) may be reported to the EARAC during any
related party previous participation review conducted by the Department.
(i) Owner's Statement of Certification
(ii) Owner Summary & Organization Charts for the
Owner, Developer, and Guarantors
(iii) Evidence of Qualified Nonprofit or CHDO Participation
(iv) Evidence of Historically Underutilized Business
(HUB) Participation
(v) Development Team List
(vi) Development Summary with Architect's Certification
(vii) Development Change Documentation
(viii) As Built Survey
(ix) Closing Statement
(x) Title Policy
(xi) Title Policy Update
(xii) Placement in Service
(xiii) Evidence of Placement in Service
(xiv) Architect's Certification of Completion Date
and Date Ready for Occupancy
(xv) Auditor's Certification of Acquisition/Rehabilitation
Placement in Service Election
(xvi) Independent Auditor's Report
(xvii) Independent Auditor's Report of Bond Financing
(xviii) Development Cost Schedule
(xix) Contractor's Application for Final Payment (G702/G703)
(xx) Additional Documentation of Offsite Costs
(xxi) Rent Schedule
(xxii) Utility Allowances
(xxiii) Annual Operating Expenses
(xxiv) 30 Year Rental Housing Operating Pro Forma
(xxv) Current Operating Statement
(xxvi) Current Rent Roll
(xxvii) Summary of Sources and Uses of Funds
(xxviii) Financing Narrative
(xxix) Final Limited Partnership Agreement
(xxx) All Loan Agreements and Promissory Notes (except
for Agreements and Notes issued directly by the Department)
(xxxi) Architect's Certification of Fair Housing Requirements
(xxxii) Development Owner Assignment of Individual
to Compliance Training
(xxxiii) TDHCA Compliance Training Certificate
(xxxiv) TDHCA Final Inspection Clearance Letter
(xxxv) Other Documentation as Required
(C) informed the Department of and received written
approval for all amendments, extensions, and changes in ownership
relating to the Development in accordance with §10.405 of this
chapter (relating to Amendments and Extensions) and §10.406 of
this chapter (relating to Ownership Transfers (§2306.6713));
(D) paid all applicable Department fees, including
any past due fees;
(E) met all conditions noted in the Department underwriting
report;
(F) corrected all issues of noncompliance, including
but not limited to noncompliance status with the LURA (or any other
document containing an Extended Low-income Housing Commitment) or
the program rules in effect for the subject Development, as described
in this chapter. Developments in the Corrective Action Period and/or
with any uncorrected issues of noncompliance, outside of the Corrective
Action Period, will not be issued IRS Form(s) 8609s until all events
of noncompliance are corrected or otherwise approved by the Executive
Award Review and Advisory Committee;
(G) completed an updated underwriting evaluation in
accordance with Subchapter D of this chapter based on the most current
information at the time of the review.
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