| the documentation in subparagraph (B) of this paragraph.
Required documents include:
(i) An IRS determination letter which states that the
nonprofit organization has been determined by the Internal Revenue
Service to be tax-exempt under §501(c)(3) or (4) of the Code;
(ii) The Nonprofit Participation exhibit as provided
in the Application, including a list of the names and contact information
for all board members, directors, and officers;
(iii) A Third Party legal opinion stating:
(I) That the nonprofit organization is not Affiliated
with or Controlled by a for-profit organization and the basis for
that opinion;
(II) That the nonprofit organization is eligible, as
further described, for a Housing Credit Allocation from the Nonprofit
Set-Aside pursuant to Code, §42(h)(5) and the basis for that
opinion;
(III) That one of the exempt purposes of the nonprofit
organization is to provide low-income housing;
(IV) That the nonprofit organization prohibits a member
of its board of directors, other than a chief staff member serving
concurrently as a member of the board, from receiving material compensation
for service on the board. If the Application includes a request for
Community Housing Development Corporation (CHDO) funds, no member
of the board may receive compensation, including the chief staff member;
(V) That the Qualified Nonprofit Development will have
the nonprofit entity or its nonprofit Affiliate or subsidiary be the
Developer or co-Developer as evidenced in the development agreement;
and
(VI) That the nonprofit organization has the ability
to do business as a nonprofit in Texas;
(iv) a copy of the nonprofit organization's most recent
financial statement as prepared by a Certified Public Accountant;
and
(v) evidence in the form of a certification that a
majority of the members of the nonprofit organization's board of directors
principally reside:
(I) in this state, if the Development is located in
a Rural Area; or
(II) not more than ninety (90) miles from the Development,
if the Development is not located in a Rural Area.
(B) All Other Applications. Applications that involve
a §501(c)(3) or (4) nonprofit, housing finance corporation or
public facility corporation as the General Partner or Owner must submit
an IRS determination letter which states that the nonprofit organization
has been determined by the Internal Revenue Service to be tax-exempt
under §501(c)(3) or (4) of the Code; and the Nonprofit Participation
exhibit as provided in the Application. If the Application involves
a nonprofit that is not exempt from taxation under §501(c)(3)
or (4) of the Code, then they must disclose in the Application the
basis of their nonprofit status. Housing finance corporations or public
facility corporations that do not have such IRS determination letter
shall submit documentation evidencing creation under their respective
chapters of the Texas Local Government Code and corresponding citation
for an exemption from taxation.
(14) Feasibility Report. This report, compiled by the
Applicant or Third Party Consultant, and prepared in accordance with
this paragraph, which reviews site conditions and development requirements
of the Development and Development Site, is required and must meet
all of the criteria provided in subparagraphs (A) to (F) of this paragraph.
Acquisition and Rehabilitation Applications are exempt from this requirement.
If an Application involves Acquisition and Rehabilitation along with
other activities, the Feasibility Report is required for the entire
Development. Tax-Exempt Bond Developments that do not include a request
for Direct Loan or where the Department is not the bond issuer, only
subparagraph (D) of this paragraph is required to be submitted.
(A) For all Applications, careful focus and attention
should be made regarding any atypical items materially impacting costs
or the successful and timely execution of the Development plan. The
report must also include the following statement, "any person signing
this Report acknowledges that the Department may publish the full
report on the Department's website, release the report in response
to a request for public information and make other use of the report
as authorized by law."
(B) An Executive Summary must provide a narrative overview
of the Development in sufficient detail that would help a reviewer
of the Application better understand the site, the site plan, off
site requirements (including discussion of any seller contributions
or reimbursements), any other unique development requirements, and
their impact on Site Work and Off- Site Construction costs. It should
specifically describe any atypical or unusual factors that will impact
site design or costs, including but not limited to: Critical Water
Quality Zones, habitat protection requirements, construction for environmental
conditions (wind, hurricane, flood), and local design restrictions.
(C) The Report should contain a general statement regarding
the level of due diligence that has been done relating to site development
(including discussions with local government development offices).
Where ordinances or similar information is required, provide website
links rather than copies of the ordinance. Additionally, it should
contain:
(i) a summary of zoning requirements;
(ii) subdivision requirements;
(iii) property identification number(s) and millage
rates for all taxing jurisdictions;
(iv) development ordinances;
(v) fire department requirements;
(vi) site ingress and egress requirements; and
(vii) building codes, and local design requirements
impacting the Development.
(D) Survey as defined by the Texas Society of Professional
Surveyors in their Manual of Practice for Land Surveying in Texas
(Category 1A - Land Title Survey or Category 1B - Standard Land Boundary
Survey). Surveys (excluding those for Rehabilitation Developments)
may not be older than 24 months from the beginning of the Application
Acceptance Period.
(E) Preliminary site plan for New Construction or Adaptive
Reuse Developments prepared by the civil engineer with a statement
that the plan materially adheres to all applicable zoning, site development,
and building code ordinances. The site plan must identify all structures,
site amenities, parking spaces and driveways, topography (using either
existing seller topographic survey or U.S. Geological Survey (USGS)/other
database topography), site drainage and detention, water and waste
water utility tie-ins, general placement of retaining walls, set-
back requirements, and any other typical or locally required items.
Off-site improvements required for utilities, detention, access or
other requirement must be shown on the site plan or ancillary drawings.
(F) Architect or civil engineer prepared statement
describing the entitlement, site development permitting process and
timing, building permitting process and timing, and an itemization
specific to the Development of total anticipated impact, site development
permit, building permit, and other required fees.
(15) HOME Match Requirements. All Developments with
HOME Match Eligible Units will be required to enter into a Contract
and a Land Use Restriction Agreement with the Department.
(A) Tax-Exempt Bond Developments where the Department
is the bond issuer, must meet criteria to be classified as HOME Match
Eligible Units. Tax-Exempt Bond Developments through a Local Bond
Issuer, that include a certification from the Participating Jurisdiction
where the Development site(s) is located stating that the bond proceeds
are being used as HOME Match funds for the Participating Jurisdiction(s)
where the Development Site(s) is located will be exempt from having
to provide HOME Match Eligible Units. This certification is not required
if the Development site(s) are located outside a local Participating
Jurisdiction, as the Bonds will be classified as HOME Match.
(B) For Direct Loan funded Developments, unless otherwise
identified by the provisions in the NOFA or other funding document,
TCAP RF and matching contributions on HOME, NSP, and NHTF Developments,
must meet all criteria to be classified as HOME-Match Eligible Units.
The amount of Match required will be published in the NOFA or other
funding document.
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