| (101) Pro Forma Rent--For a restricted Unit, the lesser
of the Net Program Rent or the Market Rent. For an unrestricted Unit,
the Market Rent. Contract Rents, if applicable, will be used as the
Pro Forma Rent.
(102) Property--The real estate and all improvements
thereon which are the subject of the Application (including all items
of personal property affixed or related thereto), whether currently
existing or proposed to be built or rehabilitated thereon in connection
with the Application.
(103) Qualified Census Tract (QCT)--those tracts designated
as such by the U.S. Department of Housing and Urban Development.
(104) Qualified Contract (QC)--A bona fide contract
to acquire the non-low-income portion of the building for fair market
value and the low-income portion of the building for an amount not
less than the Applicable Fraction (specified in the LURA) of the calculation
as defined within §42(h)(6)(F) of the Code.
(105) Qualified Contract Price (QC Price)--Calculated
purchase price of the Development as defined within Code, §42(h)(6)(F)
and as further delineated in §10.408 of this title (relating
to Qualified Contract Requirements).
(106) Qualified Contract Request (Request)--A request
containing all information and items required by the Department relating
to a Qualified Contract.
(107) Qualified Entity--Any entity permitted under
Code, §42(i)(7)(A) and any entity controlled by such a qualified
entity.
(108) Qualified Nonprofit Development--A Development
which meets the requirements of Code, §42(h)(5), includes the
required involvement of a Qualified Nonprofit Organization, and is
seeking Competitive Housing Tax Credits.
(109) Qualified Nonprofit Organization--An organization
that meets the requirements of Code §42(h)(5)(C) for all purposes,
and for an allocation in the nonprofit set-aside or subsequent transfer
of the property, when applicable, meets the requirements of Tex. Gov't
Code §2306.6706, and §2306.6729, and Code, §42(h)(5),
including having a Controlling interest in the Development.
(110) Reconstruction--The demolition of one or more
residential buildings in an Existing Residential Development and the
construction of Units on the same or another Development Site. At
least one Unit must be reconstructed in order to qualify as Reconstruction.
The total number of Units to be reconstructed will be determined by
program requirements. Developments using Multifamily Direct Loan funds
are required to follow the applicable federal requirements.
(111) Rehabilitation--The improvement or modification
of an Existing Residential Development through alteration, incidental
addition, or enhancement. The term includes the demolition of an Existing
Residential Development and the Reconstruction of any Development
Units on the Development Site, but does not include Adaptive Reuse.
(§2306.004(26-a)) Reconstructed Units will be considered New
Construction for purposes of calculating the Replacement Reserves
under §11.302(d)(2)(I) (relating to Operating Feasibility). More
specifically, Rehabilitation is the repair, refurbishment, or replacement
of existing mechanical or structural components, fixtures, and finishes.
Rehabilitation will correct deferred maintenance, reduce functional
obsolescence to the extent possible, and may include the addition
of: energy efficient components and appliances; life and safety systems;
site and resident amenities; and other quality of life improvements
typical of new residential Developments.
(112) Relevant Supply--The supply of Comparable Units
in proposed and Unstabilized Developments targeting the same population
including:
(A) The proposed subject Units; and
(B) Comparable Units in previously approved but Unstabilized
Developments in the PMA.
(113) Report--See Underwriting Report.
(114) Request--See Qualified Contract Request.
(115) Reserve Account--An individual account:
(A) Created to fund any necessary repairs or other
needs for a Development; and
(B) Maintained by a First Lien Lender or Bank Trustee.
(116) Right of First Refusal (ROFR)--An Agreement to
provide a series of priority rights to negotiate for the purchase
of a Property by a Qualified Entity or a Qualified Nonprofit Organization
at a negotiated price at or above the minimum purchase price as defined
in Code §42(i)(7) or as established in accordance with an applicable
LURA.
(117) Rural Area--
(A) A Place that is located:
(i) outside the boundaries of a primary metropolitan
statistical area or a metropolitan statistical area;
(ii) within the boundaries of a primary metropolitan
statistical area or a metropolitan statistical area, if the statistical
area has a population of 25,000 or less and does not share a boundary
with an Urban Area; or
(iii) within the boundaries of a local political subdivision
that is outside the boundaries of an Urban Area.
(B) For areas not meeting the definition of a Place,
the designation as a Rural Area or Urban Area is assigned in accordance
with §11.204(5)(A) of this chapter (relating to Required Documentation
for Application Submission) or as requested in accordance with §11.204(5)(B)
of this chapter.
(118) Scope and Cost Review (SCR)--Sometimes referred
to as "Physical Needs Assessment," "Project Capital Needs Assessment,"
or "Property Condition Report." The SCR provides an evaluation of
the physical condition of an existing Property to evaluate the immediate
cost to rehabilitate and to determine costs of future capital improvements
to maintain the Property. The SCR must be prepared in accordance with §11.306
of this chapter (relating to Scope and Cost Review Guidelines), as
it relates to a specific Development.
(119) Scoring Notice--Notification provided to an Applicant
of the score for their Application after staff review. More than one
Scoring Notice may be issued for a Competitive HTC or a Direct Loan
Application.
(120) Single Room Occupancy (SRO)--An Efficiency Unit
that meets all the requirements of a Unit except that it may, but
is not required, to be rented on a month to month basis to facilitate
Transitional Housing. Buildings with SRO Units have extensive living
areas in common and are required to be Supportive Housing and include
the provision for substantial supports from the Development Owner
or its agent on site.
(121) Site Control--Ownership or a current contract
or series of contracts that meets the requirements of §11.204(9)
of this chapter, that is legally enforceable giving the Applicant
the ability, not subject to any legal defense by the Owner or anyone
else, to develop and operate a Property and subject it to a LURA reflecting
the requirements of any awards of assistance it may receive from the
Department.
(122) Site Work--Materials and labor for the horizontal
construction generally including excavation, grading, paving, underground
utilities, and site amenities.
(123) State Housing Credit Ceiling--The aggregate amount
of Competitive Housing Credit Allocations that may be made by the
Department during any calendar year, as determined from time to time
by the Department in accordance with applicable federal law, including
Code, §42(h)(3)(C), and Treasury Regulation §1.42-14.
(124) Sub-Market--An area defined by the Underwriter
based on general overall market segmentation promulgated by market
data tracking and reporting services from which a proposed or existing
Development is most likely to draw the majority of its prospective
tenants or homebuyers.
(125) Supportive Housing--A residential rental Development
and Target Population meeting the requirements of subparagraphs (A)
- (F) of this paragraph:
(A) Be intended for and targeting occupancy for households
in need of specialized and specific non- medical services in order
to maintain housing or transition into independent living;
(B) Be owned and operated by an Applicant or General
Partner that must:
(i) have supportive services provided by the Applicant,
an Affiliate of the Applicant, or a Third Party provider if the service
provider is able to demonstrate a record of providing substantive
services similar to those proposed in the Application in residential
settings for at least three years prior to the beginning of the Application
Acceptance Period, or Application Acceptance Date for Multifamily
Direct Loan Applications;
(ii) secure sufficient funds necessary to maintain
the Supportive Housing Development's operations throughout the entire
Affordability Period;
(iii) provide evidence of a history of fundraising
activities reasonably deemed to be sufficient to address any unanticipated
operating losses;
Cont'd... |
