(a) Authority. The rules in this chapter apply to the
issuance of multifamily housing revenue bonds, notes, or other evidences
of indebtedness (Bonds) by the Texas Department of Housing and Community
Affairs (Department). The Department is authorized to issue Bonds
pursuant to Tex. Gov't Code, Chapter 2306. Notwithstanding anything
in this chapter to the contrary, Bonds which are issued to finance
the Development of multifamily rental housing are subject to the requirements
of the laws of the State of Texas, including but not limited to Tex.
Gov't Code, Chapters 1372 and 2306, and federal law pursuant to the
requirements of Internal Revenue Code (Code), §142.
(b) General. The purpose of this chapter is to state
the Department's requirements for issuing Bonds, the procedures for
applying for Bonds and the regulatory and land use restrictions imposed
upon Bond financed Developments. The provisions contained in this
chapter are separate from the rules relating to the Department's administration
of the Housing Tax Credit program. Applicants seeking a Housing Tax
Credit Allocation should consult Chapter 11 of this part (relating
to the Housing Tax Credit Program Qualified Allocation Plan) for the
current program year. In general, the Applicant will be required to
satisfy the eligibility and threshold requirements of the Qualified
Allocation Plan (QAP) in effect at the time the Certificate of Reservation
is issued by the Texas Bond Review Board (TBRB). If the applicable
QAP contradicts rules set forth in this chapter, the applicable QAP
will take precedence over the rules in this chapter except in an instance
of a conflicting statutory requirement, which shall always take precedence.
To the extent applicable to each specific Bond issuance, the Department's
conduit multifamily Bond transactions will be processed in accordance
with 34 TAC Part 9, Chapter 181, Subchapter A (relating to Bond Review
Board Rules) and Tex. Gov't Code, Chapter 1372.
(c) Costs of Issuance. The Applicant shall be responsible
for payment of all costs related to the preparation and submission
of the pre-application and Application, including but not limited
to, costs associated with the publication and posting of required
public notices and all costs and expenses associated with the issuance
of the Bonds, regardless of whether the Application is ultimately
approved or whether Bonds are ultimately issued. At any point during
the process, the Applicant is solely responsible for determining whether
to proceed with the Application and the Department disclaims any and
all responsibility and liability in this regard.
(d) Taxable Bonds. The Department may issue taxable
Bonds and the requirements associated with such Bonds, including occupancy
requirements, shall be determined by the Department on a case by case
basis. Taxable bonds will not be eligible for an allocation of tax
credits.
(e) Waivers and Appeals. Requests for any permitted
waivers of program rules must be made in accordance with §11.207
of this part (relating to Waiver of Rules). The process for appeals
and grounds for appeals may be found under §1.7 of this part
(relating to Appeals Process).
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