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RULE §10.1003Tax Exempt Bond Developments

(a) Tax Exempt Bond Developments must use the Multifamily Tax Subsidy Program (MTSP) income limits released by HUD, generally, on an annual basis. The MTSP limit tables include:

  (1) The 50% and 60% Area Median Gross Income (AMGI) by household size.

  (2) In areas where the income limits did not decrease in 2007 and 2008 because of HUD's hold harmless policy, a HERA Special 50% and HERA Special 60% income limit by household size. These higher limits can only be used if at least one building in the Project was placed in service on or before December 31, 2008.

(b) If HUD releases a 20%, 30%, 40%, 60%, 70% or 80% income limit in the MTSP charts the Department will make that data available without any calculations. Otherwise, the following methodology will be used, without rounding, to determine additional income limits:

  (1) To calculate the 20% AMGI, the 50% AMGI limit will be multiplied by .40 or 40%.

  (2) To calculate the 30% AMGI, the 50% AMGI limit will be multiplied by .60 or 60%.

  (3) To calculate the 40% AMGI, the 50% AMGI limit will be multiplied by .80 or 80%.

  (4) To calculate the 60% AMGI, the 50% AMGI limit will be multiplied by 1.2 or 120%.

  (5) To calculate the 70% AMGI, the 50% AMGI limit will be multiplied by 1.4 or 140%.

  (6) To calculate the 80% AMGI, the 50% AMGI limit will be multiplied by 1.6 or 160%.

(c) The Land Use Restriction Agreement (LURA) for some, but not all, Tax Exempt Bond properties restricts the amount of rent the Development Owner is permitted to charge. If the LURA restricts rents, rent limits will be calculated in accordance with §10.1004(d) of this subchapter (relating to Housing Tax Credit Properties, TCAP, Exchange and HTF).

(d) Tax Exempt Bond LURAs are hereby amended to be consistent with this section.

(e) The Department will make available a memorandum in a recordable form reflecting the applicable rent limits in accordance with this section and the legal description of the affected property. The owner of the property will bear any costs associated with recording such memorandum in the real property records for the county in which the property is located.

(f) Nothing in this section prevents a Development Owner from pursuing a Material Amendment to their LURA in accordance with the procedures found in §10.405 of this chapter (relating to Amendments and Extensions).

Source Note: The provisions of this §10.1003 adopted to be effective July 29, 2019, 44 TexReg 3801

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