| (a) Application Submission. Once the inducement resolution
has been approved by the Board, an Applicant who elects to proceed
with submitting a full Application to the Department must submit the
complete tax credit Application pursuant to §11.201 of this part
(relating to Procedural Requirements for Application Submission).
While a Certificate of Reservation is required under §11.201
of this part (relating to Procedural Requirements for Application
Submission) prior to submission of the complete tax credit Application,
staff may allow the Application to be submitted prior to the issuance
of a Certificate of Reservation depending on circumstances associated
with the Development Site, structure of the transaction, volume cap
environment, or other factors in the Department's sole discretion.
(b) Eligibility Criteria. The Department will evaluate
the Application for eligibility and threshold at the time of full
Application pursuant to Chapter 11 of this part (relating to Housing
Tax Credit Program Qualified Allocation Plan). If there are changes
to the Application at any point prior to closing that have an adverse
effect on the score and ranking order and that would have resulted
in the pre-application being placed below another pre-application
in the ranking, the Department may terminate the Application and withdraw
the Certificate of Reservation from the Bond Review Board (with the
exception of changes to deferred developer's fees and support or opposition
points). The Development and the Applicant must satisfy the requirements
set forth in Chapter 11 of this part in addition to Tex. Gov't Code,
Chapter 1372, the applicable requirements of Tex. Gov't Code Chapter
2306, and the Code. The Applicant will also be required to select
a Bond Trustee from the Department's approved list as published on
its website.
(c) Bond Documents. Once the Application has been submitted
and the Applicant has deposited funds to pay initial costs, the Department's
bond counsel shall draft Bond documents.
(d) Public Hearings. The Department will hold a public
hearing to receive comments pertaining to the Development and the
issuance of the Bonds. A representative of the Applicant or member
of the Development Team must be present at the public hearing and
will be responsible for conducting a brief presentation on the proposed
Development and providing handouts at the hearing that should include
at minimum, a description of the Development, maximum rents and income
restrictions. If the proposed Development is Rehabilitation, the presentation
should include the proposed scope of work that is planned for the
Development. The handouts must be submitted to the Department for
review at least two days prior to the public hearing. Publication
of all notices required for the public hearing shall be at the sole
expense of the Applicant, as well as any facility rental fees or required
deposits, if applicable.
(e) Approval of the Bonds. Subject to the timely receipt
and approval of commitments for financing, an acceptable evaluation
for eligibility, financial feasibility, the satisfactory negotiation
of Bond documents, and the completion of a public hearing, the Board
will consider the approval of the final Bond resolution relating to
the issuance, substantially final Bond documents and in the instance
of privately placed Bonds, the pricing, terms and interest rate of
the Bonds. For Applications that include local funding, Department
staff may choose to delay Board consideration of the Bond issuance
until such time it has been confirmed that the amount or terms associated
with such local funding will not change and remain consistent with
what was represented in the Department's underwriting analysis.
(f) Local Permits. Prior to closing on the Bond financing,
all necessary approvals, including building permits from local municipalities,
counties, or other jurisdictions with authority over the Development
Site must have been obtained or evidence that the permits are obtainable
subject only to payment of certain fees. In instances where such permits
will be not received prior to bond closing, the Department may, on
a limited and case-by-case basis allow for the closing to occur, subject
to receipt of confirmation, acceptable to the Department, by the lender
and/or equity investor that they are comfortable proceeding with closing.
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