|(a) An Administrator must be certified prior to execution
of a loan origination agreement or a loan servicing agreement. Administrator
certification expires after three years, after which an Administrator
must apply for recertification.
(b) Initial Certification. Initial certification for
entities must meet all of the criteria listed in subsections (d) -
(n) of this section.
(c) Recertification. Recertification for loan origination
requires that an Administrator be in good standing with the Department.
Submission of the criteria listed subsections (d) - (j) of this section
is only required if any changes have occurred. Recertification for
the purposes of loan servicing activities requires that the Administrator
be in good standing with the Department and that they complete an
annual recertification to the loan servicing agreement.
(d) An Application for certification or recertification
must be submitted in the format required by the Department.
(e) If the Applicant is a Nonprofit Organization, Applicant
(1) The Applicant is registered and in good standing
with Office of the Secretary of State and the State Comptroller's
Office as a nonprofit corporation under the Texas Business Code or
a nonprofit organization under any other state not-for-profit/nonprofit
statute as evidenced by charter or Certificate of Formation;
(2) The net earnings of the Applicant may not inure
to the benefit of any member, founder, contributor, or individual,
as evidenced by charter or Certificate of Formation;
(3) The Applicant has been granted 501(c)(3) tax-exempt
status (by submission of a current letter of determination from the
Internal Revenue Service (IRS) as a charitable, nonprofit corporation
or as a subordinate organization of a central nonprofit corporation
under §501(c)(3) of the Internal Revenue Code of 1986, as evidenced
by a certificate from the IRS dated 1986 or later. The exemption ruling
must be effective on the date of the Application and must continue
to be effective while certified as an Administrator.
(4) The Applicant have among its purposes the provision
of decent housing that is affordable to low and moderate income people
as evidenced by a statement in the organization's charter, Certificate
of Formation, Resolutions, or Bylaws.
(f) The Applicant must conform to the United States
Generally Accepted Accounting Principles (GAAP) as evidenced by a
notarized statement by the Executive Director or chief financial officer
of the organization in a form prescribed by the Department or certification
from a Certified Public Accountant.
(g) If the Applicant proposes to provide interim or
residential construction funds, it must provide an audited financial
statement for the most recent fiscal year or a signed and dated financial
statement for the period since last published audit. If the Applicant
does not have audited financial statements or a signed and dated financial
statement for the period since last published audit must provide a
resolution from the Board of Directors that is signed and dated within
6 months from the date of Application and certifies that the accounting
procedures used by the organization conform to the GAAP. Certified
Administrators that do not have audited financial statements or a
signed and dated financial statement for the period since last published
audit are restricted to only originating permanent loans and will
be ineligible for any interim or residential construction loans, until
the Department has reviewed the most current audited financial statements.
(h) The Applicant must demonstrate capacity for carrying
out Mortgage Loan origination and self-help housing construction Activities,
as evidenced by resumes or statements that describe the experience
of key staff members who have successfully completed projects similar
to those to be assisted with Texas Bootstrap Loan Program funds; or
contract(s) with consultant firms or individuals who have housing
experience similar to projects to be assisted with Texas Bootstrap
Loan Program funds, to train appropriate key staff of the organization.
(i) Religious or Faith-based Organizations (RFOs) may
sponsor an Applicant if the Applicant meets all the requirements of
this section. While the governing board of an Applicant sponsored
by a religious or a faith-based organization remains subject to all
other requirements in this section, the RFO may retain control over
appointments to the board. Additionally, RFOs must comply with the
(1) Housing developed must be made available exclusively
for the residential use of Program beneficiaries, and must be made
available to all persons regardless of religious affiliations or beliefs;
(2) Texas Bootstrap Loan Program funds may never be
used to support any explicitly religious activities such as worship,
religious instruction, or proselytizing; and
(3) Compliance with paragraphs (1) and (2) of this
subsection must be evidenced by the Bylaws, charter or Certificate
(j) Program Design. The Applicant must have policies
for how the Owner-Builders participating in its Program will meet
the self-help requirements.
(k) The Applicant must provide to the Department the
number of houses they are proposing to build, type of proposed financing
structure and construction timelines, to evidence its ability to carry
out the Program.
(l) The Applicant must provide copies of Program guidelines
and homebuyer course curriculum to evidence its experience in qualifying
potential Owner-Builders and in providing education classes, counseling
(m) The Applicant must be in compliance with 10 TAC §1.403,
(relating to Single Audit Requirements), and 10 TAC §20.8, (relating
to Fair Housing, Affirmative Marketing and Reasonable Accommodations)
at the time of Application.
(n) The Applicant must be in compliance with any existing
Contracts awarded by the Department and is subject to the Department's
Previous Participation Review process provided for in 10 TAC §1.302
(relating to Previous Participation Reviews for Department Program
Awards Not Covered by §1.301 of this Subchapter) and §1.303
(relating to Executive Award and Review Advisory Committee (EARAC)
of this title.