| (a) All assisted properties must be located in eligible
areas as defined by HUD and by the applicable NOFA.
(b) The Contract term is based upon varying types of
activities included in the Contract between the Department and the
Department's Subgrantee. Exhibit C, Project Implementation Schedule,
of the Contract, provides an outline of specific timelines, milestones
and thresholds. Performance under the Contract will be evaluated according
to the benchmarks described in each Contract.
(c) Administrative Threshold. Administrative draw requests
are funded from the administration or developer fee line item in Exhibit
B, Budget, of the Contract. Reimbursement of eligible administrative
expenses is regulated as described in paragraphs (1) - (3) of this
subsection:
(1) Threshold 1. Cumulative administrative draw requests
may allow up to 10 percent of the administration or developer fee
line item to be drawn prior to the start of any project activity included
in the performance statement of the Contract (provided that all pre-draw
requirements, as described in the Contract, for administration have
been met). This draw may be limited by NOFA, underwriting report,
or by Contract. Subsequent administrative expenditures will be reimbursed
in the percentage amounts indicated, provided that all Contract benchmark
requirements have been met, as identified in Exhibit C, Project Implementation
Schedule, described in subsection (b) of this section;
(2) Threshold 2. Subsequent administrative draw requests
are allowed in proportion to the direct project funds drawn on the
Contract, up to 90 percent of the total administration or developer
fee line item. The cumulative total percentage of administrative funds
requested may not exceed the cumulative total percentage of project
funds expended for hard and/or soft costs directly attributable to
activities under the Contract;
(3) Threshold 3. The final 10 percent of the administration
or developer fee line item is the administrative retainage. The final
10 percent may be drawn after the final loan closing or upon Contract
close-out.
(d) Forbearances. Contract expenditure thresholds and
milestones are included in Exhibit C, Project Implementation Schedule,
of the Contract; violations of which will subject the Subgrantee to
the requirements found in this chapter. At the Department's discretion,
forbearances of thresholds and milestones may be granted upon request
and documentation of extenuating circumstances.
(e) Waivers. Program administrative regulations set
forth in any Texas SFNSP NOFA by the Department's Governing Board
or terms in the Contract may be waived by the Department, acting by
and through its Executive Director or his/her designee, up to the
limits of Texas SFNSP regulations and guidance as previously established,
periodically updated, or updated in the future by HUD. The Executive
Director or his/her designee may waive the Texas SFNSP purchase discount
to the limits of the purchase discount as allowed by the NSP Bridge
Notice. The Texas NSP NOFA and the NSP Federal
Register Notice (Docket No. FR-5255-N-01) published in the Federal Register (73 FR 58330), require
a minimum discount of five percent for any individual property and
15 percent for a portfolio of properties to be acquired utilizing
Texas SFNSP funds. (If only acquiring one property, the one property
constitutes a portfolio.) The NSP Bridge Notice allows for up to a
one percent discount for individual properties and portfolios.
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