| (II) For scoring items that are predicated solely on
third-party data, characteristics inherent to the proposed Development
Site, or are otherwise not influenced by the actions of the Applicant,
the Application's eligibility for these points can be clearly established
to have existed prior to the Full Application Delivery Date (Competitive
HTC) or the Application Acceptance Date (Direct Loan), and the submission
of the documents does not necessitate additional changes in the Application
to qualify for the points.
(ii) Inconsistencies that exist between facts presented
in the Application and/or its supporting documentation. A discrepancy
between the requested points and the points supported by the Application
will not be treated as an inconsistency if the facts presented within
the Application are otherwise consistent.
(iii) At the Department's sole discretion, additional
information that is necessary to assist in the review of the Application.
(B) The following issues will not be treated by Department
staff as Administrative Deficiencies that are curable through the
Deficiency process:
(i) Any matter that will materially change the Application,
except for matters that must be addressed in accordance with 10 TAC §11.1(d)
(relating to the definition of Administrative Deficiency), in which
case staff will direct the Applicant to resolve the inconsistency
in the manner that creates the least change within the Application.
Under no circumstance can the resolution of an Administrative Deficiency
increase the Application's score from what was initially requested.
(ii) Changes to the Application that are submitted
only to qualify for points claimed in the Application.
(iii) Except at staff's written request, changes to
the Application that alter the amount of Housing Tax Credits or Direct
Loan requested.
(C) In all cases, final determinations regarding the
sufficiency of documentation submitted to cure a Deficiency as well
as the distinction between material and non-material missing information
are reserved for the Department Staff and Board.
(3) Affiliate--An individual, corporation, partnership,
joint venture, limited liability company, trust, estate, association,
cooperative, or other organization or entity of any nature whatsoever
that directly, or indirectly through one or more intermediaries, has
Control of, is Controlled by, or is under common Control with any
other Person. All entities that share a Principal are Affiliates.
(4) Affordability Period--The Affordability Period
commences as specified in the Land Use Restriction Agreement (LURA)
or federal regulation, or commences on the first day of the Compliance
Period as defined by the Code §42(i)(1), and continues through
the appropriate program's affordability requirements or termination
of the LURA, whichever is earlier. The term of the Affordability Period
shall be imposed by the LURA or other deed restriction, and in some
circumstances may be terminated upon foreclosure or deed in lieu of
foreclosure. The Department reserves the right to extend the Affordability
Period for Developments that fail to meet program requirements. During
the Affordability Period, the Department shall monitor to ensure compliance
with programmatic rules, as applicable, regulations, and Application
representations.
(5) Applicable Percentage--The percentage used to determine
the amount of the Housing Tax Credit for any Development, as defined
more fully in Code, §42(b).
(A) For purposes of the Application, the Applicable
Percentage will be:
(i) nine percent for 70% present value credits; or
(ii) four percent for 30% present value credits.
(B) For purposes of making a credit recommendation
at any other time, the Applicable Percentage will be based on:
(i) the percentage indicated in the Agreement and Election
Statement, if executed; or
(ii) the percentage as calculated in subparagraph (A)
of this paragraph if the Agreement and Election Statement has not
been executed and no buildings have been placed in service.
(6) Applicant--Any Person or a group of Persons and
any Affiliates of those Persons who file an Application with the Department
requesting funding or a tax credit allocation subject to the requirements
of this chapter or Chapters 12 or 13 of this title and who have undertaken
or may contemplate the later formation of one or more business entities,
such as a limited partnership, that is to be engaged in the ownership
of a Development.
(7) Application Acceptance Period--That period of time
during which Applications may be submitted to the Department. For
Tax-Exempt Bond Developments it is the date the Application is submitted
to the Department.
(8) Award Letter --A document that may be issued to
an awardee of a Direct Loan before the issuance of a Contract which
preliminarily sets forth the terms and conditions under which the
Direct Loan will be made available. An Award Letter will typically
be contingent on the awardee satisfying certain requirements prior
to executing a Contract.
(9) Bank Trustee--A federally insured bank with the
ability to exercise trust powers in the State of Texas.
(10) Bedroom--A portion of a Unit which is no less
than 100 square feet; has no width or length less than eight feet;
is self-contained with a door (or the Unit contains a second level
sleeping area of 100 square feet or more); has at least one window
that provides exterior access; and has at least one closet that is
not less than two feet deep and three feet wide and high enough to
accommodate five feet of hanging space. A den, study, or other similar
space that could reasonably function as a Bedroom and meets this definition
is considered a Bedroom. Rehabilitation (excluding Reconstruction)
Developments in which Unit configurations are not being altered will
be exempt from the bedroom and closet width, length, and square footage
requirements. Supportive Housing Developments will be exempt from
the bedroom and closet width, length, and square footage requirements.
(11) Breakeven Occupancy--The occupancy level at which
rental income plus secondary income is equal to all operating expenses,
including replacement reserves and taxes, and mandatory debt service
requirements for a Development.
(12) Building Costs--Cost of the materials and labor
for the vertical construction or rehabilitation of buildings and amenity
structures.
(13) Carryover Allocation--An allocation of current
year tax credit authority by the Department pursuant to the provisions
of the Code, §42(h)(1)(C) and U.S. Treasury Regulations, §1.42-6.
(14) Carryover Allocation Agreement--A document issued
by the Department, and executed by the Development Owner, pursuant
to §11.907 of this title (relating to Carryover Agreement General
Requirements and Required Documentation).
(15) Cash Flow--The funds available from operations
after all expenses and debt service required to be paid have been
considered.
(16) Certificate of Reservation or Traditional Carryforward
Designation--The notice given by the Texas Bond Review Board (TBRB)
to an issuer reserving a specific amount of the private activity bond
state ceiling for a specific Development.
(17) Code--The Internal Revenue Code of 1986, as amended
from time to time, together with any applicable regulations, rules,
rulings, revenue procedures, information statements, or other official
pronouncements issued thereunder by the U.S. Department of the Treasury
or the Internal Revenue Service (IRS).
(18) Code of Federal Regulations (CFR)--The codification
of the general and permanent rules and regulations of the federal
government as adopted and published in the Federal Register.
(19) Commitment Notice (also referred to as Commitment)--An
agreement issued pursuant to §11.905(a) of this title (relating
to General Information for Commitments or Determination Notices),
setting forth the terms and conditions under which Competitive Housing
Tax Credits from the Department will be made available. A Commitment
or Commitment Notice does not mean commitment of federal funds under
the Direct Loan Program.
(20) Commitment of Funds--Occurs after the Development
is approved by the Board and once a Contract is executed between the
Department and Development Owner. The Department's Commitment of Funds
may not align with commitments made by other financing parties.
(21) Common Area--Enclosed space outside of Net Rentable
Area, whether conditioned or unconditioned, to include such area contained
in: property management offices, resident service offices, 24-hour
front desk office, clubrooms, lounges, community kitchens, community
restrooms, exercise rooms, laundry rooms, mailbox areas, food pantry,
meeting rooms, libraries, computer labs, classrooms, break rooms,
flex space programmed for resident use, interior corridors, common
porches and patios, and interior courtyards. Common Area does not
include individualized garages, maintenance areas, equipment rooms,
or storage.
Cont'd... |
