| (iv) after due consideration of the information provided
by the Applicant and public comment, the Governing Body does not object
to the proposed Application.
(5) Designation as Rural or Urban.
(A) Each Application must identify whether the Development
Site is located in an Urban Area or Rural Area of a Uniform State
Service Region. The Department shall make available a list of Places
meeting the requirements of Tex. Gov't Code §2306.004(28-a)(A)
and (B), for designation as a Rural Area and those that are an Urban
Area in the Site Demographics Characteristics Report. Some Places
are municipalities. For any Development Site located in the ETJ of
a municipality and not in a Place, the Application shall have the
Rural Area or Urban Area designation of the municipality whose ETJ
within which the Development Site is located. For any Development
Site not located within the boundaries of a Place or the ETJ of a
municipality, the applicable designation is that of the closest Place.
(B) Certain areas located within the boundaries of
a primary metropolitan statistical area or a metropolitan statistical
area can request a Rural designation from the Department for purposes
of receiving an allocation Housing Tax Credits (§2306.6740).
In order to apply for such a designation, a letter must be submitted
from a duly authorized official of the political subdivision or census
designated place addressing the factors outlined in clauses (i) -
(vi) of this subparagraph. Photographs and other supporting documentation
are strongly encouraged. In order for the area to be designated Rural
by the Department for the current Application Round, such requests
must be made no later than December 15 of the previous year. If staff
is able to confirm the findings outlined in the request, the Rural
designation will be granted without further action and will remain
in effect until such time that the population as described in clause
(i) of this subparagraph exceeds 25,000. In the event that staff is
unable to confirm the information contained in the request, the Applicant
will be given an opportunity to supplement their case. If, after receiving
any supplemental information, staff still cannot confirm the rural
nature of the Application, a recommendation for denial will be presented
to the Board. The factors include:
(i) the population of the political subdivision or
census designated place does not exceed 25,000;
(ii) the characteristics of the political subdivision
or census designated place and how those differ from the characteristics
of the area(s) with which it shares a contiguous boundary;
(iii) the percentage of the total border of the political
subdivision or census designated place that is contiguous with other
political subdivisions or census designated places designated as urban.
For purposes of this assessment, less than 50% contiguity with urban
designated places is presumptively rural in nature;
(iv) the political subdivision or census designated
place contains a significant number of unimproved roads or relies
on unimproved roads to connect it to other places;
(v) the political subdivision or census designated
place lacks major amenities commonly associated with urban or suburban
areas; and
(vi) the boundaries of the political subdivision or
census designated place contain, or are surrounded by, significant
areas of undeveloped or agricultural land. For purposes of this assessment,
significant being more than one-third of the total surface area of
political subdivision/census designated place, or a minimum of 1,000
acres immediately contiguous to the border.
(6) Financing Requirements.
(A) Non-Department Debt Financing. Interim and permanent
financing sufficient to fund the proposed Total Housing Development
Cost less any other funds requested from the Department must be included
in the Application. For any Development that is a part of a larger
development plan on the same site, the Department may request and
evaluate information related to the other components of the development
plan in instances in which the financial viability of the Development
is in whole or in part dependent upon the other portions of the development
plan. Any local, state or federal financing identified in this section
which restricts household incomes at any level that is lower than
restrictions required or elected in accordance with this Chapter or
Chapter 13 of this title (relating to Multifamily Direct Loan) must
be identified in the rent schedule and the local, state or federal
income restrictions must include corresponding rent levels in accordance
with Code §42(g) if the Development will receive housing tax
credits. The income and corresponding rent restrictions that impact
the Units also restricted by the Department will be reflected in the
LURA. Financing amounts must be consistent throughout the Application
and acceptable documentation shall include those described in clauses
(i) - (iv) of this subparagraph.
(i) Financing is in place as evidenced by:
(I) a valid and binding loan agreement; and
(II) a valid recorded deed(s) of trust lien on the
Development in the name of the Development Owner as grantor in favor
of the party providing such financing.
(ii) Term sheets for interim and permanent loans issued
by a lending institution or mortgage company must:
(I) be current, non-expired, and have been signed or
otherwise acknowledged by the lender;
(II) be addressed to the Development Owner or Affiliate;
(III) for a permanent loan, include a minimum loan
term of 15 years with at least a 30 year amortization or for non-amortizing
loan structures a term of not less than 30 years;
(IV) include either a committed and locked interest
rate, or the estimated interest rate;
(V) include all required Guarantors, if known;
(VI) include the principal amount of the loan;
(VII) include an acknowledgement of the amounts and
terms of all other anticipated sources of funds and if the Application
reflects an intent to elect income averaging there must be an acknowledgement
to that effect in the term sheet; and
(VIII) include and address any other material terms
and conditions applicable to the financing. The term sheet may be
conditional upon the completion of specified due diligence by the
lender and upon the award of tax credits, if applicable;
(iii) For Developments proposing to refinance an existing
USDA Section 514, 515, or 516 loan, a letter from the USDA confirming
the outstanding loan balance on a specified date and confirming that
the Preliminary Assessment Tool has been submitted by the Applicant
to USDA. The loan amount that is reported on the Schedule of Sources
(tab 31 in the MF Uniform Application) and that is used to determine
the acquisition cost must be the Applicant's estimate of the projected
outstanding loan balance at the time of closing as calculated on the
USDA Principal Balance Amortization exhibit.
(iv) For Direct Loan Applications or Tax-Exempt Bond
Developments with TDHCA as the issuer that utilize FHA financing,
the Application shall include the applicable pages from the HUD Application
for Multifamily Housing Project. If the HUD Application has not been
submitted at the time the Application is submitted then a statement
to that effect should be included in the Application along with an
estimated date for submission. Applicants should be aware that staff's
underwriting of an Application will not be finalized and presented
to the Board until staff has evaluated the HUD Application relative
to the Application.
(B) Gap Financing. Any anticipated federal, state,
local or private gap financing, whether soft or hard debt, must be
identified and described in the Application. Applicants must provide
evidence that an application for such gap financing has been made
to an available fund source. Acceptable documentation may include
a letter from the funding entity confirming receipt of an application
or a term sheet from the lending agency which clearly describes the
amount and terms of the financing. Other Department funding requested
with Housing Tax Credit Applications must be on a concurrent funding
period with the Housing Tax Credit Application, and no term sheet
is required for such a request. A term loan request must comply with
the applicable terms of the NOFA under which an Applicant is applying.
(C) Owner Contributions. If the Development will be
financed in part with a capital contribution or debt by the General
Partner, Managing General Partner, any other partner or investor that
is not a partner providing the syndication equity, a Guarantor or
a Principal in an amount that exceeds 5% of the Total Housing Development
Cost, a letter from a Third Party CPA must be submitted that verifies
the capacity of the contributor to provide the capital from funds
that are not otherwise committed or pledged. Additionally, a letter
from the contributor's bank(s) or depository(ies) must be submitted
confirming sufficient funds are readily available to the contributor.
The contributor must certify that the funds are and will remain readily
available at Commitment and until the required investment is Cont'd... |
