| (e) Any costs not identified and discussed in sufficient
detail in the SCR as part of subsection (d)(6), (d)(8)(A) and (d)(8)(B)
of this section will not be included in the underwritten Total Development
Cost in the Report.
(f) If a copy of such standards or a sample report
have been provided for the Department's review, if such standards
are widely used, and if all other criteria and requirements described
in this section are satisfied, the Department will also accept copies
of reports commissioned or required by the primary lender for a proposed
transaction, which have been prepared in accordance with:
(1) Fannie Mae's criteria for Physical Needs Assessments;
(2) Federal Housing Administration's criteria for Project
Capital Needs Assessments;
(3) Freddie Mac's guidelines for Engineering and Property
Condition Reports; and
(4) USDA guidelines for Capital Needs Assessment.
(g) The Department may consider for acceptance reports
prepared according to other standards which are not specifically named
in this section, if a copy of such standards or a sample report have
been provided for the Department's review, if such standards are widely
used, and if all other criteria and requirements described in this
section are satisfied.
(h) The SCR shall be conducted by a Third Party at
the expense of the Applicant, and addressed to Texas Department of
Housing and Community Affairs as the client. Copies of reports provided
to the Department which were commissioned by other financial institutions
should address Texas Department of Housing and Community Affairs as
a co-recipient of the report, or letters from both the provider and
the recipient of the report should be submitted extending reliance
on the report to Texas Department of Housing and Community Affairs.
(i) The SCR report must include a statement that the
individual or company preparing the SCR report will not materially
benefit from the Development in any other way than receiving a fee
for performing the SCR. Because of the Department's heavy reliance
on the independent cost information, the provider must not be a Related
Party to or an Affiliate of any other Development Team member. The
SCR report must contain a statement indicating the report preparer
has read and understood the requirements of this section.
(j) Scope of Work Narrative. For Tax-Exempt Bond Developments
that do not include a request for Direct Loan or where the Department
is not the bond issuer, a Scope and Cost Review prepared by a Third
Party is not required. The application must provide a Scope of Work
Narrative, consisting of:
(1) A detailed description of the current conditions
of all major systems and components of the Development regardless
of whether the system or component will be removed, repaired or replaced;
(2) For historic structures, a description of each
aspect of the building(s) that qualifies it as historic, including
a narrative explaining how the scope of work relates to maintaining
the historic designation of the Development; and
(3) a narrative of the consolidated scope of work for
the proposed rehabilitation for each major system and components.
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