| (2) Ownership transfer information, including but not
limited to the type of sale, terms of any new financing introduced
as a result of the transfer, amount of Development reserves to transfer
in the event of a property sale, and the prospective closing date;
(3) Pre and post transfer organizational charts with
TINs of each organization down to the level of natural persons in
the ownership structure as described in §11.204(12)(B) of Subchapter
C of this title (relating to Required Documentation for Application
Submission);
(4) A list of the names and contact information for
transferees and Related Parties;
(5) Previous Participation information for any new
Principal as described in §11.204(12)(C) of this title (relating
to Required Documentation for Application Submission);
(6) Agreements among parties associated with the transfer;
(7) Owners Certifications with regard to materials
submitted as further described in the Post Award Activities Manual;
(8) Detailed information describing the organizational
structure, experience, and financial capacity of any party holding
a controlling interest in any Principal or Controlling entity of the
prospective Development Owner;
(9) Evidence and certification that the tenants in
the Development have been notified in writing of the proposed transfer
at least 30 calendar days prior to the date the transfer is approved
by the Department. The ownership transfer approval letter will not
be issued until this 30-day period has expired; and
(10) Any required exhibits and the list of exhibits
related to specific circumstances of transfer or Ownership as detailed
in the Post Award Activities Manual.
(i) Once the Department receives all necessary information
under this section and as required under the Post Award Activities
Manual, staff shall initiate a qualifications review of a transferee,
in accordance with Chapter 1, Subchapter C of this title (relating
to Previous Participation and Executive Award Review and Advisory
Committee), to determine the transferee's past compliance with all
aspects of the Department's programs, LURAs and eligibility under
this chapter and §11.202 of this title (relating to Ineligible
Applicants and Applications).
(j) Credit Limitation. As it relates to the Housing
Tax Credit amount further described in §11.4(a) of this title
(relating to Tax Credit Request and Award Limits), the credit amount
will not be applied in circumstances described in paragraphs (1) and
(2) of this subsection:
(1) In cases of transfers in which the syndicator,
investor or limited partner is taking over ownership of the Development
and not merely replacing the general partner; or
(2) In cases where the general partner is being replaced
if the award of credits was made at least five years prior to the
transfer request date.
(k) Penalties, Past Due Fees and Underfunded Reserves.
The Development Owner must comply with any additional documentation
requirements as stated in Subchapter F of this chapter (relating to
Compliance Monitoring) and Subchapter G of this chapter (relating
to Affirmative Marketing Requirements and Written Policies and Procedures).
The Development Owner on record with the Department will be liable
for any penalties or fees imposed by the Department (even if such
penalty can be attributable to the new Development Owner) unless an
ownership transfer has been approved by the Department. In the event
a transferring Development has a history of uncorrected UPCS or NSPIRE
violations, ongoing issues related to keeping housing sanitary, safe,
and decent, an account balance below the annual reserve deposit amount
as specified in §10.404(a) (relating to Replacement Reserve Accounts),
or that appears insufficient to meet capital expenditure needs as
indicated by the number or cost of repairs included in a PNA or SCR,
the prospective Development Owner may be required to establish and
maintain a replacement reserve account or increase the amount of regular
deposits to the replacement reserve account by entering into a Reserve
Agreement with the Department. The Department may also request a plan
and timeline relating to needed repairs or renovations that will be
completed by the departing and/or incoming Owner as a condition to
approving the Transfer. A PNA or SCR may be requested if one has not
already been received under §10.404 of this section (relating
to Reserve Accounts).
(l) Ownership Transfer Processing Fee. The ownership
transfer request must be accompanied by the corresponding ownership
transfer fee as outlined in §11.901 of this title (relating to
Fee Schedule).
|
| Source Note: The provisions of this §10.406 adopted to be effective February 3, 2022, 47 TexReg 266; amended to be effective February 1, 2023, 48 TexReg 348; amended to be effective February 27, 2024, 49 TexReg 1054 |
