| (a) If a Development's LURA requires the material participation
of a non-profit or Historically Underutilized Business (HUB), the
Department will confirm whether this requirement is being met. Owners
are required to maintain sufficient documentation to evidence that
a non-profit or HUB so participating is in good standing with the
Texas Comptroller of Public Accounts, Texas Secretary of State and/or
IRS as applicable and that it is actually materially participating
in a manner that meets the requirements of the IRS. Documentation
may be reviewed during onsite visits or must be submitted to the Department
upon request.
(b) If the HOME funds were awarded from the Community
Housing and Development Organization (CHDO) set aside on or after
August 23, 2013, the Department will monitor that the Development
remains controlled by a CHDO throughout the federal affordability
period.
(c) If an Owner wishes to change the participating
non-profit, HUB, or CHDO, prior written approval from the Department
is necessary. In addition, the IRS will be notified if the non-profit
is not materially participating on an HTC Development during the Compliance
Period.
(d) The Department does not enforce partnership agreements
or other agreements between third parties or determine fund distributions
of partnerships. These disputes are matters for a court of competent
jurisdiction or other agreed resolution among the parties.
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