| (a) Authority and Purpose. The Executive Director will
make recommendations to the Board regarding funding and allocation
decisions related to Low Income Housing Tax Credits and federal housing
funds provided to the state under the Cranston Gonzalez National Affordable
Housing Act. The Department utilizes this process to consider funding
and allocation recommendations to the Board related to other programs,
and to consider an awardee under the requirements of 2 CFR §200.331(b)
and (c) and TxGMS, which requires that the Department evaluate an
applicant's risk of noncompliance and consider imposing conditions
if appropriate prior to awarding funds for certain applicable programs
and as described in §1.403 of Subchapter D of this chapter (relating
to Single Audit Requirements). It is also the purpose of this rule
to provide for the considerations and processes of award approvals,
and to address actions of the Board relating to the Executive Director's
recommendations. Capitalized terms used in this section herein have
the meaning assigned in the specific chapters and rules of this title
that govern the program associated with the request, or assigned by
federal or state laws.
(b) Award Recommendation Process.
(1) A positive recommendation by the Executive Director
represents a determination that, at the time of the recommendation
and based on available information, the Department has not identified
a rule or statutory-based impediment that would prohibit the Board
from making an award.
(2) A positive recommendation may have conditions placed
on it. Conditions placed on an award will be limited to those conditions
noted in subsection (e) of this section, or as suggested by the Applicant
and agreed upon by the Department.
(3) The Applicant will be notified of proposed conditions.
If the Applicant does not concur with the applicability of one or
more of the conditions, it will be provided an opportunity to dispute
the conditions as described in subsection (g) of this section, regarding
Disputes.
(4) Category 3 applicants that will be recommended
for denial will be notified and informed of their right to dispute
the negative recommendation as described in subsection (g) of this
section, regarding Disputes.
(5) Applications for 4% credits that do not include
other resources from TDHCA and that are only being issued a Determination
Notice are not considered awards for purposes of this rule and do
not require approval by the Executive Director prior to issuance of
such Notice, even if being presented to the Board in relation to public
comment or possible requests for waivers.
(c) Conditions to an award may be placed on a single
Development, a Combined Portfolio, or a portion of a Combined Portfolio
if applicable (e.g., one region of a management company is having
issues, while other areas are not). The conditions listed in subsection
(e) of this section may be customized to provide specificity regarding
affected Developments, Persons or dates for meeting conditions. Category
2 or Category 3 Applications may be awarded with the imposition of
one or more of the conditions listed in subsection (e) of this section.
(d) Possible Conditions.
(1) Applicant/Owner is required to ensure that each
Person subject to previous participation review for the Combined Portfolio
will correct all applicable issues of non-compliance identified by
the previous participation review on or before a specified date and
provide the Department with evidence of such correction within 30
calendar days of that date.
(2) Owner is required to have qualified personnel or
a qualified third party perform a one-time review of an agreed upon
percentage of files and complete the recommended actions of the reviewer
on or before a specified deadline for an agreed upon list of Developments.
Evidence of reviews and corrections must be submitted to the Department
upon request.
(3) The Applicant or the management company contracted
by the Applicant is required to prepare or update its internal procedures
to improve compliance outcomes and to provide copies of such new or
updated procedures to the Department upon request or by a specified
date.
(4) Owner agrees to hire a third party to perform reviews
of an agreed upon percentage of their resident files on a quarterly
basis, and complete the recommended actions of the reviewer for an
agreed upon list of Developments. Evidence of reviews and corrections
must be submitted to the Department upon request.
(5) Owner is required to designate a person or persons
to receive Compliance correspondence and ensure that this person or
persons will provide timely responses to the Department for and on
behalf of the proposed Development and all other Development subject
to TDHCA LURAs over which the Owner has the power to exercise Control.
(6) Owner agrees to replace the existing management
company, consultant, or management personnel, with another of its
choosing.
(7) Owner agrees to establish an email distribution
group in CMTS (or other Department required system), to be kept in
place until no later than a given date, and include agreed upon employee
positions and/or designated Applicant members.
(8) Owner is required to revise or develop policies
regarding the way that it will handle situations where persons under
its control engage in falsification of documents. This policy must
be submitted to TDHCA on or before a specified date and revised as
required by the Department.
(9) Owner or Subrecipient is required to ensure that
agreed upon persons attend and/or review the trainings listed in subparagraphs
(A), (B), (C) and/or (D) of this paragraph (only for Applications
made and reviewed under §1.301 of this subchapter (relating to
Definitions and Previous Participation Reviews for Multifamily Awards
and Ownership Transfers)) and/or (E) for applications made and reviewed
under §1.302 of this subchapter (relating to Previous Participation
Reviews for Department Program Awards Not Covered by §1.301 of
this Subchapter) and provide TDHCA with certification of attendance
or completion no later than a given date.
(A) Housing Tax Credit Training sponsored by the Texas
Apartment Association;
(B) Income Determination Training conducted by TDHCA
staff;
(C) Review one or more of the TDHCA Compliance Training
Presentation webinars:
(i) 2012 Income and Rent Limits Webinar Video;
(ii) 2023 Supportive Services Webinar Video;
(iii) Income Eligibility Presentation Video;
(iv) 2013 Annual Owner's Compliance Report (AOCR) Webinar
Video;
(v) Most current Tenant Selection Criteria Presentation;
(vi) Most current Affirmative Marketing Requirements
Presentation;
(vii) Fair Housing Webinars (including but not limited
to the 2017 FH webinars);
(viii) Multifamily Direct Loan Presentation Video;
(ix) 2022 Housing Tax Credit Monitoring after the Compliance
Period Presentation Video;
(x) 2022 Section 811 Project Rental Assistance Presentation
Video; and
(xi) 2023 Utility Allowance Training Presentation Video;
(D) Training for Certified Occupancy Specialist or
Blended Occupancy Specialist; or
(E) Any other training deemed applicable and appropriate
by the Department, which may include but is not limited to, weatherization
related specific trainings such as OSHA, Lead Renovator, or Building
Analyst training.
(10) Owner is required to submit the written policies
and procedures for all Developments subject to a TDHCA LURA for review
and will correct them as directed by the Department.
(11) Owner is required to have qualified personnel
or a qualified third party perform NSPIRE inspections of 5% of their
Units on a quarterly basis for a period of one year, and promptly
repair any deficiencies. Different Units must be selected every quarter.
Evidence of inspections and corrections must be submitted to the Department
upon request.
(12) Within 60 days of the condition issuance date
the Owner will contract for a third party Property Needs Assessment
and will submit to the Department a plan for addressing noted issues
along with a budget and timeframe for completion.
(13) Owner agrees to have a third party accessibility
review of the Development completed at a time to be determined by
the Applicant, but no later than prior to requesting a TDHCA final
construction inspection. Evidence of review must be submitted to the
Department upon request.
(14) Applicant/Owner is required to provide all documentation
relating to a Single Audit on or before a specified date.
Cont'd... |
