| (a) Applicability. For participants of the Department's
Multifamily HOME, HOME American Rescue Plan HOME-ARP, and NSP Direct
Loan program, where Commitment of Funds occurred on or after August
23, 2013, the Department is required by 24 CFR §92.252(f) and
for all National Housing Trust Fund (NHTF) recipients by 24 CFR §93.302(c)(2),
to review and approve or disapprove HOME/HOME-ARP/NSP/NHTF rents on
an annual basis. The Department is also required by 24 CFR §92.219
and §92.252(d)(2) to approve rents for HOME Match units. Development
Owners must submit documentation for the review of HOME/HOME-ARP/HOME
Match/NSP/NHTF/TCAP-RF rents by no later than August 1st of each year
as further described in the Post Award Activities Manual.
(b) Documentation for Review. The Department will furnish
a rent approval request packet for this purpose that will include
a request for Development information and an Owner's proposed rent
schedule and will require submission of a current rent roll, the most
recent 12-month operating statement for the Development, and utility
allowance information. The Department may request additional documentation
to perform a determination, as needed, including but not limited to
annual operating statements, market surveys, or other information
related to determining whether rents are sufficient to maintain the
financial viability of a project or are in compliance with maximum
rent limits.
(c) Review Process. Rents will be approved or disapproved
within 30 days of receipt of all items required to be submitted by
the Development Owner, and will be issued in the form of a signed
letter from the Asset Management Division. Development Owners must
keep copies of all approval letters on file at the Development site
to be reviewed at the time of Compliance Monitoring reviews.
(d) Compliance. Development Owners for whom this section
is applicable are subject to compliance under §10.622 of this
chapter (relating to Special Rules Regarding Rents and Limit Violations)
and may be subject to penalties under §10.625 of this chapter
(relating to Events of Noncompliance). Approval of rents by the Asset
Management Division will be limited to a review of the documentation
submitted and will not guarantee compliance with the Department's
rules or otherwise absolve an Owner of any past, current, or future
non-compliance related to Department rules, guidance, Compliance Monitoring
visits, or any other rules or guidance to which the Development or
its Owner may be subject.
|
| Source Note: The provisions of this §10.403 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 |
