(a) The requirements and restrictions regarding household
transfers for HTC, Exchange, and TCAP Developments are based on whether
the tax credit project is 100% low-income or mixed income and if the
Owner elected to treat buildings in the project as part of a multiple
building project. To determine if a Development is a multiple building
project, refer to the election on IRS Form(s) 8609 line 8(b) and accompanying
statements (if any). If IRS Form(s) 8609 have not yet been issued
by the Department and filed by the Owner, each building is its own
project. The Department may allow Owners to indicate their intended
8(b) elections and will monitor accordingly. Failure to file the same
elections with the IRS may result in noncompliance, additional monitoring,
an additional monitoring fee and findings of noncompliance.
(1) 100% low-income multiple building projects: Households
may transfer to any Unit in a 100% low-income multiple building project
and retain their program designation. The household does not need
to be and should not be certified at the time of transfer. The move
in date remains the date the household was first designated under
the program.
(2) Each building is its own project (100% low-income
and mixed income projects). Developments that made the 20/50 or 40/60
election: at the time of transfer, the household must be certified
and have a current annual income less than the income limit established
by the minimum set aside the Owner selected. Developments that elected
the average income test under IRC §42(g): the household must
be certified and their current designation averaged together with
the designations of the other households in the project must be equal
to or less than the percentage represented at the time of Application.
(3) Mixed income multiple building projects: Low-income
households retain their program designation when they transfer to
any Unit in a multiple building project if at the last annual certification
their income was less than 140% of area median income level set by
the minimum set aside.
(b) Household transfers for Bond, THTF, NHTF, HOME,
TCAP RF, HOME Match, NSP, and HOME-ARP with floating Units. Households
may transfer to any Unit within the Development. A certification is
not required at the time of transfer. If the household transfers to
a different Unit Type, the Development must maintain the Unit Type
dispersion as reflected in its LURA, by re-leasing the vacated Unit
to a program eligible household. If the Development is required to
perform annual income recertifications, the recertification is due
on the anniversary date the household originally moved into the Development.
If the Development is layered with Housing Tax Credits, use the transfer
guidelines described in subsection (a) of this section (relating to
Household Unit Transfer Requirements).
(c) Household transfers for NHTF, HOME, TCAP RF, HOME
Match, NSP, and HOME-ARP with fixed Units. Households may transfer
to any Unit and do not need to be certified at the time of the transfer.
If the household transfers to a Unit that is not fixed, the Development
must re-lease the vacated Unit to a program eligible household. If
the Development is required to perform annual income recertifications,
the recertification is due on the anniversary date the household originally
moved into the Development. If the Development is layered with Housing
Tax Credits, use the transfer guidelines described in subsection (a)
of this section (relating to Household Unit Transfer Requirements).
(d) Household Transfers in the Same Building for the
HTC Programs. A Household may transfer to a new Unit within the same
building (for the HTC program within the meaning of IRS Notice 88-91).
The Unit designations will swap status.
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Source Note: The provisions of this §10.616 adopted to be effective February 11, 2019, 44 TexReg 560; amended to be effective May 17, 2020, 45 TexReg 3036; amended to be effective November 3, 2022, 47 TexReg 7271 |