Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 11 - QUALIFIED ALLOCATION PLAN (QAP) › Subchapter A - PRE-APPLICATION, DEFINITIONS, THRESHOLD REQUIREMENTS AND COMPETITIVE SCORING › Section 11.5 - Competitive HTC Set-Asides. (Section 2306.111(d))

Current through Reg. 49, No. 28; July 12, 2024
This section identifies the statutorily-mandated Set-asides
					 which the Department is required to administer. An Applicant may elect to
					 compete in each of the Set-asides for which the proposed Development qualifies.
					 In order to be eligible to compete in the Set-aside, the Application must meet
					 the requirements of the Set-aside as of the Full Application Delivery Date.
					 Election to compete in a Set-aside does not constitute eligibility to compete
					 in the Set-aside, and Applicants who are ultimately deemed not to qualify to
					 compete in the Set-aside will be considered not to be participating in the Set-
					 aside for purposes of qualifying for points under §
										11.9(e)(3) of
					 this chapter (related to Criteria promoting the efficient use of limited
					 resources and applicant accountability). Commitments of Competitive HTCs issued
					 by the Board in the current program year will be applied to each Set-aside,
					 Rural regional allocation, Urban regional allocation, and USDA Set-aside for
					 the current Application round as appropriate.
(1) Nonprofit Set-Aside. (§2306.6729 and
				  §2306.6706(b)). At least 10% of the State Housing Credit Ceiling for each
				  calendar year shall be allocated to Qualified Nonprofit Developments which meet
				  the requirements of Code, §42(h)(5) and Tex. Gov't Code §
										2306.6729 and §
										2306.6706(b).
				  Qualified Nonprofit Organizations must have the controlling interest in the
				  Development Owner applying for this Set-aside (i.e., greater than 50% ownership
				  in the General Partner). If the Application is filed on behalf of a limited
				  partnership, the Qualified Nonprofit Organization must be the manager of the
				  Managing General Partner. If the Application is filed on behalf of a limited
				  liability company, the Qualified Nonprofit Organization must be the Manager of
				  the controlling Managing Member. Additionally, for Qualified Nonprofit
				  Development in the Nonprofit Set-aside the nonprofit entity or its nonprofit
				  Affiliate or subsidiary must be the Developer or a co-Developer as evidenced in
				  the development agreement. An Applicant that meets the requirements to be in
				  the Qualified Nonprofit Set-aside is deemed to be applying under that Set-aside
				  unless their Application specifically includes an affirmative election to not
				  be treated under that Set-aside and a certification that they do not expect to
				  receive a benefit in the allocation of tax credits as a result of being
				  affiliated with a nonprofit. The Department reserves the right to request a
				  change in this election or to not recommend credits for those unwilling to
				  change elections if insufficient Applications in the Nonprofit Set-Aside are
				  received. Applicants may not use different organizations to satisfy the state
				  and federal requirements of the Set-aside.
(2) USDA Set-Aside. (§2306.111(d-2)). 5%
				  of the State Housing Credit Ceiling for each calendar year shall be allocated
				  to Rural Developments which are financed through USDA. If an Application in
				  this Set-aside involves Rehabilitation it will be attributed to and come from
				  the At- Risk Development Set-aside; if an Application in this set-aside
				  involves New Construction it will be attributed to and come from the applicable
				  Uniform State Service Region and will compete within the applicable subregion
				  unless the Application is receiving USDA Section 514 funding. Applications must
				  also meet all requirements of Tex. Gov't Code §
										2306.111(d-2).
(A) Eligibility of Certain Developments to
				  Participate in the USDA or Rural Set-asides. (§2306.111 (d-4)). A proposed
				  or Existing Residential Development that, before September 1, 2013, has been
				  awarded or has received federal financial assistance provided under
				  §§514, 515, or 516 of the Housing Act of 1949 (4
				  2 U.S.C. §§
												1484,
				  1485, or
				  1486) may be attributed to and come
				  from the At-Risk Development Set-aside or the Uniform State Service Region in
				  which the Development is located, regardless of whether the Development is
				  located in a Rural Area.
(B) All
				  Applications that are eligible to participate under the USDA Set-aside will be
				  considered Rural for all scoring items under this chapter. If a Property
				  receiving USDA financing is unable to participate under the USDA Set-aside and
				  it is located in an Urban subregion, it will be scored as Urban.