Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 11 - QUALIFIED ALLOCATION PLAN (QAP) › Subchapter E - FEE SCHEDULE, APPEALS, AND OTHER PROVISIONS › Section 11.906 - Commitment and Determination Notice General Requirements and Required Documentation

Current through Reg. 49, No. 28; July 12, 2024
(a) Commitment. For
				  Competitive HTC Developments, the Department shall issue a Commitment to the
				  Development Owner which shall confirm that the Board has approved the
				  Application and state the Department's commitment to make a Housing Credit
				  Allocation to the Development Owner in a specified amount, subject to the
				  feasibility determination described in Chapter 11, Subchapter D of this title
				  (relating to Underwriting and Loan Policy) and the determination that the
				  Development satisfies the requirements of this chapter and other applicable
				  Department rules. The Commitment shall expire on the date specified therein,
				  which shall be 30 calendar days from the effective date, unless the Development
				  Owner indicates acceptance by executing the Commitment, pays the required fee
				  specified in §
										11.901 of this title (relating to
				  Fee Schedule), and satisfies any conditions set forth therein by the
				  Department. The Commitment expiration date may not be extended.
(b) Determination Notices. For Tax Exempt
				  Bond Developments, the Department shall issue a Determination Notice which
				  shall confirm that the Development satisfies the requirements of this chapter
				  as applicable and other applicable Department rules in accordance with the
				  §42(m)(1)(D) of the Internal Revenue Code (the Code). The Determination
				  Notice shall also state the Department's determination of a specific amount of
				  housing tax credits that the Development may be eligible for, subject to the
				  requirements set forth in the Department's rules, as applicable. The
				  Determination Notice shall expire on the date specified therein, which shall be
				  30 calendar days from the effective date, unless the Development Owner
				  indicates acceptance by executing the Determination Notice, pays the required
				  fee specified in Chapter 11, Subchapter E of this title, and satisfies any
				  conditions set forth therein by the Department. For Tax-Exempt Bond
				  Developments utilizing a local issuer, the Determination Notice expiration date
				  may be extended for a period not to exceed 5 calendar days, upon request. For
				  Tax-Exempt Bond Developments utilizing TDHCA as the bond issuer, the expiration
				  date may be extended to coincide with the closing date. If the requirements of
				  the Determination Notice, and any conditions of the Determination Notice are
				  met, the Determination Notice shall be valid for a period of one year from the
				  effective date of the Determination Notice, without distinction between a
				  Certificate of Reservation or Traditional Carryforward Reservation. In
				  instances where the Certificate of Reservation is withdrawn after the
				  Determination Notice has been issued and a new Certification of Reservation is
				  issued, staff will not re-issue the Determination Notice. After one year from
				  the effective date of the Determination Notice, if a new Certificate of
				  Reservation or Traditional Carryforward Reservation is issued, the Applicant
				  will be required to contact the Department in order to have a new Determination
				  Notice issued and a new Application must be submitted. Such Application
				  submission must meet the requirements of §
										11.201(2) of this
				  chapter (relating to Procedural Requirements for Application Submission). If
				  more than a year has not passed from the effective date of the Determination
				  Notice, yet an Applicant desires to have a new Determination Notice issued that
				  reflects a different recommended credit amount, then a new Application must be
				  submitted that meets the requirements of §
										11.201(2) of this
				  chapter.
(c) Documentation
				  Submission Requirements at Commitment of Funds. No later than the expiration
				  date of the Commitment (or no later than December 31 for Competitive HTC
				  Applications, whichever is earlier) or Determination Notice, the documentation
				  described in paragraphs (1) - (7) of this subsection must be provided. Failure
				  to provide these documents may cause the Commitment or Determination Notice to
				  be rescinded.
(1) For entities formed outside
				  the state of Texas, evidence that the entity filed a Certificate of Application
				  for foreign qualification in Texas, a Franchise Tax Account Status from the
				  Texas Comptroller of Public Accounts, and a Certificate of Fact from the Office
				  of the Secretary of State. If the entity is newly registered in Texas and the
				  Franchise Tax Account Status or Certificate of Fact are not available, a
				  statement can be provided to that effect.
(2) For Texas entities, a copy of the
				  Certificate of Filing for the Certificate of Formation from the Office of the
				  Secretary of State; a Certificate of Fact from the Secretary of State, and a
				  Franchise Tax Account Status from the Texas Comptroller of Public Accounts. If
				  the entity is newly registered and the Certificate of Fact and the Franchise
				  Tax Account Status are not available, a statement can be provided to that
				  effect.
(3) Evidence that the
				  signer(s) of the Commitment or Determination Notice have sufficient authority
				  to sign on behalf of the Applicant in the form of a corporate resolution which
				  indicates the sub-entity in Control consistent with the entity contemplated and
				  described in the Application.
(4)
				  Evidence of final zoning that was proposed or needed to be changed pursuant to
				  the Development plan.
(5) Evidence
				  of satisfaction of any conditions identified in the Credit Underwriting
				  Analysis Report, any conditions provided for in Chapter 1, Subchapter C of this
				  title (relating to the Previous Participation Review, or any other conditions
				  of the award required to be met at Commitment or Determination
				  Notice.
(6) Documentation of any
				  changes to representations made in the Application subject to §
											10.405 of this title (relating to
				  Amendments and Extensions).
(7) For
				  Applications underwritten with a property tax exemption, documentation must be
				  submitted in the form of a letter from an attorney identifying the statutory
				  basis for the exemption and indicating that the exemption is reasonably
				  achievable, subject to appraisal district review. Additionally, any Development
				  with a proposed Payment in Lieu of Taxes (PILOT) agreement must provide
				  evidence regarding the statutory basis for the PILOT and its terms.
(8) For Competitive HTC Applications, for any
				  documentation that must be submitted in accordance with this section, staff may
				  grant relief of the associated deadline, for unusual or unpredictable
				  circumstances that are outside of the Applicant's control such as inclement
				  weather or failed deliveries. "Applicants must submit any payment due under
				  this chapter and operate under the assumption that the deadline for such
				  payment is final.