Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 10 - UNIFORM MULTIFAMILY RULES › Subchapter E - POST AWARD AND ASSET MANAGEMENT REQUIREMENTS › Section 10.401 - Housing Tax Credit and Tax Exempt Bond Developments

Current through Reg. 49, No. 28; July 12, 2024
(a) 10% Test (Competitive HTC Only). No later
				  than July 1 of the year following the submission of the Carryover Allocation
				  Agreement or as otherwise specified in the applicable year's Qualified
				  Allocation Plan, documentation must be submitted to the Department verifying
				  that the Development Owner has expended more than 10% of the Development
				  Owner's reasonably expected basis, pursuant to §42(h)(1)(E)(i) and (ii) of
				  the Code and Treasury Regulations,
				  26 CFR §
											1.42-6. The Development Owner must submit, in
				  the form prescribed by the Department, documentation evidencing paragraphs (1)
				  - (7) of this subsection, along with all information outlined in the Post Award
				  Activities Manual. Satisfaction of the 10% Test will be contingent upon the
				  submission of the items described in paragraphs (1) - (7) of this subsection as
				  well as all other conditions placed upon the Application in the Commitment.
				  Requests for an extension will be reviewed on a case by case basis as addressed
				  in §
										10.405(c) of this
				  subchapter and §
										11.2 of this title, as applicable,
				  and a point deduction evaluation will be completed in accordance with Tex.
				  Gov't Code §
										2306.6710(b)(2)
				  and §
										11.9(f) of this
				  title. Documentation to be submitted for the 10% Test includes:
(1) An Independent Accountant's Report and
				  Taxpayer's Basis Schedule form. The report must be prepared on the accounting
				  firm's letterhead and addressed to the Development Owner or an Affiliate of the
				  Development Owner. The Independent Accountant's Report and Taxpayers Basis
				  Schedule form must be signed by the Development Owner. If, at the time the
				  accountant is reviewing and preparing their report, the accountant has
				  concluded that the taxpayer's reasonably expected basis is different from the
				  amount reflected in the Carryover Allocation agreement, then the accountant's
				  report should reflect the taxpayer's reasonably expected basis as of the time
				  the report is being prepared;
(2)
				  Any conditions of the Commitment or Real Estate Analysis underwriting report
				  due at the time of 10% Test submission;
(3) Evidence that the Development Owner has
				  purchased, transferred, leased, or otherwise has ownership of the Development
				  Site and a current title policy. The Development Site must be identical to the
				  Development Site that was submitted at the time of Application submission. For
				  purposes of this paragraph, any changes to the Development Site acreage between
				  Application and 10% Test must be addressed by written explanation or, as
				  appropriate, in accordance with §
											10.405 of this subchapter
				  (relating to Amendments and Extensions);
(4) A current survey or plat of the
				  Development Site, prepared and certified by a duly licensed Texas Registered
				  Professional Land Surveyor. The survey or plat must clearly delineate the flood
				  plain boundary lines and show all easements and encroachments;
(5) For New Construction, Reconstruction, and
				  Adaptive Reuse Developments, a certification from a Third Party civil engineer
				  or architect stating that all necessary utilities will be available at the
				  Development Site and that there are no easements, licenses, royalties, or other
				  conditions on or affecting the Development that would materially or adversely
				  impact the ability to acquire, develop, and operate as set forth in the
				  Application. Copies of supporting documents may be required by the
				  Department;
(6) For the Development
				  Owner and on-site or regional property manager, training certificate(s) from a
				  Department approved "property owner and manager Fair Housing trainer" showing
				  that a controlling Principal in the Development Owner structure and an on-site
				  or regional property manager attended and passed at least five hours of Fair
				  Housing training. For architects and engineers, training certificate(s) from a
				  Department approved "architect and engineer Fair Housing trainer" showing that
				  the lead architect or engineer responsible for certifying compliance with the
				  Department's accessibility and construction standards has attended and passed
				  at least five hours of Fair Housing training. Certifications required under
				  this paragraph must not be older than three years from the date of submission
				  of the 10% Test Documentation, and must verify that all parts or phases of the
				  offered training have been completed; two certificates supplied for the same
				  part or phase of an offered training will not be counted towards the five hour
				  required minimum, even if they were attended on different dates; and
(7) A Certification from the lender and
				  syndicator identifying all known Guarantors. If identified Guarantors have
				  changed from the Guarantors or Principals identified at the time of
				  Application, a non-material amendment may be required in accordance with §
											10.405 of this subchapter
				  (relating to Amendments and Extensions), and the new Guarantors or Principals
				  must be reviewed in accordance with Chapter 1, Subchapter C of this title
				  (relating to Previous Participation and Executive Award Review and Advisory
				  Committee).
(8) Evidence of
				  submission of the CMTS Filing Agreement pursuant to §
											10.607(a) of this
				  title (relating to Reporting Requirements).