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 11.1 - General

Current through Reg. 49, No. 28; July 12, 2024
(a) Authority. This chapter applies to the
				  awarding and allocation by the Texas Department of Housing and Community
				  Affairs (the Department) of Competitive Housing Tax Credits, the state Housing
				  Tax Credit, and the issuance of Determination Notices for non-Competitive
				  Housing Tax Credits. The federal laws providing for the awarding and allocation
				  of Competitive Housing Tax Credits and issuance of Determination Notices for
				  non-Competitive Housing Tax Credits require states to adopt a qualified
				  allocation plan. Pursuant to Tex. Gov't Code, Chapter 2306, Subchapter DD, the
				  Department is assigned responsibility for this activity and pursuant to Tex.
				  Gov't Code, Chapters 171 and 233, the Department is assigned responsibility for
				  the adoption of rules relating to the State Housing Tax Credit. As required by
				  Internal Revenue Code (the Code), §42(m)(1), the Department has developed
				  this Qualified Allocation Plan (QAP) and it has been duly approved to establish
				  the procedures and requirements relating to an award and allocation of
				  Competitive Housing Tax Credits and issuance of Determination Notices for
				  non-Competitive Housing Tax Credits. All requirements herein and all those
				  applicable to a Housing Tax Credit Development or an Application under Chapter
				  10 of this title (relating to Post Award and Asset Management Requirements,
				  Compliance Monitoring, and Incomes and Rents rules) collectively constitute the
				  QAP required by Tex. Gov't Code §
										2306.67022 and §
										42(m)(1)(B)
				  of the Code. Unless otherwise specified, certain provisions in this section and
				  §§11.2 - §
										11.4 of this title also apply to
				  non-Competitive Housing Tax Credits and Multifamily Direct Loans. Subchapters B
				  - E of this chapter also apply to non-Competitive Housing Tax Credits and
				  Multifamily Direct Loans. Applicants are required to certify, among other
				  things, that they have familiarized themselves with the rules that govern that
				  specific program including, but not limited to, Chapter 1 of this title
				  (relating to Administration), Chapter 2 of this title (relating to
				  Enforcement), Chapter 10 of this title (relating to Uniform Multifamily Rules),
				  Chapter 12 of this title (relating to Multifamily Housing Revenue Bond Rules),
				  Chapter 13 of this title (relating to Multifamily Direct Loan Rule), and other
				  Department rules. This subchapter does not apply to operating assistance
				  programs or funds unless incorporated by reference in whole or in part in a
				  Notice of Funding Availability (NOFA) or rules for such a program, except to
				  the extent that Developments receiving such assistance and otherwise subject to
				  this chapter remain subject to this chapter.
(b) Due Diligence and Applicant
				  Responsibility.
(1) Department staff may, from
				  time to time, make available for use by Applicants information and informal
				  guidance in the form of reports and responses to specific questions. The
				  Department encourages communication with staff in order to clarify any issues
				  that may not be fully addressed in the QAP, or may be unclear when applied to
				  specific facts. However, while these resources are offered to help Applicants
				  prepare and submit accurate information, Applicants should also appreciate that
				  this type of guidance is limited by its nature, and that staff will apply the
				  rules of the QAP to each specific situation as it is presented in the submitted
				  Application. The Multifamily Programs Procedures Manual is not a rule and is
				  provided as good faith guidance and assistance, but in all respects the
				  statutes and rules governing the Low Income Housing Tax Credit program
				  supersede these guidelines and are controlling. Moreover, after the time that
				  an issue is initially presented and guidance is provided, additional
				  information may be identified and the issue itself may continue to develop
				  based upon additional research and guidance. Thus, until confirmed through
				  final action of the Board, staff guidance must be considered merely as an aid
				  and an Applicant continues to assume full responsibility for any actions
				  Applicant takes regarding an Application. In addition, although the Department
				  may compile data from outside sources in order to assist Applicants in the
				  Application process, it remains the sole responsibility of the Applicant to
				  perform independently the necessary due diligence to research, confirm, and
				  verify any data, opinions, interpretations, or other information upon which an
				  Applicant bases an Application or includes in any submittal in connection with
				  an Application.
(2) Developments
				  with Existing LURAs. Applicants proposing to submit an Application requesting
				  an award of Housing Tax Credits or a Direct Loan for a Development that already
				  has a LURA in place should review the existing LURA(s) on the property to
				  ensure there are no conflicts with the proposed Application. Where an Applicant
				  has identified a potential conflict, it is incumbent upon the Applicant to
				  consult with staff regarding the steps that may be necessary to resolve the
				  conflicts. This may include, but is not limited to, an Application amendment or
				  LURA amendment, a waiver, or other action that may necessitate additional staff
				  time for review or a Board determination. Depending on the timing constraints
				  associated with the proposed Application, Applicants should be mindful that
				  resolving issues relating to the existing LURA and for Direct Loans the
				  existing Contract may not coincide with the timing needed for a new award if
				  such requests are not submitted early in the process. A copy of the existing
				  LURA must be included in the Application.