Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 10 - UNIFORM MULTIFAMILY RULES › Subchapter F - COMPLIANCE MONITORING › Section 10.623 - Monitoring Procedures for Housing Tax Credit Properties After the Compliance Period

Current through Reg. 49, No. 28; July 12, 2024
(a) HTC properties allocated credit in 1990
				  and after are required under §42(h)(6) of the Code to record a LURA
				  restricting the Development for at least 30 years. Various sections of the Code
				  specify monitoring rules State Housing Finance Agencies must implement during
				  the Compliance Period.
(b) After
				  the Compliance Period, the Department will continue to monitor HTC Developments
				  using the criteria detailed in paragraphs (1) - (14) of this subsection:
(1) The frequency and depth of monitoring
				  household income, rents, social services and other requirements of the LURA
				  will be determined based on risk. Factors will include changes in ownership or
				  management, compliance history, timeliness of reports and timeliness of
				  responses to Department requests;
(2) At least once every three years the
				  property will be physically inspected including the exterior of the
				  Development, all building systems and 10% of Low-Income Units. No less than
				  five but no more than 35 of the Development's HTC Low-Income Units will be
				  physically inspected to determine compliance with HUD's National Standards for
				  the Physical Inspection of Real Estate;
(3) Each Development shall submit an annual
				  report in the format prescribed by the Department;
(4) Reports to the Department must be
				  submitted electronically as required in §
											10.607 of this subchapter
				  (relating to Reporting Requirements);
(5) Compliance monitoring fees will continue
				  to be submitted to the Department annually in the amount stated in the
				  LURA;
(6) All HTC households must
				  be income qualified upon initial occupancy of any Low Income Unit. Proper
				  verifications of income are required, and the Department's Income Certification
				  form must be completed unless the Development participates in the Rural Rental
				  Housing Program or a project-based HUD program, in which case the other
				  program's certification form will be accepted;
(7) Rents will remain restricted for all HTC
				  Low-Income Units. After the Compliance Period, utilities paid to the Owner are
				  accounted for in the utility allowance. TCAP, Exchange, Bond, and THTF
				  Developments layered with Housing Tax Credits no longer within the Compliance
				  Period also include utilities paid to the Owner as part of the utility
				  allowance. The tenant paid portion of the rent plus the applicable utility
				  allowance must not exceed the applicable limit. Any excess rent collected must
				  be refunded;
(8) All additional
				  income and rent restrictions defined in the LURA remain in effect;
(9) For Additional Use Restrictions, defined
				  in the LURA (such as supportive services, nonprofit participation, elderly,
				  etc.), refer to the Development's LURA to determine if compliance is required
				  after the completion of the Compliance Period or if the Compliance Period was
				  specifically extended beyond 15 years;
(10) The Owner shall not terminate the lease
				  or evict low-income residents for other than good cause;
(11) The total number of required HTC
				  Low-Income Units can be maintained Development wide;
(12) Owners may not charge fees for amenities
				  that were included in the Development's Eligible Basis;
(13) Once a calendar year, Owners must
				  continue to collect and maintain current data on each household that includes
				  the number of household members, age, ethnicity, race, disability status
				  student status and rental assistance (if any). This information can be
				  collected on the Department's Annual Eligibility Certification form or the
				  Income Certification form or HUD Income Certification form or USDA Income
				  Certification form; and
(14)
				  Employee occupied units will be treated in the manner prescribed in §
											10.622(h) of this
				  chapter (relating to Special Rules Regarding Rents and Rent Limit
				  Violations).