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 10.402 - Requests for Subordination Agreements, HUD Amendments to Restrictive Covenants, or HUD Riders to Restrictive Covenants

Current through Reg. 49, No. 28; July 12, 2024
(a) Requests for
				  Subordination Agreements, HUD Amendments to Restrictive Covenants or HUD Riders
				  to Restrictive Covenants from the Department must be reviewed and approved by
				  the Department's Asset Management Division and Legal Division prior to
				  execution. The Development Owner must demonstrate that the Development will
				  remain feasible with the proposed new debt. For HTC Developments seeking to
				  refinance within two years from the issuance of the IRS Form(s) 8609, a review
				  of the Development's cost certification will be conducted to determine if the
				  change in the financing structure would have affected the credit award. If it
				  is determined that the change to the financing structure, net of additional
				  costs associated with the refinance, would have resulted in over sourcing the
				  Development, thereby resulting in an adjustment to the credit award, the
				  Development Owner may be required to fund a Special Reserve Account in
				  accordance with §
										10.404 of this subchapter
				  (relating to Reserve Accounts). Approval from the Board will be required for
				  loan amounts that would cause the Developments to be over-sourced after
				  accounting for the additional costs associated with the refinance and the
				  deposit into the Special Reserve Account. Subordinations or re-subordinations
				  of Developments with Direct Loans from the Department are also subject to the
				  requirements under §
										13.13(c)(2) of
				  this title (relating to Multifamily Direct Loan Rule) and Chapter 11,
				  Subchapter D of this title (relating to Underwriting and Loan Policy),
				  including but not limited to §11.302(g)(4).
(b) All requests must include:
(1) Requested document on Department approved
				  template, if available, and completed with the Development specific
				  information;
(2) Documentation such
				  as a loan commitment or application that identifies the proposed loan amount
				  and terms;
(3) If the proposed
				  legal description is different from the legal description in the Department's
				  regulatory agreement, a survey, title commitment, or recorded plat that agrees
				  with the legal description in the requested document. Changes to the
				  Development Site may be subject to further review and approval under §
											10.405 of this subchapter
				  (relating to Amendments and Extensions); and
(4) Development's most recent 12-month
				  trailing operating statement. If the financial statement indicates that the
				  proposed new debt cannot be supported by the Development, the Development Owner
				  must submit an operating pro forma and a written explanation for the
				  differences from the actual performance of the Development.