Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 13 - MULTIFAMILY DIRECT LOAN RULE › Section 13.1 - Purpose

Current through Reg. 49, No. 28; July 12, 2024
(a) Authority. The
				rules in this chapter apply to the funds provided to Multifamily Developments
				through the Multifamily Direct Loan Program (MFDL or Direct Loan Program) by
				the Texas Department of Housing and Community Affairs (the Department).
				Notwithstanding anything in this chapter to the contrary, loans and grants
				issued to finance the development of multifamily rental housing are subject to
				the requirements of the laws of the State of Texas, including but not limited
				to Tex. Gov't Code, Chapter 2306, and federal law pursuant to the requirements
				of Title II of the Cranston-Gonzalez National Affordable Housing Act, Division
				B, Title III of the Housing and Economic Recovery Act (HERA) of 2008 -
				Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes,
				Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act:
				Additional Assistance for Neighborhood Stabilization Programs, Title I of the
				Housing and Economic Recovery Act of 2008, Section 1131 (Public Law
				110-289), and the implementing regulations 24 CFR
				Parts 91, 92, 93, and 570 as they may be applicable to a specific fund source.
				The Department is authorized to administer Direct Loan Program funds pursuant
				to Tex. Gov't Code, Chapter 2306.
(b) General. This chapter applies to
				Applications submitted for, and award of, MFDL funds by the Department and
				establishes the general requirements associated with the application and award
				process for such funds. Applicants pursuing MFDL assistance from the Department
				are required to certify, among other things, that they have familiarized
				themselves with all applicable rules that govern that specific program
				including, but not limited to this chapter, 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 11 of this
				title (relating to Qualified Allocation Plan (QAP)), and Chapter 12 of this
				title (relating to Multifamily Housing Revenue Bond Rules) as applicable. The
				Applicant is also required to certify that it is familiar with the requirements
				of any other federal, state, or local financing sources that it identifies in
				its Application. Any conflict with rules, regulations, or statutes will be
				resolved on a case by case basis that allows for compliance with all
				requirements. Conflicts that cannot be resolved may result in Application
				ineligibility, with the right to an Appeal as provided in 10 TAC §
									1.7 of this title (relating to
				Appeals Process) or 10 TAC §
									11.902 of this title (relating to
				Appeals Process for the Housing Tax Credit program), as applicable.
(c) Waivers. Requests for waivers of any
				program rules or requirements must be made in accordance with 10 TAC §
									11.207 of this title (relating to
				Waiver of Rules), as limited by the rules in this chapter. Waiver requirements
				are provided in paragraphs (1) - (3) of this subsection:
(1) Rule Waivers and NOFA Amendments prior to
				Construction Completion. For Direct Loan Developments, an Applicant may
				request, at the latest at Application submission, that the Department amend its
				NOFA, amend its Consolidated Plan or One Year Action Plan, or ask HUD to grant
				a waiver of its regulations, if such request will not impact the timing of the
				Application's review, nor alter the scoring or satisfaction of threshold
				requirements for the Housing Tax Credits or other Department resources. Such
				requests will be presented to the Department's Board. The Board may not waive
				rules that are federally required, or that have been incorporated as a required
				part of the Department's Consolidated Plan or One Year Action Plan (OYAP) to
				the U.S. Department of Housing and Urban Development (HUD), unless those Plans
				are so amended by the earlier of a date the NOFA is closed or by an earlier
				date that is identified by the Board. Such items include §
										13.8 of this chapter, relating to
				Loan Structure and Underwriting Requirements, the interest rate published in
				the NOFA, the maximum subsidy limits as published in the NOFA, the priorities
				listed in the NOFA, the eligibility requirements of applicants describe in rule
				or the NOFA, scoring, and the tiebreaker procedure. Prior to Contract, except
				as otherwise described in rule, the Application Acceptance Date will then be
				the date the Department completes the amendment process or receives a waiver
				from HUD, if funds are still available in the NOFA. After Contract, but prior
				to Construction Completion staff will not recommend a waiver or NOFA
				Amendment;
(2) Utility Allowance
				Waivers with Project-Based Vouchers. Upon request before or with the submittal
				of the Application or at the time the Application is amended to reflect the
				vouchers, for Developments that are layered with Project-Based Vouchers awarded
				under 24 CFR Part 983 from a Housing Authority that is not Moving to Work
				Housing Authority, Department staff will submit a waiver to the Office of
				Community Planning and Development at HUD to allow the Development to use the
				Public Housing Utility Allowance. For Project-Based Vouchers from a Housing
				Authority that is a Moving to Work Housing Authority, the Applicant must have
				the Moving to Work Housing Authority obtain this waiver from the appropriate
				HUD office or agree that the Development will be all bills-paid before Contract
				Execution. These waivers, if granted by HUD, will not require the Development
				to receive a new Application Acceptance Date; and
(3) Waivers under Closed NOFAs. The Board may
				not waive any portion of a closed NOFA prior to Construction Completion.
				Thereafter, the Board may only waive any portion of a closed NOFA as part of an
				approved Asset Management Division work out. Allowable Post-Closing Amendments
				are described in 10 TAC §
										13.13 of this chapter (relating to
				Post-Closing Amendments to Direct Loan Terms).