Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 9 - TEXAS BOND REVIEW BOARD › Chapter 190 - ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS › Subchapter A - PROGRAM RULES › Section 190.3 - Filing Requirements for Applications for Reservation

Current through Reg. 49, No. 28; July 12, 2024
(a) Form. Applications must be filed on forms
				  prescribed by the board and must contain all information and documentation
				  required under the Act and this chapter, as applicable.
(b) Application Filing. The issuer shall
				  submit one electronic copy or one original application for reservation. Each
				  application must be accompanied by the following:
(1) the application fee;
(2) the certificate regarding fees, on the
				  form prescribed by the board;
(3) a
				  copy of the inducement resolution or other similar official action taken by the
				  issuer with respect to the bonds and the project which are the subject of the
				  application, certified by an officer of the issuer; or a copy of the certified
				  resolution of the issuer authorizing the filing of the application for
				  reservation, in either case certified with an authorized signature by an
				  officer of the issuer and unless the resolution authorizes the issuer to seek
				  an allocation in multiple program years, adopted within 18 months of the
				  application date'
(4) a copy of the
				  issuer's articles of incorporation as certified by the secretary of state of
				  Texas and bylaws, including amendments thereto and restatements thereof, or
				  alternatively, a certification with an authorized signature by an authorized
				  representative of the issuer that there have been no amendments to the articles
				  of incorporation or bylaws since the last submission of these items to the
				  board;
(5) a copy of the issuer's
				  certificate of continued existence from the secretary of state of Texas dated
				  within 30 days of submission of application, an issuer's certificate of good
				  standing is not an acceptable substitution for this requirement;
(6) a copy of the borrower's and, if the
				  borrower is a partnership, each partner's certificate of good standing from the
				  comptroller of public accounts of Texas, dated within 30 days of submission of
				  application;
(7) a statement by the
				  issuer, other than an issuer of a state-voted issue or the Texas Department of
				  Housing and Community Affairs (TDHCA) or the Texas State Affordable Housing
				  Corporation (TSAHC) that the bonds are not being issued for the same stated
				  purpose for which the issuer has received sufficient carryforward during a
				  prior year or for which there exists unexpended proceeds from a prior issue or
				  issues of bonds issued by the same issuer, or based on the issuer's
				  population;
(8) if unexpended
				  proceeds exist, including transferred proceeds representing unexpended
				  proceeds, from a prior issue or issues of bonds, other than a state-voted issue
				  or an issue by the TDHCA or TSAHC, issued by the issuer or on behalf of the
				  issuer, or based on the issuer's population, for the same stated purpose for
				  which the bonds are the subject of this application, a statement by the trustee
				  as to the current amount of unexpended proceeds that exists for each such
				  issue. The issuer of the prior issue of bonds shall certify to the current
				  amount of unexpended proceeds that exists for each issue should a trustee not
				  administer the bond issues;
(9) if
				  unexpended proceeds, including transferred proceeds representing unexpended
				  proceeds, other than prepayments exist from a prior issue or issues of bonds,
				  other than a state-voted issue or an issue by TDHCA or TSAHC, issued by the
				  issuer or on behalf of the issuer, or based on the issuer's population, for the
				  same stated purpose for which the bonds are the subject of this application, a
				  definite and binding financial commitment agreement must accompany the
				  application in such form as the board finds acceptable, to expend the
				  unexpended proceeds by the later of 12 months after the date of receipt by the
				  board of an application for reservation or December 31 of the program year for
				  which the application is being filed. For purposes of this paragraph, the
				  commitment by lenders to originate and close loans within a certain period of
				  time shall be deemed a definite and binding agreement to expend bond proceeds
				  within such period of time and any additional period of time during which such
				  origination period may be extended under the terms of such agreement; provided
				  that any extension provision may be amended, prior to the date on which the
				  bond authorization requirements described in subsection (c) of this section
				  must be satisfied, to provide that such period shall not be extended beyond the
				  later of 12 months after the date of receipt by the board of an application for
				  reservation or December 31 of the program year for which the application is
				  being filed. For purposes of this paragraph, issuers of qualified student loan
				  bonds authorized by §
											53B.47,
				  Education Code, may satisfy the requirements of Government Code §
											1372.028(c)(3)(F),
				  in lieu of a definite and binding agreement, by providing with the application
				  evidence as certified by the issuer that the issuer has purchased, in each of
				  the last three calendar years, qualified student loans in amounts greater than
				  or equal to the amount of the unexpended proceeds;
(10) if unexpended proceeds exist from a
				  prior issue or issues of bonds, other than a state-voted issue or an issue by
				  the TDHCA or TSAHC, issued by the issuer or on behalf of the issuer, or based
				  on the issuer's population, for the same stated purpose for which the bonds are
				  the subject of the pending application, a written opinion of legal counsel,
				  addressed to the board, to the effect, that the board may rely on the
				  representation contained in the application to fulfill the requirements of the
				  Act and that the agreement referred to in paragraph (9) of this subsection
				  constitutes a legal and binding obligation of the issuer, if applicable, and
				  the other party or parties to the agreement;
(11) a written opinion of legal counsel,
				  addressed to the board, stating the bonds are required to be included under the
				  state ceiling and that the issuer is legally authorized to issue bonds for
				  projects of the same type and nature as the project which is the subject of the
				  application. This opinion shall cite by constitutional or statutory reference,
				  the provision of the Constitution or law of the state which authorizes the
				  bonds for the project;
(12) a
				  qualified mortgage bond issuer that submits an application for reservation as
				  described in §
											1372.032,
				  Government Code, shall provide a statement certifying to the most recent
				  closing of qualified mortgage bonds determined as provided in §
											190.2(c)(3)
				  of this title (relating to Allocation and Reservation System), and the most
				  recent date of a reservation received for mortgage revenue bonds and state the
				  government unit(s) for which the local population was based for the issuance of
				  bonds or for receipt of a reservation; and for said issuers who have received
				  an allocation of volume cap for the purposes of issuing qualified mortgage
				  bonds within the six years prior to the date of application, a statement on the
				  form prescribed by the Board as to the utilization percentage relating to its
				  most recent allocation calculated in accordance with Government Code §
											1372.0261.
				  If during the previous year, a qualified mortgage bond issuer submitted an
				  application for reservation that has not been granted at the time of
				  application for the lottery, the issuer may opt to file a statement explaining
				  whether there are any changes in information from the application filed the
				  previous year in lieu of submitting a complete application. If there are
				  changes, the statement must specify current information. The issuer must pay
				  the same application fee whether filing a statement or a complete
				  application;
(13) for a qualified
				  residential rental project issue, an issuer shall provide a copy of an active
				  executed earnest money contract between the borrower and the seller of the
				  project. The earnest money contract for Tax-Exempt Bond Lottery Applications
				  must be in effect at the time of submission of the application to the board and
				  expire no earlier than December 1 of the year preceding the applicable program
				  year. The earnest money contract must stipulate and provide for the borrower's
				  option to extend the contract expiration date through March 1 of the program
				  year, subject only to the seller's receipt of additional earnest money or
				  extension fees, so that the borrower will have site control at the time a
				  reservation is granted. If the borrower owns the property, evidence of
				  ownership must be provided. For subsequent reservations granted throughout the
				  remainder of the program year, the borrower must provide within the close of
				  three business days following the notification of pending reservation:
(A) if applicable, proof of application for
				  Low Income Housing Tax Credits with TDHCA; and
(B) a copy of an earnest money contract that
				  is in full force and effect or the reservation will automatically
				  expire;
(14) the borrower
				  must be specified in the application for reservation of allocation. The
				  borrower may be identified as a to-be-formed entity only if the application for
				  reservation of allocation specifies a related entity or an entity that will be
				  a component of the to-be-formed entity as borrower;
(15) for qualified residential rental project
				  issues where the borrower is an entity or to-be-formed entity that is
				  designated or intends to seek abatement from ad valorem taxation, that intent
				  to seek abatement must be specified on the application for reservation of
				  allocation;
(16) each issuer of
				  qualified student loan bonds authorized by §
											53B.47, Education
				  Code, shall submit with the application for reservation the information as
				  required in Government Code
				  1372.0281.