Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 12 - MULTIFAMILY HOUSING REVENUE BOND RULES › Section 12.7 - Full Application Process

Current through Reg. 49, No. 28; July 12, 2024
(a) Application
				Submission. Once the inducement resolution has been approved by the Board, an
				Applicant who elects to proceed with submitting a full Application to the
				Department must submit the complete tax credit Application pursuant to
				§11.201 of this part (relating to Procedural Requirements for Application
				Submission). While a Certificate of Reservation is required under §11.201
				of this part (relating to Procedural Requirements for Application Submission)
				prior to submission of the complete tax credit Application, staff may allow the
				Application to be submitted prior to the issuance of a Certificate of
				Reservation depending on circumstances associated with the Development Site,
				structure of the transaction, volume cap environment, or other factors in the
				Department's sole discretion.
(b)
				Eligibility Criteria. The Department will evaluate the Application for
				eligibility and threshold at the time of full Application pursuant to Chapter
				11 of this part (relating to Housing Tax Credit Program Qualified Allocation
				Plan). If there are changes to the Application at any point prior to closing
				that have an adverse effect on the score and ranking order and that would have
				resulted in the pre-application being placed below another pre-application in
				the ranking, the Department may terminate the Application and withdraw the
				Certificate of Reservation from the Bond Review Board (with the exception of
				changes to deferred developer's fees and support or opposition points). The
				Development and the Applicant must satisfy the requirements set forth in
				Chapter 11 of this part in addition to Tex. Gov't Code, Chapter 1372, the
				applicable requirements of Tex. Gov't Code Chapter 2306, and the Code. The
				Applicant will also be required to select a Bond Trustee from the Department's
				approved list as published on its website.
(c) Bond Documents. Once the Application has
				been submitted and the Applicant has deposited funds to pay initial costs, the
				Department's bond counsel shall draft Bond documents.
(d) Public Hearings. The Department will hold
				a public hearing to receive comments pertaining to the Development and the
				issuance of the Bonds. A representative of the Applicant or member of the
				Development Team must be present at the public hearing and will be responsible
				for conducting a brief presentation on the proposed Development and providing
				handouts at the hearing that should include at minimum, a description of the
				Development, maximum rents and income restrictions. If the proposed Development
				is Rehabilitation, the presentation should include the proposed scope of work
				that is planned for the Development. The handouts must be submitted to the
				Department for review at least two days prior to the public hearing.
				Publication of all notices required for the public hearing shall be at the sole
				expense of the Applicant, as well as any facility rental fees or required
				deposits, if applicable.
(e)
				Approval of the Bonds. Subject to the timely receipt and approval of
				commitments for financing, an acceptable evaluation for eligibility, financial
				feasibility, the satisfactory negotiation of Bond documents, and the completion
				of a public hearing, the Board will consider the approval of the final Bond
				resolution relating to the issuance, substantially final Bond documents and in
				the instance of privately placed Bonds, the pricing, terms and interest rate of
				the Bonds. For Applications that include local funding, Department staff may
				choose to delay Board consideration of the Bond issuance until such time it has
				been confirmed that the amount or terms associated with such local funding will
				not change and remain consistent with what was represented in the Department's
				underwriting analysis.
(f) Local
				Permits. Prior to closing on the Bond financing, all necessary approvals,
				including building permits from local municipalities, counties, or other
				jurisdictions with authority over the Development Site must have been obtained
				or evidence that the permits are obtainable subject only to payment of certain
				fees. In instances where such permits will be not received prior to bond
				closing, the Department may, on a limited and case-by-case basis allow for the
				closing to occur, subject to receipt of confirmation, acceptable to the
				Department, by the lender and/or equity investor that they are comfortable
				proceeding with closing.