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 10.615 - Elections under IRC Section 42(g) and Additional Income and Rent Restrictions for HTC, Exchange, and TCAP Developments

Current through Reg. 49, No. 28; July 12, 2024
(a) Under the Code, HTC Development Owners
				  may elect 20% of the Units restricted at the 50% income and rent limits
				  (20/50), 40% of the Units restricted at the 60% income and rent limits (40/60)
				  or the average income minimum set aside. Many Developments have additional
				  income and rent requirements (e.g., 30%, 40% and 50%) that are lower than or in
				  addition to the election requirement. This requirement is referred to as
				  "additional occupancy restrictions" and is reflected in the Development's
				  LURA.
(b) A Development with
				  additional rent and occupancy restrictions must maintain a waiting list for
				  their lower rent restricted Units. The Development's waitlist policy must
				  inform applicants and current residents of the availability of lower rent Units
				  and the process for renting a lower rent Unit. Unless otherwise approved at
				  Application, underwriting, and cost certification, all Unit sizes must be
				  available at the lower rent limits. The waitlist policy for Developments with
				  lower rent restricted Units must address how the waiting list for their lower
				  rent restricted Units will be managed. The policy must not give a preference to
				  prospective applicants over existing households. However, a Development may,
				  but is not required to, prioritize existing households over prospective
				  applicants.
(c) The Department will
				  examine the actual gross rent (tenant portion of rent plus utility allowance
				  plus any mandatory fees) and income levels of all households to determine if
				  the additional income and rent requirements of the LURA are met. Until and
				  unless the Internal Revenue Service or Treasury Department issue conflicting
				  guidance, the Department will examine the actual gross rent and income of all
				  households to determine if Developments that elected the average income minimum
				  set aside have met the federal requirements and any lower additional occupancy
				  restriction reflected in the Development's LURA.
(d) Until and unless the Internal Revenue
				  Service or the Treasury Department issue conflicting or additional guidance,
				  the Department will monitor the Available Unit Rule in the following manner for
				  Developments that elected the average income minimum set aside:
(1) If the income of the household who, at
				  the last certification, had an income and rent less than the 60% limits exceeds
				  140% of the 60% limit, the household must be redesignated as over
				  income.
(2) If the income of a
				  household with an income or rent above the 60% level and less than or equal to
				  the 70% limits exceeds 140% of the 70% limit, the household must be designated
				  as over income.
(3) If the income
				  of a household with an income or rent above the 70% level and less than or
				  equal to the 80% limits exceeds 140% of the 80% limit, the household must be
				  designated as over income.
(4)
				  Owners are not required to terminate the tenancy of over income households.
				  When the Unit occupied by an over income household is vacated, it must be
				  reoccupied by a household with an income and rent level equal to or less than
				  the rent level of the household that went over income. In addition, the Unit
				  must be reoccupied by a household that restores the low income average of the
				  project to 60% or less.