Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 10 - UNIFORM MULTIFAMILY RULES › Subchapter I - PUBLIC FACILITY CORPORATION COMPLIANCE MONITORING › Section 10.1104 - Audit Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) The Auditor
				  must use the Department's Public Facility Corporation monitoring forms made
				  available on the website. The review performed by the Auditor may be completed
				  either onsite or electronically. Original records must be made available to the
				  Auditor. The file sample used by the Auditor must contain at least twenty
				  percent (20%) of the total number of Restricted Units for the Development, but
				  no more than a total of fifty (50) household files. The selection of Restricted
				  Units should primarily be new move-ins but should also include at least ten
				  percent (10%) sample of all the household files that have
				  recertified.
(b) The Auditor will
				  ensure Development meets the following requirements and will identify any
				  deficiencies found in the report:
(1) The
				  Development has a properly recorded Regulatory Agreement with an initial
				  minimum 10-year term.
(2) For newly
				  constructed Developments:
(A) At least ten
				  percent (10%) of the units in the Development are reserved for, or occupied by,
				  households at or below sixty percent (60%) Area Median Income (AMI), adjusted
				  for household size, as established by HUD;
(B) At least an additional forty percent
				  (40%) of the units in the Development are reserved for, or occupied by,
				  households at or below eighty percent (80%) AMI, adjusted for household size,
				  as established by HUD.
(3) For occupied Developments acquired by the
				  PFC:
(A) At least twenty-five percent (25%) of
				  the units in the Development are reserved for, or occupied by, households at or
				  below sixty percent (60%) AMI, adjusted for household size, established by HUD;
				  and
(B) At least an additional
				  forty percent (40%) of the units in the Development are reserved for, or
				  occupied by, households at or below eighty percent (80%) AMI, adjusted for
				  household size, as established by HUD; or
(C) The Development meets the household
				  income restrictions set forth in §10.1104(B); and
(D) The Operator expends at least fifteen
				  percent (15%) of the gross cost of the Development, as shown in the settlement
				  statement, on rehabilitating, renovating, reconstructing, or repairing, the
				  Development, with such activities commencing no later than the first
				  anniversary of the date of acquisition, and concluding no later than the third
				  anniversary of the date of acquisition.
(4) Monthly rent for Restricted Units may not
				  exceed thirty percent (30%) of the imputed household income limitation for the
				  unit, adjusted for an imputed family size of one person per bedroom plus one
				  person, as determined by HUD. Notwithstanding the foregoing, if a Restricted
				  Unit is occupied by a household with a Housing Choice Voucher, and the payment
				  standard for that voucher is less than the monthly rent for the Restricted Unit
				  established pursuant to the immediately preceding sentence, the household may
				  be required to pay the difference between the payment standard and the monthly
				  rent.
(5) The percentage of
				  Restricted Units in each Unit Type in the Development, must be the same or
				  greater percentage as the percentage of each Unit Type of units that are not
				  Restricted Units in the Development.
(6) Occupants of Restricted Units are
				  required to recertify at the time of the renewal of a lease agreement, the
				  income of the household using a Department-approved Income Certification form.
				  If a household exceeds the income limit at an annual income recertification,
				  the Operator should follow the Available Unit Rule as outlined in Section
				  42(g)(2)(D) of the Internal Revenue Code.
(7) The Development must affirmatively market
				  to households participating in the Housing Choice Voucher program and local
				  housing authorities.
(8) The PFC's
				  website must include information about the Development and its compliance with
				  Section
				  303.0425, Texas
				  Local Government Code, along with its policies on the acceptance of Housing
				  Choice Voucher holders.