Current through Reg. 49, No. 38; September 20, 2024
(a) Filing and Term
of Regulatory Agreement. A Bond Regulatory and Land Use Restriction Agreement
will be filed in the property records of the county in which the Development is
located for each Development financed from the proceeds of Bonds issued by the
Department. Such Regulatory and Land Use Restriction Agreement shall include
provisions relating to the Qualified Project Period, the State Restrictive
Period, along with points claimed for other provisions that will be required to
be monitored throughout the State Restrictive Period, and shall also include
provisions relating to Persons with Special Needs. The minimum term of the
Regulatory Agreement will be based on the criteria as described in paragraphs
(1) - (3) of this subsection, as applicable:
(1) 30 years, or such longer period as
elected under §
12.6(4) of this
chapter (relating to Extended Affordability), from the date the Development
Owner takes legal possession of the Development;
(2) The end of the remaining term of the
existing federal government assistance pursuant to Tex. Gov't Code, §
2306.185;
or
(3) The period required by the
Code.
(b) Federal Set
Aside Requirements.
(1) Developments which are
financed from the proceeds of Private Activity Bonds must be restricted under
one of the two minimum set-asides as described in subparagraphs (A) and (B) of
this paragraph. Regardless of an election that may be made under Section 42 of
the Code relating to income averaging, a Development will be required under the
Bond Regulatory and Land Use Restriction Agreement to meet one of the two
minimum set-asides described in subparagraphs (A) and (B) of this paragraph.
Any proposed market rate Units shall be limited to 140% of the area median
income and be considered restricted units under the Bond Regulatory and Land
Use Restriction Agreement for purposes of using Bond proceeds to construct such
Units.
(A) At least 20% of the Units within
the Development shall be occupied or held vacant and available for occupancy at
all times by persons or families whose income does not exceed 50% of the area
median income; or
(B) At least 40%
of the Units within the Development shall be occupied or held vacant and
available for occupancy at all times by persons or families whose income does
not exceed 60% of the area median income.
(2) The Development Owner must, at the time
of Application, indicate which of the two federal set-asides will apply to the
Development and must also designate the selected priority for the Development
in accordance with Tex. Gov't Code, §
1372.0321. Units
intended to satisfy set-aside requirements must be distributed equally
throughout the Development, and must include a reasonably proportionate amount
of each type of Unit available in the Development.
(3) No tenant qualifying under either of the
minimum federal set-asides shall be denied continued occupancy of a Unit in the
Development because, after commencement of such occupancy, such tenant's income
increases to exceed the qualifying limit. However, should a tenant's income, as
of the most recent determination thereof, exceed 140% of the applicable federal
set-aside income limit and such tenant constitutes a portion of the set-aside
requirement of this section, then such tenant shall only continue to qualify
for so long as no Unit of comparable or smaller size is rented to a tenant that
does not qualify as a Low-Income Tenant.
