10 Tex. Admin. Code § 23.40 - Contract for Deed (CFD) General Requirements

(a) Program funds may be utilized for Acquisition or refinance, and New Construction, of single family housing units occupied by the purchaser as shown on an executory contract for conveyance.

(b) The Department shall limit the availability of funds for CFD for a minimum of 60 days for Activities proposing to serve Households whose income does not exceed 60 percent AMFI, and for properties located in a Colonia as defined in Tex. Gov't Code § 2306.083.

(c) The Department will require a first lien position.

(d) Total Project costs, exclusive of Match funds, are limited to the amounts described in §23.27, Project Cost Limitations.

(e) The assistance to an eligible Household shall be in the form of a loan in the amount of the Direct Activity Costs excluding Match funds. The loan will be at zero percent interest and include deferral of payment and annual pro rata forgiveness with a term based on the federal affordability requirements as defined in 24 CFR § 92.254. For refinancing activities, the minimum loan term and affordability period is 15 years, regardless of the amount of HOME assistance.

(f) To ensure affordability, the Department will impose resale or recapture provisions established in this Chapter.

Notes

10 Tex. Admin. Code § 23.40

The provisions of this §23.40 adopted to be effective October 31, 2012, 37 TexReg 8486; amended to be effective January 5, 2014, 38 TexReg 9497; Adopted by Texas Register, Volume 40, Number 34, August 21, 2015, TexReg 5327, eff. 8/30/2015; Adopted by Texas Register, Volume 42, Number 30, July 28, 2017, TexReg 3760, eff. 8/3/2017; Adopted by Texas Register, Volume 45, Number 47, November 20, 2020, TexReg 8331, eff. 11/26/2020; Adopted by Texas Register, Volume 49, Number 12, March 22, 2024, TexReg 1904, eff. 3/28/2024; Adopted by Texas Register, Volume 50, Number 08, February 21, 2025, TexReg 0983, eff. 2/26/2025