34 Tex. Admin. Code § 190.2 - Allocation and Reservation System
(a) The
state's ceiling shall be determined for each calendar year by the executive
director based upon the most recent census estimate of the resident population
of the state published by the Bureau of the Census prior to the beginning of
such calendar year. The amount of the state ceiling shall be published on the
board's website in January each year and shall be updated on the site at least
weekly thereafter.
(b) On or after
October 5 of the year preceding the applicable program year, the board will
accept applications for reservation from issuers authorized to issue private
activity bonds. The board shall not grant a reservation to any issuer prior to
January 2 of the program year. If two or more issuers file an application for
reservation of the state ceiling in any of the categories described in
Government Code §
1372.022, the board
shall conduct a lottery establishing the priority order of each such
application for reservation. Once the priority order for all applications for
reservation filed on or before October 20 of the year preceding the applicable
program year is established, except as provided by Government Code §
1372.031(b)
and subject to Government Code §
1372.0321 and
Government Code §
1372.0231,
reservations for each issuer within the categories described in Government Code
§
1372.022(a)(2),
(3), (4), and (5) shall be granted in the
order of priority established by such lottery. If determined by staff as
necessary an additional lottery may be held immediately to stagger reservation
dates for such issuers; otherwise, reservations shall be staggered by priority
and then lot number. Each issuer of state voted issues granted a reservation
initially may participate in the additional lottery or shall be granted a
reservation date which is the first business day of the program year.
(c) The order of priority for reservations by
housing finance corporations in the category described in Government Code
§
1372.022(a)(1),
shall further be determined as provided in Government Code §
1372.032.
(1) The first category of priority shall
include those applications for a reservation filed by housing finance
corporations which filed an application for a reservation on behalf of the same
local population prior to September 1 of the previous calendar year, but which
did not receive a reservation during such year. Any such priority of an issuer
composed of more than one jurisdiction is not affected by the issuer's loss of
a sponsoring government unit and that unit's population base if the dollar
amount of the application has not increased.
(2) The second category of priority shall
include those applications for a reservation not included in the first category
of priority.
(3) Within each
category of priority, reservations shall be granted in reverse calendar year
order of the most recent closing of qualified mortgage bonds by each housing
finance corporation, with the most recent closing being the last to receive a
reservation and with those housing finance corporations that have never
received a reservation for mortgage revenue bonds being the first to receive a
reservation, and, in the case of closings occurring on the same date,
reservations shall be granted in an order determined by the board by lot. The
most recent closing applicable to:
(A) a
newly created housing finance corporation that was created by a local
government unit or local government units that had previously sponsored an
existing housing finance corporation or a disbanded housing finance
corporation, is the most recent closing of qualified mortgage bonds the
proceeds of which were available to the population of the housing finance
corporation;
(B) a housing finance
corporation sponsored by a local government unit that has participated in the
program of another housing finance corporation, is the most recent closing of
qualified mortgage bonds the proceeds of which were available to the population
of the housing finance corporation; and
(C) all other housing finance corporations,
is the most recent closing of qualified mortgage bonds by the housing finance
corporation. In no event will a housing finance corporation or its sponsoring
local government unit be allowed to achieve an advantage in the determination
of its last closing date by creating, dissolving, or withdrawing from a housing
finance corporation.
(d) The order of priority for reservations in
the category described in Government Code §
1372.022(a)(4)
shall further be determined as provided in Government Code §
1372.0321 and
Government Code §
1372.0231.
(1) The first category of priority shall
include those applications for a reservation for projects that:
(A) during the four-year period preceding the
date of the application, have:
(i) filed an
application for a low-income housing tax credit with the Texas Department of
Housing and Community Affairs; and
(ii) closed on a previous reservation of
bonds in accordance with Government Code §
1372.042, as
determined based on the date of allocation of those bonds; and
(B) require a subsequent issuance
of bonds to maintain compliance with the percentage requirement described in
Government Code §
1372.0321(e);
and
(C) have not previously applied
for a subsequent issuance of bonds under Government Code §
1372.0321(a).
(2) The second category of
priority shall include those applications for a reservation for:
(A) projects:
(i) in which 50% of the units are reserved
for families and individuals earning not more than 50% of the area median
family income and in which the maximum allowable rents are restricted to 30% of
50% of area median family income, minus an allowance for utility costs
authorized under the federal Low Income Housing Tax Credit Program;
and
(ii) the remaining 50% of the
residential units in the project are reserved for families and individuals
earning not more than 60% of the area median family income and in which the
maximum allowable rents are restricted to 30% of 60% of area median family
income, minus an allowance for utility costs authorized under the federal Low
Income Housing Tax Credit Program; or
(B) projects:
(i) in which 15% of the residential units in
the project are reserved for families and individuals earning not more than 30%
of the area median family income and in which the maximum allowable rents are
restricted to 30% of 30% of area median family income, minus an allowance for
utility costs authorized under the federal Low Income Housing Tax Credit
Program; and
(ii) the remaining 85%
of the residential units in the project are reserved for families and
individuals earning not more than 60% of the area median family income and in
which the maximum allowable rents are restricted to 30% of 60% of area median
family income, minus an allowance for utility costs authorized under the
federal Low Income Housing Tax Credit Program; or
(C) projects:
(i) in which 100% of the residential units in
the project are reserved for families and individuals earning not more than 60%
of or the area median family income and in which the maximum allowable rents
are restricted to 30% of 60% of area median family income, minus an allowance
for utility costs authorized under the federal Low Income Housing Tax Credit
Program; and
(ii) which are located
in a census tract in which the median income, based on the most recent
information published by the United States Bureau of the Census, is higher than
the median income for the county, metropolitan statistical area, or primary
metropolitan statistical area in which the census tract is located as
established by the United States Department of Housing and Urban Development;
or
(D) on June 1 and
after, projects that were submitted for the lottery, and are located in
counties, metropolitan statistical areas, or primary metropolitan statistical
areas with area median family income levels below or at the median family
income for the state according to the U.S. Department of Housing and Urban
Development.
(3) The
third category of priority shall include those applications for a reservation
for a project in which at least 80% of the units are reserved for families and
individuals earning not more than 60% of the area median family income and in
which the maximum allowable rents are restricted to 30% of 60% of area median
family income, minus an allowance for utility costs authorized under the
federal Low Income Housing Tax Credit Program.
(4) The fourth category of priority shall
include those applications for any other qualified residential rental
project.
(5) Within each category
of priority, reservations shall be granted in the order established by the
lottery subject to Government Code §
1372.0231.
(6) Owners of Low Income Housing Tax Credits
(LIHTC) and 501(c)(3) properties that issue through State agencies are
prohibited from having policies, procedures and/or screening practices which
have the effect of excluding applicants because they have Section 8 voucher or
certificate. The verification of such an exclusionary practice on the part of
the owner or manager by a state agency will be considered a violation and may
result in the owner's inability to participate in future housing programs of
the state.
(7) When determining the
priority level of an application established under Government Code §
1372.0321, the
applicant shall use the most current data available on October 1 of the year
preceding the program year in which allocation is being sought, unless
specifically otherwise provided in federal or state law or in this title. All
American Community Survey (ACS) data must be five year estimates, and any
reference to median income in this title shall be synonymous with median family
income unless otherwise specified.
(e) The order of priority for reservations in
the category described in Government Code §
1372.022(a)(5),
shall further be determined as provided in Government Code §
1372.033.
(f) If state ceiling becomes available on
August 15, it shall be available for all applications for reservations in the
order determined by the board by lot. If all applications have been offered a
portion of the available state ceiling then the board shall grant reservations
in the order in which the applications are received
(g) All applications for a reservation filed
after October 20 of the preceding year by any issuer for the issuance of bonds
shall be accepted by the board in their order of receipt.
(h) An application for a reservation for the
current program year may not be submitted and a reservation may not be granted
after November 15 of the program year.
(i) An issuer may refuse to accept a
reservation if the amount of state ceiling available is less than the amount
for which the issuer applied or for any amount if the reservation is granted
after September 23 of the program year.
(j) The amount of the state's ceiling that
has not been reserved prior to November 16 of the program year and any amount
previously reserved that becomes available on or after that date because of the
cancellation of a reservation or any other reason, may be designated, by the
board, as traditional carryforward for the carryforward purposes outlined in
the Code through submission of the application for carryforward and any other
required documentation. If the 150-day, 180-day, or 210-day period, as
applicable, expires on or after December 24th of a program year in which a
reservation was issued, an issuer is required to close on its bonds before
December 24th. However, if an issuer's applicable period expires after December
31st, the issuer must notify the board in writing before December 24th of their
intent to request non-traditional carryforward designation of the reservation
and with their expected bond closing date. The granting by the board of a
non-traditional carryforward designation through this described process, will
allow an issuer the remaining balance of their 150-day, 180-day, or 210-day
period, as applicable, to close on their bond by the expected closing date. If
any issuer makes this election and does not close the bonds on or before the
expected closing date, the amount of non-traditional carryforward designation
will be administered by the board in compliance with the requirements of the
Code.
(k) An issuer may submit an
application for carryforward to the board at any time during the year before
December 24th.
(l) Issuers will be
eligible for carryforward according to the priority classifications listed in
the Act, specifically Government Code §
1372.062.
(m) With respect to the amount of the state
ceiling set aside under Government Code §
1372.0231(a)(1) and
(3), applications are subject to review and
approval by board staff prior to receiving a certificate of
allocation.
(n) With respect to the
time period and amount of the state ceiling set aside under Government Code
§
1372.0231(a)(1),
should the Texas Department of Housing and Community Affairs (TDHCA) opt to
participate in the lottery, TDHCA shall submit residential rental project
applications to the board during the application period outlined in Government
Code §
1372.028. The board
shall include a number of lottery balls in the lottery on behalf of TDHCA equal
to the number of applications TDHCA submits that are eligible for participation
in the lottery. Prior to the date of the lottery, TDHCA will rank its eligible
applications according to the provisions established by TDHCA and shall provide
this ranking to the board. After the lottery, the board will assign the lottery
numbers drawn on behalf of TDHCA to TDHCA's eligible applications based upon
the rank provided by TDHCA, with the lowest lottery number being assigned to
the highest-ranking application. TDHCA applications submitted post-lottery are
ineligible for lottery numbers and may not receive a reservation ahead of any
other TDHCA eligible application with a lottery number.
(o) Until August 1 of the program year,
within the category described by Government Code §
1372.022(a)(5),
priority shall be granted to the Texas Economic Development Bank for projects
that the Texas Economic Development and Tourism Office determines meet the
governor's criteria for funding from the Texas Enterprise Fund, pursuant to the
requirements of Government Code §
1372.031(b).
(p) On the last business day of a program
year the Board may assign as carryforward unencumbered state ceiling to a state
agency or to an issuer that was created to act on behalf of the state at their
request and in the order received without a formal application process.
Unencumbered means any state ceiling that is not reserved or designated as
carryforward and for which no application for carryforward is
pending.
Notes
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