Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Post Award Activities Manual

The Asset Management Division is responsible for monitoring and processing all post-award activities for developments involving Housing Tax Credits, HOME funds, Housing Trust Funds, and Neighborhood Stabilization Program (NSP) funds. This manual outlines the procedures and instructions for completing activities including, but not limited to, 10% Test, Construction Status Reports, Cost Certification, LURA Origination, LURA Amendments, Application Amendments, and Ownership Transfers. Development Owners will be updated through a LISTSERV announcement as changes or updates are made to the manual. You can join our TDHCA email list by clicking on the “Join our Email List” link on the left side of the TDHCA homepage.

Requests to process any of the above activities should come to the Department’s Asset Management Division by email (unless otherwise specified) to asset.management@tdhca.state.tx.us. The request will be directed to your Asset Manager and processed. Note that requests may be delayed or may not be fully processed if the subject Development has issues of uncorrected noncompliance outside of the Corrective Action Period or the Owner owes fees to the Department. Asset Managers have been assigned to each region and can answer any questions related to the post award activities detailed in this manual. To find your assigned Asset Manager, visit http://www.tdhca.state.tx.us/asset-management/contacts.htm and enter the county in which the development is located.

Post Award Activities Manual - Updated June 2019 (PDF)

HOME, NSP, and NHTF Rent Approval Requests

HOME, NSP, or NHTF Developments committed funds on or after August 23, 2013 on which construction has been completed are required by 24 CFR §92.252(f) to submit annual rent approval requests to their Asset Manager by no later than July 1st of each year. Rents will be evaluated and approved based on submission of the Annual Rent Approval Request packet, which is comprised of one form and five exhibits: The Rent Request Form and 1) Utility Allowance Information, 2) The most up to date utility allowance schedule or approved utility allowance letter from the Department, 3) An updated rent schedule, 4) A current copy of the rent/income tool or other documentation used to support the gross rents at the property, and 5) A current rent roll or Unit Status Report. Rents will be reviewed and approved within 30 days as long as all required items have been received. Owners should retain a copy of their executed approval letter onsite to be shown at the time of Compliance Monitoring visits. Questions related to the Annual Rent Approval process or forms can be directed to your Asset Manager.

HOME Rent Approval Tool – Updated March 2019 (XLSX)

Construction Status Reports

Construction Status Reports must be submitted by all multifamily developments (HOME, NHTF, TCAP, 9% HTC, 4% HTC/BOND) currently in construction. Reports are due by the 10th day of the month following each reporting quarter’s end (October 10th for July – September, January 10th for October – December, April 10th for January – March, and July 10th for April – June). The submission of construction status reports will continue on a quarterly basis until the entire development is complete as evidenced by 1) Certificates of Occupancy for each building, 2) An AIA G704, 3) The Final AIA G702/3 or equivalent. Submission of the initial quarterly report begins for each type of development as specified below:

  • 9% HTC Developments: Initial report due October 10th following the year of award (this includes properties also receiving Multifamily Direct Loan funds)
  • 4% HTC/Bond Developments: Initial report due with Post Bond Closing Documentation 60 calendar days following closing on the bonds
  • Multifamily Direct Loan program Developments (HOME, NHTF, NSP, TCAP programs): Initial report due 90 calendar days after loan closing

Construction status reports not submitted by the deadline must request an extension for late submission of the report. A fee of $2,500 will be assessed if an extension to the due date is not requested 30 days in advance of the deadline. Fees will increase, as published in as published in §11.901 of the Qualified Allocation Plan (Subchapter E – Fee Schedule, Appeals, and other Provisions), based on subsequent extension requests on the same activity. The Post Award Activities Manual will detail what items must be submitted for initial and subsequent reports (Minority Owned Business Reports are now part of the Construction Status Report for HTC developments only).

Minority Owned Business Report Form (DOC) - Updated March 2019

Ownership Transfers

Ownership transfers will be processed according to the requirements in the most recently approved Post Award and Asset Management Requirements Rules and outlined in the Post Award Activities Manual.

10% Test (§10.402(g)) – 9% HTC Awards Only

As published in the QAP for the applicable award year, but generally no later than July 1 of the year following the submission of the Carryover Allocation Document more than 10% of the Development Owner’s reasonably expected basis must have been incurred pursuant to Section 42(h)(1)(E)(i) and (ii) of the Code (as amended by The Housing and Economic Recovery Act of 2008) and Treasury Regulations, 1.42-6.

10% Test - Updated March 2019 (XLS)

LURA Origination (§10.402(i)) – 4% and 9% HTC Awards Only

A Land Use Restriction Agreement (LURA) for Housing Tax Credit Developments must be requested by the Owner before the end of the first year of a Development’s credit period.  The LURA will impose the income and rent restrictions identified in the Development’s final underwriting report and other representations made in the Application. Please see the updated Post Award Activities Manual (LURA Origination chapter) for instructions on requesting this document.

Cost Certification (§10.402(j)) – 4% and 9% HTC Awards Only

Cost Certification is due by January 15th of the year following the first year of the Credit Period for the Development. Should the deadline date fall on a weekend or holiday, the cost certification documentation is due the following business day. If the deadline cannot be met, a request for extension must be submitted and must include information related to why such extension is necessary.

Cost Certification Application – August 2019 (XLSM)

Amendments (§10.405(a))

Owners seeking approval for amendments and changes to the representations made in the application must follow the Amendment process. Please see the updated Post Award Activities Manual (Amendments to Application and Amendments to LURA chapters) for instructions. Deadlines for submissions of Material Amendments are shown below. The cover sheet below linked below can be used to double-check your amendment submission for required items and can be submitted with your amendment request.

Amendment Request Cover Sheet Updated March 2019 (DOC)

Submit Amendment By:

Amendment Will Be Posted By:

For Board Meeting Date:

December 3, 2018

January 1, 2019

January 17, 2019

January 7, 2019

February 5, 2019

February 21, 2019

February 4, 2019

March 5, 2019

March 21, 2019

March 11, 2019

April 9, 2019

April 25, 2019

April 8, 2019

May 7, 2019

May 23, 2019

May 13, 2019

June 11, 2019

June 27, 2019

June 10, 2019

July 9, 2019

July 25, 2019

July 22, 2019

August 20, 2019

September 5, 2019

August 26, 2019

September 24, 2019

October 10, 2019

September 23, 2019

October 22, 2019

November 7, 2019

October 21, 2019

November 19, 2019

December 5, 2019

 

Deadlines for submissions of Material LURA Amendments (also showing deadlines for public hearings) are shown below.

Submit Amendment By:

Public Hearing Should be Held By:

Amendment Will Be Posted By:

For Board Meeting Date:

December 3, 2018

December 26, 2018

January 1, 2019

January 17, 2019

January 7, 2019

January 30, 2019

February 5, 2019

February 21, 2019

February 4, 2019

February 28, 2019

March 5, 2019

March 21, 2019

March 11, 2019

April 4, 2019

April 9, 2019

April 25, 2019

April 8, 2019

May 2, 2019

May 7, 2019

May 23, 2019

May 13, 2019

June 6, 2019

June 11, 2019

June 27, 2019

June 10, 2019

July 3, 2019

July 9, 2019

July 25, 2019

July 22, 2019

August 14, 2019

August 20, 2019

September 5, 2019

August 26, 2019

September 19, 2019

September 24, 2019

October 10, 2019

September 23, 2019

October 17, 2019

October 22, 2019

November 7, 2019

October 21, 2019

November 13, 2019

November 19, 2019

December 5, 2019

Legal Document Requests

Owners seeking subordination agreements, LURA Riders, and other related legal documents from the Asset Management Division can now use the below form as a cover sheet when submitting requests to the appropriate Asset Manager. Please see the updated Post Award Activities Manual (Requests for Legal Documents) for instructions.

Legal Document Request Cover Sheet – Updated March 2019 (DOC)

Right of First Refusal – 9% HTC Awards Only

This requirement applies to 9% HTC Developments that elected to provide a right of first refusal to certain entities or organizations in exchange for competitive points during the Application process. The specific requirements under right of first refusal depend on the language used in the LURA describing either a “minimum purchase price” or “fair market value” of the property. The Post Award Activities Manual contains a section addressing ROFR requirements and the form packet is located below.

ROFR Forms – January 2019 (XLS)

CHDO Self-Certification Form – March 2019 (DOCX)

Organizations seeking to qualify as a Community Housing Development Organization (“CHDO”) for purposes of satisfying ROFR must complete a ROFR CHDO Certification Packet. See the 2019 Community Housing Development Organization (“CHDO”) Certification Packet to be used in the event of ROFR for more details.

Qualified Contract

Pursuant to §42(h)(6) of the Internal Revenue Code, after the 14th year of the compliance period, the owner of a development utilizing housing tax credits may request that the allocating agency find a buyer at the qualified contract price.

Department requirements and procedures for Qualified Contract