Post Carryover Activities Manual
The Asset Management Division is responsible for monitoring and processing all post-carryover activities for developments involving Housing Tax Credits, HOME funds, Housing Trust Funds and Neighborhood Stabilization Program (NSP) funds.
The Post Carryover Activities Manual includes instruction for post carryover activities including, but not limited to, 10% Test, Construction Status Reports, Cost Certification, Amendments and Ownership Transfers. Required forms and spreadsheets are listed under each activity below. To ensure that you use the most current manual and forms, check this page frequently. Email list announcements will also be sent out as revisions to the manual are completed. If you haven’t already, be sure to join the TDHCA email list to receive these email updates.
UPDATE: The Post Carryover Activities Manual has been updated to include instructions for 10% Test (for 2012 awardees), Construction Status Report, LURA Origination, Amendments to the LURA, Cost Certification and Amendments to Application. Forms have also been updated and are located under each activity title below. Asset Management continues to work to incorporate Ownership Transfers, Right of First Refusal and Qualified Contract instructions and will notify Development Owners by email announcement when these processes have been incorporated into the manual.
10% Test (§10.402(g))
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.
LURA Origination (§10.402(i))
The Department will generate a Housing Tax Credit LURA for the Development Owner that 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 Carryover Activities Manual (LURA Origination chapter) for instructions on requesting this document. For the Development Owner’s benefit, LURA templates for allocations made in 2010, 2011 and 2012 are provided below for information purposes only.
Cost Certification (§10.402(j))
UPDATE: The forms required for Cost Certification submission have been updated and included in one Excel file. Development Owners should begin using the new forms immediately. However, the Department will continue to accept Cost Certification submissions in the old format until May 1, 2013. Cost Certifications due after May 1, 2013 must be submitted in the new format provided below.
Owners seeking approval for requests to change the site plan, improvements and all other representations of the application must follow Amendment process. Please see the updated Post Carryover Activities Manual (Amendments to Application chapter) for instructions.
All changes to any member of the development owner, except the limited partners under the syndicator, must be approved in advance by the Department. Ownership transfers will be processed according to the requirements in the most recently approved Qualified Allocation Plan (not the plan that was in effect when a development applied for tax credits).
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
- Qualified Contract Requirements (10 TAC, Chapter 10, Subchapter E, §10.408 - Secretary of State site)
- Qualified Contract Preliminary Request Procedures Manual (PDF) or (DOC)
- Qualified Contract Request Procedures Manual (PDF) or (DOC)
- Qualified Contract Excel – use with Qualified Contract Request Procedures Manual (XLS)
Right of First Refusal
This requirement applies to Land Use Restriction Agreements (“LURA”) that provide an incentive for owners to offer a right of first refusal to nonprofit organizations. 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.