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 - March 2017(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 annually by no later than January 30th of each year. Rents will be evaluated and approved based on submission of the Annual Rent Approval Request packet, which is comprised of two forms: 1) The Rent Request Form and 2) The Proposed Rent Schedule, and two attachments: 1) The most up to date utility allowance schedule or approved utility allowance letter from the Department and 2) A current rent roll (or current USR). 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 – January 2017 (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 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: 90 days after submission of the 10% Test (this includes properties also receiving Multifamily Direct Loan funds)
  • 4% HTC/Bond Developments: 90 days after expiration of the Certificate of Reservation
  • Multifamily Direct Loan program Developments (HOME, NHTF, NSP, TCAP programs): 90 days after loan closing

As of 2017, 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 Subchapter G of the Uniform Multifamily Rules, 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 (note that as of 2017, Minority Owned Business Reports are now part of the Construction Status Report for HTC developments only).

Minority Owned Business Report Form – January 2017 (DOC)

Ownership Transfers

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

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

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 - January 2017 (XLS)

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

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 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 – January 2017 (XLS)

Amendments (§10.405(a))

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 Award Activities Manual (Amendments to Application chapter) for instructions. Deadlines for submissions of Material Amendments are shown below.

Amendment Request Cover Sheet January 2017 (DOC)

Submit Amendment By:

Amendment Will Be Posted By:

For Board Meeting Date:

December 12, 2016

January 10, 2017

January 26, 2017

January 9, 2017

February 7, 2017

February 23, 2017

February 6, 2017

March 7, 2017

March 23, 2017

March 13, 2017

April 11, 2017

April 27, 2017

April 10, 2017

May 9, 2017

May 25, 2017

April 24, 2017

May 23, 2017

June 8, 2017

May 15, 2017

June 13, 2017

June 29, 2017

May 29, 2017

June 27, 2017

July 13, 2017

June 12, 2017

July 11, 2017

July 27, 2017

July 3, 2017

August 1, 2017

August 17, 2017

July 24, 2017

August 22, 2017

September 7, 2017

August 28, 2017

September 26, 2017

October 12, 2017

September 25, 2017

October 24, 2017

November 9, 2017

October 30, 2017

November 28, 2017

December 14, 2017

 

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 12, 2016

January 5, 2017

January 10, 2017

January 26, 2017

January 9, 2017

February 2, 2017

February 7, 2017

February 23, 2017

February 6, 2017

March 2, 2017

March 7, 2017

March 23, 2017

March 13, 2017

April 6, 2017

April 11, 2017

April 27, 2017

April 10, 2017

May 4, 2017

May 9, 2017

May 25, 2017

April 24, 2017

May 18, 2017

May 23, 2017

June 8, 2017

May 15, 2017

June 8, 2017

June 13, 2017

June 29, 2017

May 29, 2017

June 22, 2017

June 27, 2017

July 13, 2017

June 12, 2017

July 6, 2017

July 11, 2017

July 27, 2017

July 3, 2017

July 27, 2017

August 1, 2017

August 17, 2017

July 24, 2017

August 17, 2017

August 22, 2017

September 7, 2017

August 28, 2017

September 21, 2017

September 26, 2017

October 12, 2017

September 25, 2017

October 19, 2017

October 24, 2017

November 9, 2017

October 30, 2017

November 23, 2017

November 28, 2017

December 14, 2017

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 – March 2016 (DOC)

Right of First Refusal – 9% HTC Awards Only

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. A new section addressing ROFR requirements and the below forms packet has been added to the Post Award Activities Manual

ROFR Forms – January 2017 (XLS)

For organizations seeking to qualify as a Community Housing Development Organization (“CHDO”) for purposes of a ROFR a CHDO Certification Packet will be required. See the 2017 Community Housing Development Organization (“CHDO”) Certification Packet 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