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Presentation, discussion, and possible action on a staff initiated waiver of 10 TAC ?13.11(c)(14)(I) for Developments that received funding from the Department's 2020 National Housing Trust Fund grant
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RECOMMENDED ACTION
recommendation
WHEREAS, federal regulations require that all National Housing Trust Fund (NHTF)-funded projects submit a cost certification prepared by a Certified Public Accountant (CPA), and HUD has clarified that such certifications must demonstrate that all costs are necessary and reasonable;
WHEREAS, the Department's rule at 10 TAC ?13.11(c)(14)(I) requires that the cost certification be submitted prior to the final disbursement of funds;
WHEREAS, federal regulation permits submission of the cost certification up to 120 days after final disbursement;
WHEREAS, the Development known as Balcones Terrace, sponsored by Foundation Communities, is nearing its NHTF expenditure deadline and has completed construction, but the Development's accounting firm has indicated they cannot execute the Department's existing cost certification form due to their perception of a conflict with national accounting standards; and
WHEREAS, staff is actively working with that firm to revise the cost certification form in a manner that satisfies both HUD guidance and professional accounting standards, and anticipates that resolution is forthcoming, but may not be completed prior to the expenditure deadline of August 12, 2025, and therefore staff is requesting a waiver to allow for the disbursement of these funds prior to the cost certification being received;
NOW, therefore, it is hereby
RESOLVED, that the Board approves a waiver of 10 TAC ?13.11(c)(14)(I) for Balcones Terrace to allow final disbursement of NHTF funds prior to receipt of the CPA cost certification, provided that the certification is submitted within 120 days following the final disbursement, in accordance with federal requirements.
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BACKGROUND
Balcones Terrace is an affordable housing...
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