title
Presentation, discussion, and possible action on a staff-initiated waiver of 10 TAC ?11.204(15) related to HOME Match Requirements for certain Tax-Exempt Bond Developments
end
RECOMMENDED ACTION
recommendation
WHEREAS, the Department annually receives HOME Investment Partnerships Program (HOME) funding from the U.S. Department of Housing and Urban Development (HUD), and is required to match that funding at 25% using non-federal funds that contribute towards housing that would otherwise be HOME-eligible;
WHEREAS, proceeds from Tax-Exempt Bonds may be used as HOME Match funding, and accordingly, 10 TAC ?11.204(15) of the 2024 Qualified Allocation Plan (QAP) requires that all Tax-Exempt Bond Developments provide HOME Match Units unless the bonds were issued through a local issuer and the local HOME Participating Jurisdiction intended to claim those bond proceeds as Match;
WHEREAS, Developments funded with Tax-Exempt Bonds must close on financing within 180 days of the bond reservation, and the additional administrative burden of the HOME Match requirement could put some Developments at risk of not meeting this deadline, which staff has determined to be an unacceptable risk;
WHEREAS, this risk is significantly mitigated for Developments for which the Department is providing Multifamily Direct Loan Funding (MFDL), as those Developments must already provide Match Units; and
WHEREAS, the Department will generate a significant amount of HOME Match by requiring Developments that include MFDL funding to comply with 10 TAC ?11.204(15);
NOW, therefore, it is hereby
RESOLVED, that the staff-initiated waiver of 10 TAC ?11.204(15) for all Tax-Exempt Bond Development except those that include Department MFDL funds is hereby approved.
end
BACKGROUND
The Department annually receives HOME funding from HUD and is required to match that funding at 25% using non-federal funds that contribute towards housing that would otherwise be HOME-eligible. Failure to meet this req...
Click here for full text