Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013 Page: 6,807
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(9) determine the income eligibility of a Household using
the "Annual Income" as defined at 24 CFR 5.609;
(10) except for Single Family Development, complete an
updated income eligibility determination of a Household if more than
six (6) months has elapsed from the date of certification and the date the
HOME assistance is provided to the Household. For Single Family De-
velopment, complete income eligibility determination of a Household
if more than six (6) months has elapsed from the date of certification
and the date the contract to purchase the housing unit is executed with
the Household;
(11) for single family Activities involving construction,
perform initial inspection in accordance with Chapter 20 of this title
(relating to Single Family Programs Umbrella Rule) [and at least
four 4) progress inspections]. Property inspections must include
photographs of the front and side elevation of the housing unit and at
least one picture of the kitchen, family room, one of the bedrooms and
one of the bathrooms. The inspection must be signed and dated by the
inspector and the Administrator [GA or RSP];
(12) submit requests for the Commitment or Reservation
of Funds, Loan [loan] closing preparation, and disbursements and all
required information and verification documentation in the Housing
Contract System. A request will not be reviewed by the Department un-
til the Administrator or Developer [A RSR, r Development Owner]
has submitted all required documentation. If, during review, the De-
partment identifies administrative deficiencies [Administrative Defi-
ciencies], the Department will allow a cure period of ten (10) busi-
ness days beginning at the start of the first business day following
the date the Administrator or Developer [A RSP or Development
Owner] is notified of the deficiency. If any administrative deficien-
cies [Administrati-ve Deficiency] remain after the cure period, the De-
partment, in its sole discretion, shall disapprove the request. Disap-
proved requests will not be considered sufficient to meet the perfor-
mance benchmark and shall not constitute a Reservation of Funds;
(13) not proceed or allow a contractor to proceed with
construction, including demolition, on any Project or development
[Development] without first completing the required environmental
clearance procedures, preconstruction conference and receiving notice
to proceed, if applicable, and execution of grant agreement or Loan
[loan] closing with the Department, whichever is applicable;
(14) submit any Program Income received by the
Administrator or Developer [GA RSP er Development Owner] to
the Department within ten (10) business days of receipt. Return
any refunds to the Department's accounting division and include a
written explanation of the return of funds, the Contract number, name
of Administrator or Developer [GA RSR er Deveopment Owner],
Project address and Project number referenced on the check;
(15) submit required documentation, for project comple-
tion reports no later than sixty (60) days after the completion of the
Project;
(16) for Contract awards, submit certificate of Contract
Completion within ten (10) business days of the Department's request;
(17) submit to the Department reports or information re-
garding the operations related to HOME funds provided by the Depart-
ment; and
(18) if required by state or federal law, place the appropri-
ate bonding requirement in any contract or subcontract entered into by
the Administrator or Developer [GA, RS or Development Owner] in
connection with a HOME award.
23.29. Resale and Recapture Provisions.(a) The Department has elected to utilize the recapture provi-
sion under 24 CFR 92.254(a)(5)(ii) as its primary method of recaptur-
ing HOME funds.
(b) The Department has established the recapture provisions
described in paragraphs (1) - (4) of this subsection to ensure afford-
ability as defined in 24 CFR 92.254(a)(5)(ii).
(1) In the event that a federal affordability period is re-
quired and the assisted property is rented or leased, or otherwise ceases
to be the Principal Residence of the Household, the forgiveness of the
Loan, if applicable, will cease and the entire HOME investment is sub-
ject to recapture.
(2) In the event that a federal affordability period is re-
quired and the unit is sold, including through a short sale or foreclo-
sure, prior to the end of the affordability period, the Department will
recapture the shared net proceeds available based on the requirements
of 24 CFR 92.254 and as outlined in the State's One Year Action
[Consolidated] Plan.
(3) The Household can sell the unit to any willing buyer at
any price. In the event of sale to a subsequent low-income purchaser of
a HOME-assisted homeownership unit, the low-income purchaser may
assume the existing HOME Loan and recapture obligation entered into
by the original buyer if no additional HOME assistance is provided to
the subsequent homebuyer. In cases in which the subsequent home-
buyer needs HOME assistance in excess of the balance of the original
HOME Loan, the HOME subsidy (the direct subsidy as described in 24
CFR 92.254) to the original homebuyer must be recaptured. A sep-
arate HOME subsidy must be provided to the new homebuyer, and a
new affordability period must be established based on that assistance
to the buyer.
(4) If there are no net proceeds from the sale, no repayment
will be required of the Household and the balance of the Loan [loan]
shall be forgiven as outlined in the State's applicable One Year Action
[Consolidated] Plan.
(c) The Department has established the resale provisions
described in paragraphs (1) - (7) of this subsection, in the event
that the Department must impose the resale provisions of 24 CFR
92.254(a)(i).
(1) Resale is defined as the continuation of the affordabil-
ity period upon the sale or transfer, rental or lease, refinancing, or the
initial Household is no longer occupying the property as their Principal
Residence.
(2) In the event that a federal affordability period is re-
quired and the assisted property is rented or leased, or is otherwise
ceases to be the Principal Residence of the initial Household, the entire
HOME investment must be repaid.
(3) In the event that a federal affordability period is re-
quired and the assisted property is sold, foreclosed, or transferred in
lieu of foreclosure to a qualified low income buyer at an affordable
price, the HOME Loan [loan] balance shall be transferred to the subse-
quent qualified buyer and the affordability period shall remain in force
to the extent allowed by law.
(4) The resale provisions shall remain in force from the
date of Loan [tean] closing until the expiration of the required afford-
ability period.
(5) The Household is required to sell the home at an af-
fordable price to a reasonable range of low income homebuyers that
will occupy the home as their Primary Residence. Affordable to a rea-
sonable range of low-income buyers is defined as targeting householdsPROPOSED RULES October 4, 2013 38 TexReg 6807
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Texas. Secretary of State. Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013, periodical, October 4, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth342082/m1/61/: accessed May 7, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.