Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013 Page: 6,814
6747-6996 p. ; 28 cm.View a full description of this periodical.
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with a request for the preparation of Loan [loan] closing with the re-
quest for the Commitment or Reservation of Funds:
(1) A title commitment to issue a title policy that evidences
the property will transfer with no tax lien, child support lien, mechanics
or materialman's lien or any other restrictions or encumbrances that
impair the good and marketable nature of title to the ownership interest
and that the definition of Homeownership will be met. Commitments
that expire prior to execution of closing must be updated at closing and
must not have any adverse changes in order to close; and
(2) A good faith estimate that is, or letter from the lender
confirming that the loan terms and closing costs will be consistent with
the executed sales contract, the first lien mortgage loan requirements,
and the requirements of this chapter.
(c) Disbursement of funds. The Administrator [CA or RSP]
must comply all of the requirements described in paragraphs (1) - (10)
of this subsection, for a request for disbursement of funds to reim-
burse eligible costs incurred. Submission of documentation related to
the Administrator's [CA's or RSP's] compliance with requirements de-
scribed in paragraphs (1) - (10) of this subsection, may be required with
a request for disbursement:
(1) For construction costs that are a part of a Loan [elan]
subject to the requirements of this subsection, a down date endorse-
ment to the title policy not older than the date of the last disbursement
of funds or forty-five (45) days, whichever is later. For release of re-
tainage the down date endorsement must be dated at least forty (40)
[thiry (-30)] days after the date of construction completion;
(2) If applicable, up to 50 percent of Project funds for a
Project may be drawn before providing evidence of Match. Thereafter,
each Administrator [CA or RSP] must provide evidence of Match, in-
cluding the date of provision, in accordance with the percentage of
Project funds disbursed;
(3) The property inspection must be signed and dated by
the inspector and the Administrator or Developer [GA, RSP er Devel-
opment Owner];
(4) Certification that its fiscal control and fund accounting
procedures are adequate to assure the proper disbursal of, and account-
ing for, funds provided, no Person that would benefit from the award
of HOME funds has provided a source of Match or has satisfied the
Applicant's cash reserve obligation or made promises in connection
therewith; that each request for disbursement of HOME funds is for
the actual cost of providing a service and that the service does not vio-
late any conflict of interest provisions;
(5) Original, executed, legally enforceable Loan [loan]
documents for each assisted Household containing remedies adequate
to enforce any applicable affordability requirements. Original doc-
uments must evidence that such agreements have been recorded in
the real property records of the county in which the housing unit is
located and the original documents must be returned, duly certified as
to recordation by the appropriate county official. This provision is not
applicable for funds made available at the Loan [loan] closing;
(6) Expenditures must be allowable and reasonable in ac-
cordance with federal, state, and local rules and regulations. The De-
partment shall determine the reasonableness of each expenditure sub-
mitted for reimbursement. The Department may request Administrator
[GA or RSP] to make modifications to the disbursement request and is
authorized to modify the disbursement procedures set forth herein and
to establish such additional requirements for payment of HOME funds
to Administrator [GA or RSP] as may be necessary or advisable for
compliance with all program requirements;(7) The request for funds for Administrative costs must be
proportionate to the amount of Direct Project Costs requested or al-
ready disbursed;
(8) Table funding requests must be submitted to the Depart-
ment with complete documentation no later than ten (10) business days
prior to the anticipated Loan [loan] closing date. Such a request must
include a draft settlement statement, title company payee identification
information, the Administrator or Developer's [Development Owner's]
authorization for disbursement of funds to the title company, request
letter from title company to the Texas Comptroller with bank account
wiring instructions, and invoices for soft costs being paid at closing;
(9) For Activities involving Rehabilitation, include the
withholding of 10 percent of hard construction costs for retainage.
Retainage will be held until at least forty (40) [thirty (30)] days after
completion of construction and until submission of documentation
required for Project completion reports; and
(10) The final request for disbursement must be submitted
to the Department with support documentation no later than sixty (60)
days after the termination date of the Contract in order to remain in
compliance with Contract and eligible for future funding. The Depart-
ment shall not be obligated to pay for costs incurred or performances
rendered after the termination date of a Contract.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on September 23,
2013.
TRD-201304206
Timothy K. Irvine
Executive Director
Texas Department of Housing and Community Affairs
Earliest possible date of adoption: November 3, 2013
For further information, please call: (512) 475-3916
SUBCHAPTER E. CONTRACT FOR DEED
CONVERSION PROGRAM
10 TAC 23.50 - 23.52
The Texas Department of Housing and Community Affairs (the
"Department") proposes amendments to 10 TAC Chapter 23,
Single Family HOME Program, Subchapter E, 23.50 - 23.52,
concerning Contract for Deed Conversion Program. The pur-
pose of the proposed amendments is to revise language to con-
form the state HOME Rule with the federal HOME Investment
Partnerships Program (HOME) regulations at 24 CFR Part 92,
as amended on July 24, 2013, to add clarity to the State HOME
Rule, and to allow up to a total of $5,000 in additional costs for
site work and accessibility features.
FISCAL NOTE. Timothy K. Irvine, Executive Director, has deter-
mined that, for each year of the first five years the amendments
are in effect, enforcing or administering the amendments does
not have any foreseeable implications related to costs or rev-
enues of the state or local governments.
PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined
that, for each year of the first five years the amendments are in
effect, the public benefit anticipated as a result of the amend-
ments will be improved regulatory guidance to enhance the effi-38 TexReg 6814 October 4, 2013 Texas Register
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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/m1/68/: accessed May 7, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.