Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013 Page: 6,816
6747-6996 p. ; 28 cm.View a full description of this periodical.
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(j) Any forgiveness of the Loan occurs upon the anniversary
date of the Household's continuous occupancy as its Principal Resi-
dence and continues on an annual pro rata basis until maturity of the
Loan.
(k) To ensure affordability, the Department will impose resale
and recapture provisions established in this chapter.
(1) For Reconstruction and New Construction, site-built hous-
ing units must meet or exceed the 2000 International Residential Code
and all applicable local codes and standards. In addition, housing that
is Rehabilitated under this chapter must meet the Texas Minimum Con-
struction Standards (TMCS) and all other applicable local codes, reha-
bilitation standards, ordinances, and zoning ordinances in accordance
with the HOME Final Rule. Housing units that are provided assistance
for acquisition only must meet all applicable state and local housing
quality standards and code requirements. In the absence of such stan-
dards and requirements, the housing units must meet the Housing Qual-
ity Standards (HQS) in 24 CFR 982.401.
23.52. Contract for Deed Conversion (CFDC) Administrative Re-
quirements.
(a) Commitment or Reservation of Funds. The Administrator
[Contract Administrator (A) or Reseration System Patiipant
(RSP)] must submit true and correct information, certified as such,
with a request for the Commitment or Reservation of Funds:
(1) head of Household name and address of housing unit
for which assistance is being requested;
(2) a budget that includes the amount of Project funds spec-
ifying the acquisition costs, construction costs, soft costs and adminis-
trative costs requested, a maximum of 5 percent of hard construction
costs for contingency items, proposed Match to be provided, evidence
that Project and soft cost limitations are not exceeded, and evidence
that any duplication of benefit is addressed;
(3) verification of environmental clearance;
(4) a copy of the Household's intake application on a form
prescribed by the Department;
(5) certification of the income eligibility of the Household
signed by the Administrator [CA or RSP] and all Household members
age 18 or over, and including the date of the income eligibility deter-
mination. In instances the total Household income is within $3,000 of
the 80 percent AMFI, all documentation used to determine the income
of the Household;
(6) identification of Lead-Based Paint (LBP);
(7) for housing units located within the 100-year flood-
plain, a quote for the cost of flood insurance and certification from the
Household that they understand the flood insurance requirements;
(8) if applicable, documentation to address or resolve any
potential Conflict of Interest, identity of interest, duplication of benefit,
or floodplain mitigation;
(9) appraisal which includes post rehabilitation or recon-
struction improvements for Projects involving construction; and
(10) any other documentation necessary to evidence that
the Project meets the program requirements.
(b) Loan closing. The Administrator [~ or RSP] must submit
the documents described in paragraphs (1) - (4) of this subsection, with
a request for the preparation of Loan [lean] closing with the request for
the Commitment or Reservation of Funds:
(1) a title commitment to issue a title policy not older than
ninety (90) days when submitted for a Commitment of Funds that ev-idences the property will transfer with no tax lien, child support lien,
mechanic's or materialman's lien or any other restrictions or encum-
brances that impair the good and marketable nature of title to the own-
ership 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;
(2) in the instances of replacement with an MHU, informa-
tion necessary to draft Loan [loan] documents and issue Statement of
Ownership and Location (SOL);
(3) life event documentation, as applicable, and all infor-
mation necessary to prepare any applicable affidavits such as marital
status and heirship; and
(4) A copy of the recorded contract for deed and a current
payoff statement.
(c) Disbursement of funds. The Administrator [CA or RSP]
must comply all of the requirements described in paragraphs (1) - (11)
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) - (11) of this subsection may be required with
a request for disbursement:
(1) for construction costs, a down date endorsement 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 retainage the
down date endorsement must be dated at least forty (40) [thirty (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) property inspections, including 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 with date and property address reflected on each photo. The
inspection must be signed and dated by the inspector and Administrator
[CA or RSP];
(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 [lean]
documents, and statement of location, as applicable, for each assisted
Household containing remedies adequate to enforce any applicable
affordability requirements. Original documents 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 the Adminis-
trator or Developer [GA, RS r Development Owner] to make mod-38 TexReg 6816 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/m1/70/: accessed May 7, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.