1. (a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Appeal file--The written record of an appeal that contains the applicant's appeal; the responses, if any, of Department staff, and the executive director, and the final decision.
   2. (2) Applicant--A person who has submitted to the Department an application for Department funds or other assistance.
   3. (3) Application--The written request for Department funds or other assistance in the format required by the Department including any exhibits or other supporting material.
   4. (4) Board--The Governing Board of the Texas Department of Housing and Community Affairs.
   5. (5) Department--The Texas Department of Housing and Community Affairs.
   6. (6) Person--Any individual, partnership, corporation, association, unit of government, community action agency, or public or private organization of any character.
2. (b) Grounds. An Applicant for funding or other assistance from the Department may only appeal the disposition of the Application by the Board based on an action taken by the Board which was allegedly not made in accordance with the applicable rules. This Appeal process is available to any Applicant, including for tax exempt bonds and low income housing tax credits under 26 U.S.C. §42, except for low income housing tax credits which are subject to the State housing credit ceiling and which have a separate appeals process.
3. (c) Appeal to the Board. An Applicant must file a written Appeal with the Department not later than the seventh day after the date of the Board meeting at which the award decision appealed was made. The Applicant must specify the alleged error and provide a detailed explanation of the alleged error, including any supporting documentation. The specific rule allegedly violated must be cited, as well as an explanation of the manner in which the alleged error adversely affects the Applicant's ability to receive funds or other assistance. Upon receipt of the appeal, the executive director shall prepare a file for the Board to consider at the next regularly scheduled meeting of the Board. The Board may not consider any information submitted by the Applicant after the written Appeal. The Board will review the Appeal de novo and may consider any information properly considered by the Board in making its prior decision on the Application.
4. (d) Public Comment. The Board will hear public comment on the Appeal under its usual procedures. While public comment will be heard, persons making public comment are not parties to the Appeal and no rights accrue to them under this section or Appeal process. If a representative of a neighborhood group completed a witness affirmation form including their telephone number and spoke in support of or opposition to an Application at the Board meeting at which the Board made the decision appealed from, Department staff will telephone the representative not later than the seventh day before the date of the Board meeting at which the Board will consider the Appeal and advise the representative of the date, time, and place of the Board meeting and that an Appeal will be considered by the Board. This notice requirement is satisfied if the Department makes three attempts to reach one group representative by telephone and is unsuccessful.
5. (e) Possible Actions. In instances in which the Appeal if sustained by the Board would have resulted in an award to the Applicant, the Application shall be approved by the Board contingent on the availability of funds. If no funds are available in the current year's funding cycle, then the Applicant shall be awarded funds from the next year's available funding or from the pool of deobligated funds. In the case of private activity mortgage revenue bond programs, the Applicant shall be encouraged to reapply in the next year's funding cycle. If the Appeal is denied, the Department shall notify the Applicant of the decision, including the basis for denial.
6. (f) Final Decision. Appeals not submitted in accordance with this section will not be considered by the Board, unless the Board, in the exercise of its discretion, determines there is good cause to consider the appeal. The decisions of the Board are final.

Source Note:The provisions of this §1.8 adopted to be effective January 1, 2002, 26 TexReg 10864; amended to be effective June 24, 2003, 28 TexReg 4631.