1. (a) Applicability. For participants of the Department's Multifamily HOME Direct Loan program, where Commitment of Funds occurred on or after August 23, 2013, the Department is required by 24 CFR §92.252(f) to review and approve or disapprove HOME/NSP rents on an annual basis. The Department is required by 24 CFR 93.302(c)(2) to review and approve or disapprove NHTF rents on an annual basis. Development Owners must submit documentation for the review of HOME/NSP/NHTF rents by no later than January 30th of each year as further described in the Post Award Activities Manual.
2. (b) Documentation for Review. The Department will furnish an Annual Rent Approval Request packet for this purpose that will include a request for Development information and an Owner's proposed rent schedule and will require submission of a current rent roll and an approved utility allowance letter from the Department's Compliance Division. The Department may request additional documentation to perform a determination, as needed, including but not limited to annual operating statements, market surveys, or other information related to determining whether rents are sufficient to maintain the financial viability of a project or are in compliance with maximum rent limits.
3. (c) Review Process. Rents will be approved or disapproved within 30 days of receipt of all items required to be submitted by the Development Owner, and will be issued in the form of a signed letter from the Asset Management Division. Development Owners must keep copies of all approval letters on file at the Development site to be reviewed at the time of Compliance Monitoring reviews.
4. (d) Compliance. Development Owners for whom this section is applicable are subject to compliance under §10.622 under Subchapter F and may be subject to penalties under §10.624. Approval of rents by the Asset Management Division will be limited to a review of the documentation submitted and will not guarantee compliance with the Department's rules in Subchapter F or otherwise absolve an Owner of any past, current, or future non-compliance related to Department rules, guidance, Compliance Monitoring visits, or any other rules or guidance to which the Development or its Owner may be subject.

Source Note:The provisions of this §10.403 adopted to be effective January 5, 2017, 41 TexReg 10569.