(a) This subchapter satisfies the requirement of Internal Revenue Code (the "Code") §42(m)(1)(B)(iii) to provide a procedure that will be followed for monitoring for noncompliance with the provisions of the Code and to notify the Internal Revenue Service (IRS) of such noncompliance. This subchapter is consistent with requirements established under applicable state and federal laws, rules, and regulations. The Department will monitor in accordance with this subchapter. Nothing in this subchapter serves to waive, alter, or amend the requirements of any duly recorded Land Use Restriction Agreement (LURA). A party to a LURA wishing to have the LURA amended must submit a formal request to the Department, and the Department will review any such request to determine if it is acceptable and, if acceptable, specify any appropriate requirements for, or conditions, or limitations on any such amendment. The Department monitors rental Developments receiving assistance under:
- (1) the Housing Tax Credit Program (HTC);
- (2) the HOME Investment Partnerships Program (HOME);
- (3) the Tax Exempt Bond Program (BOND);
- (4) the Housing Trust Fund Program (HTF);
- (5) the Tax Credit Assistance Program (TCAP);
- (6) the Tax Credit Exchange Program (Exchange); and
- (7) the Neighborhood Stabilization Program (NSP).
- (b) All Developments monitored by the Department are subject to the Department's enforcement rules, found in Chapter 60, Subchapter C of this title (relating to Administrative Penalties).
- (c) Compliance monitoring begins with the commencement of construction and continues to the end of the long term Affordability Period. The Compliance Division monitors to ensure Owners comply with the program rules and regulations, Texas Government Code, Chapter 2306, the LURA requirements and conditions, and representations imposed by the Application or award of funds by the Department. This subchapter does not address forms and other records that may be required of Development Owners by the IRS or other governmental entities, whether for purposes of filing annual returns or supporting Development Owner tax positions during an IRS or other governmental audit.
Source Note:The provisions of this §10.601 adopted to be effective December 27, 2012, 37 TexReg 9908.