1. (a) The objectives of the Department in performing regular monitoring of affordable rental housing are:

   1. (1) To provide for monitoring that meets applicable requirements of:

      1. (A) The U. S. Department of Housing and Urban Development (HUD);
      2. (B) The U. S. Department of the Treasury (Treasury);
      3. (C) The Internal Revenue Service (the "IRS"); and
      4. (D) Applicable state laws and rules;
   2. (2) To enable the Department to report information to HUD, Treasury, the IRS, and the Governing Board, as required, regarding the condition and operations of such developments;
   3. (3) To enable the Department to communicate with responsible persons regarding the condition and operation of their developments and understand clearly, with a documented record, how they are performing in meeting their obligations;
   4. (4) To identify matters of noncompliance so that they can be appropriately addressed and to assist in targeting issues that may require compliance assistance education;
   5. (5) To ensure that responsible persons understand the compliance status of their developments and the implications of such status;
   6. (6) To articulate and communicate clear standards to promote the maintenance and operation of such developments in a manner that meets the high standards of the Department's affordable rental programs; and
   7. (7) To provide a transparent system whereby all interested parties, including tenants, community organizations, local governmental entities, and the affordable housing industry, may find accountability, consistency, and an awareness of the high quality standards of affordable housing in the State of Texas.

2. (b) This subchapter applies to the monitoring of affordable rental housing under the programs described in paragraphs (1) - (7) of this subsection:

   1. (1) The Housing Tax Credit Program (HTC);
   2. (2) The HOME Investment Partnerships Program (HOME);
   3. (3) The Tax Exempt Bond Program (Bond);
   4. (4) The Housing Trust Fund Program (HTF);
   5. (5) The Tax Credit Assistance Program (TCAP);
   6. (6) The Tax Credit Exchange Program (Exchange); and
   7. (7) The Neighborhood Stabilization Program (NSP).
3. (c) There are two key aspects of ongoing monitoring activity, the physical condition of the developments and whether they are being operated in documented compliance with program requirements.
4. (d) The results of the Department's monitoring activities will be timely and properly documented.
5. (e) The Department may contract with an independent third party to monitor a Development during its construction or rehabilitation and during its operation for compliance with any conditions imposed by the Department in connection with the award of any Department funds, including allocations of housing tax credits, and appropriate state and federal laws.

Source Note:The provisions of this §10.601 adopted to be effective November 28, 2013, 38 TexReg 8410.