1. (a) The Department may perform an onsite monitoring review of any low-income Development, and review and photocopy all documents and records supporting compliance with Departmental programs through the end of the Compliance Period or the end of the period covered by the LURA, whichever is later. The Development Owner shall permit the Department access to the Development premises and records.

2. (b) The Department will perform onsite monitoring reviews of each low-income Development. The Department will conduct:

   1. (1) The first review of HTC, Exchange, and TCAP Developments by the end of the second calendar year following the year the last building in the Development is placed in service;
   2. (2) The first review of all Developments, other than those described in subsection (b)(1) of this section, as leasing commences;
   3. (3) Subsequent reviews at least once every three (3) years during the Affordability Period;
   4. (4) A physical inspection of the Development including the exterior of the Development, Development amenities, and an interior inspection of a sample of Units;
   5. (5) Limited reviews of physical conditions, including follow-up inspections to verify completion of reported corrective action, may be conducted without prior notice (unless access to tenant units is required, in which case at least forty-eight (48) hours notice will be provided); and
   6. (6) Reviews, meetings, and other appropriate activity in response to complaints or investigations.

3. (c) The Department will perform onsite file reviews and monitor:

   1. (1) Low-income resident files in each Development, and review the Income Certifications;
   2. (2) The documentation the Development Owner has received to support the certifications;
   3. (3) The rent records; and
   4. (4) Any additional aspects of the Development or its operation that the Department deems necessary or appropriate.
4. (d) At times other than onsite reviews, the Department may request for review, in a format designated by the Department, information on tenant income and rent for each Low-Income Unit and may require a Development Owner to submit copies of the tenant files, including copies of the Income Certification, the documentation the Development Owner has received to support that certification, and the rent record for any low-income tenant.
5. (e) The Department will select the Low-Income Units and tenant records that are to be inspected and reviewed. Original records are required for review. The Department will not give Development Owners advance notice that a particular Unit, tenant record, or a particular year will be inspected or reviewed. However, the Department will give reasonable notice to the Development Owner that an onsite inspection or a tenant record review will occur so the Development Owner may notify tenants of the inspection or assemble original tenant records for review. If a credible complaint of fraud or other egregious alleged or suspected noncompliance is received, the Department reserves the right to conduct unannounced onsite monitoring visits.

Source Note:The provisions of this §10.618 adopted to be effective November 28, 2013, 38 TexReg 8410.