1. (a) If a Development's LURA requires the material participation of a non-profit or Historically Underutilized Business (HUB), the Department will confirm whether this requirement is being met throughout the development phase and ongoing operations of the Development. Owners are required to maintain sufficient documentation to evidence that a non-profit or HUB so participating is in good standing with the Texas Comptroller of Public Accounts, Texas Secretary of State and/or IRS as applicable and that it is actually materially participating in a manner that meets the requirements of the IRS. Documentation may be reviewed during onsite visits or must be submitted to the Department upon request.
2. (b) If an Owner wishes to change the participating non-profit or HUB, prior written approval from the Department is necessary. The Annual Owner's Compliance Report also requires Owners to certify to compliance with this requirement. In addition, the IRS will be notified if the non-profit is not materially participating on a HTC Development during the Compliance Period.
3. (c) The Department does not enforce partnership agreements or other agreements between third parties or determine fund distributions of partnerships. These disputes are matters for a court of competent jurisdiction or other agreed resolution among the parties.

Source Note:The provisions of this §10.620 adopted to be effective November 28, 2013, 38 TexReg 8410.