1. (a) The maximum amount available for allocation of Supplemental Credits will be $5,000,000. This maximum may not provide sufficient credits to fully fund all requests for Supplemental Allocations. If there are any Supplemental Credits still available after all requests have been considered, the remainder will be transferred to the 2022 Competitive Housing Tax Credit ceiling after the Board's approval of the Supplemental Allocation awards. Applications for which a request for Supplemental Credits was submitted will not be eligible to receive an allocation from the 2022 Competitive Housing Tax Credit ceiling.
2. (b) Maximum Supplemental Request Limit for any given Development. Supplemental Allocations are limited to the increase in eligible costs. Supplemental Allocations will not be awarded for costs that were excluded from basis in the underwriting of the original Application. An Applicant may not request more than 7% more credits than their Original allocation. For all requests, the Department will consider the amount in the funding request of the Application to be the amount of Housing Tax Credits requested and will reduce the Applicant's request to the maximum allowable under this subsection through the underwriting process. (§2306.6711(b)).
3. (c) Increase in Eligible Basis (30% Boost). Applications having received an increase in Eligible Basis in their Original Application are determined by the Department, on the basis of having been previously determined eligible for this purpose, to be eligible for the basis boost for the Supplemental Allocation. However, staff will not recommend a Supplemental Allocation that would cause the Development to be over sourced, as determined by the Department, in which case a credit amount necessary to fill the gap in financing will be recommended. In no instance will the boost exceed more than the amount of credits required to create the HTC rent-restricted Units.

Source Note:The provisions of this §11.1003 adopted to be effective December 23, 2021, 46 TexReg 8589.