1. (a) Intent to Request a Supplemental Allocation. Only those Applicants who submit an Intent to Request a Supplemental Allocation form to the Department by the deadline specified in §11.1002 of this subchapter (relating to Program Calendar for Supplemental Housing Tax Credits) are eligible to submit a Request for Supplemental Allocation. The Intent to Request a Supplemental Allocation must include at a minimum, the application name and number, the year of the award, the subregion and an estimate of the amount of Supplemental credits being requested.
2. (b) Request for Supplemental Allocation. Requests for Supplemental Allocations must be received by the deadline specified in §11.1002 of this subchapter in the format required by the Department. Changes in the amount of the Supplemental credits requested between submission of an Intent to Request a Supplemental Allocation and the actual Request for Supplemental Allocation are permitted.

3. (c) This section identifies the general allocation process and the methodology by which awards under the Supplemental Credit Ceiling are made.

   1. (1) Regional Allocation Formula. After making adjustments for the At-Risk and USDA Set-Asides referenced in §11.1004(b) of this subchapter, the Department shall initially make available in each Rural Area and Urban Area of each Uniform State Service Region (subregion) Supplemental Credits consistent with the Regional Allocation Formula developed in compliance with Tex. Gov't Code §2306.1115; however, consistent with the total amount available being significantly less than the Credit Ceiling, the Department shall initially make available in each Rural Area and Urban Area of each Uniform State Service Region (subregion) Supplemental Credits in an amount not less than $40,000.
   2. (2) Award Recommendation Methodology and Collapse. The methodology described in §11.6(3) of this chapter (relating to Award Recommendation Methodology) will apply to the Supplemental HTC credit allocations. Awards of Supplemental Allocations may be made prior to completion of the Underwriting evaluation provided for in §11.1008 of this subchapter (relating to Supplemental Credit Applications Underwriting and Loan Policy), in which case the award will be made conditionally. Any conditionally awarded Supplemental Allocations may, among other things, have the amount of their Supplemental Allocation subsequently reduced or have other conditions placed on it. In the event of a tie between two or more Applications, the tie breakers in §11.7 of this chapter (relating to Tie Breaker Factors) will be utilized.
   3. (3) Supplemental Credit Selection Criteria. The final score from the Original Application will be utilized for ranking purposes of the Supplemental Credit Applications.
   4. (4) Third Party Requests for Administrative Deficiency. Due to the nature of the Supplemental Credit process and reliance on the Original Application and scores, the Third Party Request for Administrative Deficiency process will not be utilized during the Supplement Allocation process under this subchapter.

Source Note:The provisions of this §11.1005 adopted to be effective December 23, 2021, 46 TexReg 8589.