The Executive Director or authorized designee may approve amendments to loan terms prior to closing as described in paragraphs (1) - (6) of this section. Board approval is necessary for any other changes prior to closing.

1. (1) Extensions of up to six months to the loan closing date required in §13.11(e) of this chapter (relating to Post-Award Requirements). An Applicant must document good cause, which includes but is not limited to delays caused by circumstances outside the control of the applicant or constraints in arranging a multiple source closing. An extension will not be available if an Applicant has:

   1. (A) Failed to timely begin or complete processes required to close; including

      1. (i) finalizing all equity and debt financing; or
      2. (ii) the environmental review process; or
   2. (B) Made changes to the Development that require additional underwriting by the Department without sufficient time to complete the review;
2. (2) Changes to the loan maturity date to accommodate the requirements of other lenders or to maintain parity of term;
3. (3) Extensions of up to 12 months to the construction completion date or receipt of a Closed Final Development Inspection Letter date required in §13.11(h) or (i), respectively, based on documentation that the extension is necessary to complete construction and that there is good cause for the extension. Such a request will generally not be approved prior to initial loan closing;
4. (4) Changes to the loan amortization or interest rate that cause the annual repayment amount to decrease less than 20% or any changes to the amortization or interest rate that increase the annual repayment amount;
5. (5) Decreases in the Direct Loan amount, provided the decrease does not jeopardize the financial viability of the Development. Increases will generally not be approved unless the Applicant competes for the additional funding under an open NOFA;
6. (6) Changes to other loan terms or requirements as necessary to facilitate the loan closing without exposing the Department to undue financial risk.

Source Note:The provisions of this §13.12 adopted to be effective December 30, 2018, 43 TexReg 8414.