The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Any capitalized terms not specifically mentioned in this section shall have the meaning as defined in Tex. Gov't Code, Chapter 2306, §§141, 142, and 145 of the Internal Revenue Code, 24 CFR Part 91, Part 92, Part 93, and 2 CFR Part 200 and 10 TAC Chapter 11, the Qualified Allocation Plan.

1. (1) Annual Income or Annual Incomes--"Annual income" as defined at 24 CFR §5.609, which includes but is not limited to the list of income in HUD Handbook 4350, and specifically excludes those items listed in HUD's Updated List of Federally Mandated Exclusions from Income.
2. (2) Choice Limiting Activity--Any transfer of title or similar action that occurs prior to a Development obtaining environmental clearance after an application for federal funds (HOME and NSP) has been submitted. Choice Limiting Activities also include closing on loans including loans for interim financing, signing of a contract, and commencing construction.
3. (3) Construction Completion--That necessary title transfer requirements and construction work have been performed and the following documents have been issued for the Development: certificate(s) of occupancy (if New Construction), Certificate of Substantial Completion (AIA Form G704), and a Final Construction Inspection Letter from Department staff. In addition, for Developments not layered with Housing Tax Credits, Construction Completion means all modifications requested as a result of the Department's Final Construction Inspection were cleared as evidenced by receipt of the Closed Final Development Inspection Letter.
4. (4) Community Housing Development Organization (CHDO)--A private nonprofit organization that has experience developing and/or owning affordable rental housing and that meets the requirements in 24 CFR Part 92 for purposes of receiving HOME funds under the CHDO set-aside. In addition, a member of a CHDO's board cannot be a Principal of the development beyond his/her role as a board member of the CHDO or be an employee of the development team, and may not receive financial benefit other than reimbursement of expenses from the CHDO (e.g., a voting board member cannot also be a paid executive).
5. (5) Federal Affordability Period--The period commencing on the date of Construction Completion and ending on the date which is the required number of years as defined by the federal program from the date of Construction Completion.
6. (6) HOME Match-Eligible Unit--A Unit in the Development that is not assisted with HOME Program funds, but would qualify as eligible for Match under 24 CFR Part 92. Unless otherwise identified by the provisions in the Notice of Funding Availability (NOFA), TCAP Repayment Funds (TCAP RF) funds and matching contribution on NSP and NHTF Developments must be used on HOME-Match Eligible Units.
7. (7) Land Use Restriction (LURA) Term--The period commencing on the effective date of the LURA and ending on the date which is the greater of the loan term or 30 years. The LURA may include both Federal Affordability Period and State requirements.

8. (8) Matching contribution (Match)--A contribution to a Development from nonfederal sources that may be in the form of one or more of the following:

   1. (A) Cash contribution (grant), except for cash contributions made by investors in a limited partnership or other business entity subject to pass through tax benefits in a tax credit transaction or owner equity (including deferred developer fee);
   2. (B) Reduced fees or donated labor from certain eligible contractors, subcontractors, architects, attorneys, engineers, excluding any contributions from a party related to the Developer or Owner;
   3. (C) Net present value of yield foregone from a below market interest rate loan as described in HUD Community Planning and Development (CPD) Notice 97-03;
   4. (D) Waived or reduced fees from cities or counties not related to the Applicant in connection with the proposed Development;
   5. (E) Donated land or land sold by an unrelated third party at a price below market value, as evidenced by a third party appraisal.

9. (9) Relocation Plan--A residential anti-displacement and relocation assistance plan which:

   1. (A) Includes provisions consistent with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§4601-4655), implementing regulations at 49 CFR Part 24, and policy guidance in Real Estate Acquisition and Relocation Policy and Guidance (HUD Handbook 1378) and the TDHCA Relocation Handbook; and in some HOME and NSP funded developments Section 104(d) of the Housing and Community Development Act of 1974, as amended and 24 CFR Part 42 (as modified for NSP); and
   2. (B) Is in form and substance consistent with requirements of the Department.
10. (10) Section 234 Condominium Housing basic mortgage limits (234 Condo Limits)--The per-unit subsidy limits for all MFDL funding. These limits take into account whether or not a Development is elevator served and any local conditions that may make development of multifamily housing more or less expensive in a given metropolitan statistical area. If the high cost percentage adjustment applicable to the 234 Condo Limits for HUD's Fort Worth Multifamily Hub is applicable for all Developments that TDHCA finances through the MFDL Program, and confirmation will be included in the applicable NOFA.
11. (11) State Affordability Period--The LURA Term as described in the MFDL contract and loan documents and as required by Department in accordance with the State Act which is usually an additional period after the Federal Affordability Period.

12. (12) Surplus Cash--When the first lien mortgage is a federally insured HUD or FHA mortgage, any cash remaining:

    1. (A) After the payment of:

       1. (i) all sums due or currently required to be paid under the terms of any superior lien;
       2. (ii) all amounts required to be deposited in the reserve funds for replacement;
       3. (iii) operating expenses actually incurred by the borrower for the Development during the period with an appropriate adjustment for an allocable share of property taxes and insurance premiums;
       4. (iv) recurring maintenance expenses actually incurred by the borrower for the Development during the period;
       5. (v) all other obligations of the Development approved by the Department; and
    2. (B) After the segregation of an amount equal to the aggregate of all special funds required to be maintained for the Development; and

    3. (C) Excluding payment of:

       1. (i) all sums due or currently required to be paid under the terms of any subordinate liens against the property;
       2. (ii) any development fees that are deferred including those in eligible basis; and
       3. (iii) any payments or obligations to the borrower, ownership entities of the borrower, related party entities; any payment to the management company exceeding 5% of the effective gross income; incentive management fee; asset management fees; or any other expenses or payments that shall be negotiated between the Department and borrower.

Source Note:The provisions of this §13.2 adopted to be effective December 30, 2018, 43 TexReg 8414.