The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Other definitions may be found in Texas Government Code, Chapter 2306 or Chapter 20 of this title (relating to Single Family Programs Umbrella Rule).

1. (1) Affiliated Party--A Person with a contractual relationship with the Contract Administrator on a Contract with the Department.
2. (2) Application Submission Procedures Manual (ASPM)--The manual that sets forth the procedures, forms, and instructions for the completion and submission of an Application to the Department.
3. (3) CFR--Code of Federal Regulations.
4. (4) Commitment of Funds--Occurs when the Activity or a Project is approved by the Department and set up in the disbursement and information system established by U.S. Department of Housing and Urban Development (HUD).
5. (5) Control--The possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of any Person, whether through the ownership or voting securities, by contract or otherwise, including ownership of more than 50 percent of the General Partner interest in a limited partnership, or designation as a managing member of a limited liability company or managing General Partner of a limited partnership or any similar member.
6. (6) Development Site--The area, or if scattered site, areas on which the Development is proposed to be located.
7. (7) Direct Project Costs--The total of hard construction costs, demolition costs, aerobic septic systems, refinancing costs (as applicable), acquisition and closing costs, rental and utility subsidy and deposits, and Match funds.
8. (8) General Requirements--An allowance for the General Contractor's on-site overhead expenses. General Requirements shall be limited as prescribed in Chapter 10, Subchapter D of this title (relating to Underwriting and Loan Policy) and must follow the standards published by the Construction Specifications Institute.
9. (9) HOME Final Rule--The regulations with amendments promulgated at 24 CFR, Part 92 as published by HUD for the HOME Investment Partnerships Program at 42 U.S.C. §§12701 - 12839.
10. (10) Match--Funds contributed to a Project that meet the requirements of 24 CFR §§92.218 - 92.220. Match contributed to a Project or Activity does not include mortgage revenue bonds, HOME-match eligible projects, and cannot include any other sources of Department funding unless otherwise approved in writing by the Department.
11. (11) Person--Any individual, partnership, corporation, association, unit of government, community action agency, or public or private organization of any character.
12. (12) Persons with Special Needs--Individuals or categories of individuals determined by the Department to have unmet housing needs consistent with 42 U.S.C. §§12701, et seq. and as provided in the Consolidated Plan and may include any Households composed of one or more persons with alcohol and/or drug addictions, Colonia residents, Persons with Disabilities, elderly, victims of domestic violence, persons with HIV/AIDS, homeless populations, migrant farm workers, and public housing residents.

13. (13) Predevelopment Costs--Costs related to a specific eligible Project including:

    1. (A) Predevelopment housing project costs that the Department determines to be customary and reasonable, including but not limited to consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, and site control;
    2. (B) Pre-construction housing project costs that the Department determines to be customary and reasonable, including but not limited to, the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies and legal fees; and
    3. (C) Predevelopment costs do not include general operational or administrative costs.

14. (14) Principal--A Person, or Persons, that will exercise Control over a partnership, corporation, limited liability company, trust, or any other private entity. In the case of:

    1. (A) Partnerships: Principals include all General Partners, special limited partners, and Principals with ownership interest;
    2. (B) Corporations: Principals include any officer authorized by the board of directors to act on behalf of the corporation, including the president, vice president, secretary, treasurer, and all other executive officers, and each stock holder having a 10 percent or more interest in the corporation; and
    3. (C) Limited liability companies: Principals include all managing members, members having a 10 percent or more interest in the limited liability company or any officer authorized to act on behalf of the limited liability company.
15. (15) Project--A single housing unit with a unique physical address. A Project may also refer to an individual Project, Development, or site.
16. (16) Reservation System Participant (RSP)--Administrator whose executed written agreement allows for participation in the Reservation System.
17. (17) Service Area--The city(ies), county(ies) and/or place(s) identified in the Application and/or Contract that the CA or RSP will serve.
18. (18) Texas Minimum Construction Standard (TMCS)--The program standard used to determine the minimum acceptable housing condition for the purposes of rehabilitation, new construction, and acquisition.

19. (19) Third Party--A Person who is not:

    1. (A) an Applicant, CA, RSP, Borrower, General Partner, Developer, Development Owner, or General Contractor; or
    2. (B) an Affiliate, Affiliated Party to the Applicant, CA, Borrower, General Partner, Developer, Development Owner, or General Contractor; or
    3. (C) a Person receiving any portion of the administration, contractor fee, or developer fee.

Source Note:The provisions of this §23.2 adopted to be effective October 31, 2012, 37 TexReg 8476.