1. (a) Eligible activities are limited to the acquisition or acquisition and Rehabilitation, Reconstruction, or New Construction of single family housing units.
2. (b) A new Manufactured Housing Unit (MHU) is an eligible property type for acquisition only. An MHU is not an eligible property type for Rehabilitation.
3. (c) The Household's income must not exceed 60 percent area median family income (AMFI) and the Household must complete a homebuyer counseling program/class.
4. (d) The Department will require a first lien position.

5. (e) Direct Project Costs, exclusive of Match funds, are limited to:

   1. (1) acquisition and closing costs: $35,000. In the case of a contract for deed conversion housing unit that involves the acquisition of a loan on an existing MHU and/or the loan for the associated land, the Executive Director may grant an exception to exceed this amount, however, the Executive Director will not grant an exception to exceed $40,000 of assistance;
   2. (2) Reconstruction and New Construction of site-built housing: the lesser of $78 per square foot or $85,000, or for Households of six or more Persons the lesser of $78 per square foot or $90,000;
   3. (3) replacement with an MHU: $65,000; and
   4. (4) rehabilitation that is not Reconstruction: $40,000.
6. (f) In addition to the Direct Project Costs allowable under subsection (e) of this section, up to $5,000 will be allowed in Direct Project Costs for additional sitework related to accessibility features if the house will be located more than 50 feet from the nearest paved roadway or if the house is being elevated above the floodplain.

7. (g) Project soft costs are limited to:

   1. (1) acquisition and closing costs: no more than $1,500 per housing unit;
   2. (2) Reconstruction or New Construction: no more than $9,000 per housing unit;
   3. (3) replacement with and MHU: no more than $3,500 per housing unit; and
   4. (4) rehabilitation that is not Reconstruction: $5,000 per housing unit. This limit may be exceeded for lead-based remediation and only upon prior approval of the Division Director. The costs of testing and assessments for lead-based paint are not eligible Project soft costs for housing units that are reconstructed or if the existing housing unit was built after December 31, 1977.
8. (h) Funds for administrative costs are limited to no more than 4 percent of the Direct Project Costs, exclusive of Match funds.
9. (i) The assistance to an eligible Household shall be in the form of a loan in the amount of the Direct Project Costs excluding Match funds. The loan will be at zero percent interest and include deferral of payment and annual pro-rata forgiveness with a term based on the federal affordability requirements as defined in 24 CFR §92.254.
10. (j) Any forgiveness of the Loan occurs upon the anniversary date of the Household's continuous occupancy as its Principal Residence and continues on an annual pro-rata basis until maturity of the Loan.
11. (k) To ensure affordability, the Department will impose resale and recapture provisions established in this chapter.
12. (l) For Reconstruction and New Construction, site-built housing units must meet or exceed the 2000 International Residential Code and all applicable local codes and standards. In addition, housing that is Rehabilitated under this chapter must meet the Texas Minimum Construction Standards (TMCS) and all other applicable local codes, rehabilitation standards, ordinances, and zoning ordinances in accordance with the HOME Final Rule. Housing units that are provided assistance for acquisition only must meet all applicable state and local housing quality standards and code requirements. In the absence of such standards and requirements, the housing units must meet the Housing Quality Standards (HQS) in 24 CFR §982.401.

Source Note:The provisions of this §23.51 adopted to be effective October 31, 2012, 37 TexReg 8490.