All Applicants and Applications must submit or comply with this section.

1. (1) An Application for Community Housing Development Organization (CHDO) certification.

2. (2) If the total of Department loans equals more than 50 percent of the total development cost, except for developments also financed with U.S. Department of Agriculture (USDA) funds, the Applicant must provide:

   1. (A) evidence of a line of credit or equivalent tool equal to at least 10 percent of the total development cost from a financial institution that is available for use during the proposed development activities; or
   2. (B) a letter from a third party Certified Public Accountant (CPA) verifying the capacity of the owner or developer to provide at least 10 percent of the total development cost as a short term loan for development; and
   3. (C) a letter from the developer's or owner's bank(s) confirming funds amounting to 10 percent of the total development cost are available.

3. (3) A proposed development plan that is consistent with the requirements of this chapter, all other federal and state rules, and includes:

   1. (A) a floor plan and front exterior elevation for each proposed unit which reflects the exterior building composition;
   2. (B) a FEMA Issued Flood Map that identifies the location of the proposed site(s);
   3. (C) letters from local utility providers, on company letterhead, confirming each site has access to the following services: water and wastewater, sewer, electricity, garbage disposal and natural gas, if applicable;
   4. (D) documentation of site control of each proposed lot: A recorded warranty deed with corresponding executed settlement statement; or a contract or option for the purchase of the proposed lots that is valid for at least one hundred-twenty (120) days from the date of application submission; and
   5. (E) an "as vacant" appraisal of at least one of the proposed lots if: The Applicant has an Identity of Interest with the seller or current owner of the property; or any of the proposed property is part of a newly developed or under-development subdivision in which at least three other third-party sales cannot be evidenced. The purchase price of any lot in which the current owner has an identity of interest must comply with the identity of interest transfer requirements in Chapter 10, Subchapter D of this title (relating to Underwriting and Loan Policy).
4. (4) The Department may prioritize Applications or otherwise incentivize Applications that partner with other lenders to provide permanent purchase money financing for the purchase of units developed with funds provided under this subchapter.

Source Note:The provisions of this §23.70 adopted to be effective October 31, 2012, 37 TexReg 8492.