1. (a) The state's ceiling shall be determined for each calendar year by the executive director based upon the most recent census estimate of the resident population of the state published by the Bureau of the Census prior to the beginning of such calendar year. The amount of the state ceiling shall be published in the Texas Register in the first January issue of each year.
2. (b) On or after October 10 of the year preceding the applicable program year, the board will accept applications for reservation from issuers authorized to issue private activity bonds. The board shall not grant a reservation to any issuer prior to January 2 of the program year. If two or more issuers file an application for reservation of the state ceiling in any of the categories described in Article 5190.9a, §2(b), the board shall conduct a lottery establishing the order of priority of each such application for reservation. Once the order of priority for all applications for reservation filed on or before October 20 of the year preceding the applicable program year is established, reservations for each issuer within the categories described in Subsections (b)(2), (b)(3), and (b)(6) of §2, shall be granted in the order of priority established by such lottery. Each issuer of state voted issues granted a reservation initially shall be granted a reservation date which is the first business day of the program year. If more than 10 applications by issuers, other than issuers of state voted issues, are granted a reservation initially, an additional lottery will be held immediately to determine staggered reservation dates for such issuers.

3. (c) The order of priority for reservations in the category described in Article 5190.9a, §2(b)(1), shall further be determined as provided in §1372.032, Government Code.

   1. (1) The first category of priority shall include those applications for a reservation filed by housing finance corporations which filed an application for a reservation on behalf of the same local population prior to September 1 of the previous calendar year, but which did not receive a reservation during such year. Any such priority of an issuer composed of more than one jurisdiction is not affected by the issuer's loss of a sponsoring governmental unit and that unit's population base if the dollar amount of the application has not increased.
   2. (2) The second category of priority shall include those applications for a reservation not included in the first category of priority.

   3. (3) Within each category of priority, reservations shall be granted in reverse calendar year order of the most recent closing of qualified mortgage bonds by each housing finance corporation, with the most recent closing being the last to receive a reservation and with those housing finance corporations that have never received a reservation for mortgage revenue bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot. The most recent closing applicable to:

      1. (A) a newly created housing finance corporation that was created by a local government or local governments that had previously sponsored an existing housing finance corporation or a disbanded housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation;
      2. (B) a housing finance corporation sponsored by a local government that has participated in the program of another housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation; and
      3. (C) all other housing finance corporations, is the most recent closing of qualified mortgage bonds by the housing finance corporation. In no event will a housing finance corporation or its sponsoring local government be allowed to achieve an advantage in the determination of its last closing date by creating or disbanding from a housing finance corporation.

4. (d) The order of priority for reservations in the category described in Article 5190.9a, §2(b)(4), shall further be determined as provided in Article 5190.9a, §3(h).

   1. (1) The first category of priority shall include those applications for a reservation for a project in which the maximum allowable rents are restricted to 30% of 50% adjusted median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program, for 100% of the units.
   2. (2) The second category of priority shall include those applications for a reservation for a project in which the maximum allowable rents are restricted to 30% of 60% adjusted median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program, for 100% of the units.
   3. (3) The third category of priority shall include those applications for any other qualified residential rental project.
   4. (4) Within each category of priority, reservations shall be granted in the order established by the lottery.
5. (e) The order of priority for reservations in the category described in Article 5190.9a, §2(b)(5), shall further be determined as provided in §1372.033, Government Code. Reservations shall be granted in reverse calendar year order of the most recent closing of qualified student loan bonds by each issuer of qualified student loan bonds authorized by §53.47, Education Code, with the most recent closing being the last to receive a reservation and with those higher education authorities that have never received a reservation for student loan bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot.
6. (f) If state ceiling becomes available on August 15, it shall be available prior to September 1 for qualified residential rental project issues in the order of priority described in subsection (d) of this section.
7. (g) If any issuer which was subject to the lottery conducted as described in subsection (b) of this section does not, prior to September 1 of the program year, receive the amount requested by such issuer in its application for reservation filed on or before October 20 of the preceding year, and if state ceiling becomes available on or after September 1 of the program year, such issuer, subject to the provisions of §1372.037, Government Code, shall receive a reservation for any state ceiling becoming available on or after September 1 of the program year, in the order of priority established by such lottery, without regard to the provisions of §§1372.032, 1372.033, Government Code and Article 5190.9a §3(h).
8. (h) All applications for a reservation filed after October 20 of the preceding year by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt.
9. (i) An application for a reservation for the current program year may not be submitted and a reservation may not be granted after December 1 of the program year.
10. (j) An issuer may refuse to accept a reservation for any amount if the reservation is granted after September 23 of the program year.
11. (k) The amount of the state's ceiling that has not been reserved prior to December 1 of the program year and any amount previously reserved that becomes available on or after that date because of the cancellation of a reservation or any other reason, may be designated, by the board, as carryforward for the carryforward purposes outlined in the Code through submission of the application for carryforward and any other required documentation.
12. (l) An issuer may submit an application for carryforward to the board at any time during the year through the last business day in December.
13. (m) Issuers will be eligible for carryforward according to the priority classifications listed in the Act.

Source Note:The provisions of this §190.2 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566.