1. (a) Form. Applications must be filed on forms prescribed by the board and must contain all information and documentation required under the Act and this chapter, as applicable.

2. (b) Application Filing. The issuer shall submit one original and one copy of the application for reservation. Each application must be accompanied by the following:

   1. (1) the application fee;
   2. (2) the certificate regarding fees, on the form prescribed by the board;
   3. (3) a copy of the inducement resolution or other similar official action taken by the issuer with respect to the bonds and the project which are the subject of the application, certified by an officer of the issuer; or a copy of the certified resolution of the issuer authorizing the filing of the application for reservation;
   4. (4) a copy of the issuer's articles of incorporation as certified by the secretary of state of Texas and by-laws, including amendments thereto and restatements thereof, or alternatively, a certification that there have been no amendments to the articles of incorporation or by-laws since the last submission of these items to the board;
   5. (5) a copy of the issuer's certificate of continued existence from the secretary of state of Texas dated within 30 days of submission of application;
   6. (6) a copy of the borrower's and, if the borrower is a partnership, each partner's certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application;
   7. (7) a statement by the issuer, other than an issuer of a state-voted issue or the Texas Department of Housing and Community Affairs (TDHCA) or the Texas Agricultural Finance Authority (TAFA), that the bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from a prior issue or issues of bonds issued by the same issuer, or based on the issuer's population;
   8. (8) if unexpended proceeds exist, including transferred proceeds representing unexpended proceeds, from a prior issue or issues of bonds, other than a state-voted issue or an issue by the TDHCA or TAFA, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a statement by the trustee as to the current amount of unexpended proceeds that exists for each such issue. The issuer of the prior issue of bonds shall certify to the current amount of unexpended proceeds that exists for each issue should a trustee not administer the bond issues;
   9. (9) if unexpended proceeds, including transferred proceeds representing unexpended proceeds, other than prepayments exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by TDHCA or TAFA, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a definite and binding financial commitment agreement must accompany the application in such form as the board finds acceptable, to expend the unexpended proceeds by the later of 12 months after the date of receipt by the board of an application for reservation or December 31 of the program year for which the application is being filed. For purposes of this paragraph, the commitment by lenders to originate and close loans within a certain period of time shall be deemed a definite and binding agreement to expend bond proceeds within such period of time and any additional period of time during which such origination period may be extended under the terms of such agreement; provided that any extension provision may be amended, prior to the date on which the bond authorization requirements described in subsection (c) of this section must be satisfied, to provide that such period shall not be extended beyond the later of 12 months after the date of receipt by the board of an application for reservation or December 31 of the program year for which the application is being filed. For purposes of this paragraph, issuers of qualified student loan bonds authorized by §53.47, Education Code, may satisfy the requirements of §1372.028(c)(f) by, in lieu of a definite and binding agreement, providing with the application evidence as certified by the issuer that the issuer has purchased, in each of the last three calendar years, qualified student loans in amounts greater than or equal to the amount of the unexpended proceeds;
   10. (10) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by the TDHCA or TAFA, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of the pending application, a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application to fulfill the requirements of the Act and that the agreement referred to in paragraph (9) of this subsection constitutes a legal and binding obligation of the issuer, if applicable, and the other party or parties to the agreement;
   11. (11) a written opinion of legal counsel, addressed to the board, stating the bonds are required to be included under the state ceiling and that the issuer is legally authorized to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference, the provision of the Constitution or law of the state which authorizes the bonds for the project;
   12. (12) a qualified mortgage bond issuer that submits an application for reservation as described in §1372.032, Government Code, shall provide a statement certifying to the most recent closing of qualified mortgage bonds determined as provided in §190.2(c)(3) of this title (relating to Allocation and Reservation System), and the most recent date of a reservation received for mortgage revenue bonds and state the government unit(s) for which the local population was based for the issuance of bonds or for receipt of a reservation; and

   13. (13) For a qualified residential rental project issue, an issuer shall provide a copy of an executed earnest money contract between the borrower and the seller of the project. This earnest money contract must be in effect at the time of submission of the application to the board and expire no earlier than December 1 of the year preceding the applicable program year. The earnest money contract must stipulate and provide for the borrower's option to extend the contract expiration date through March 1 of the program year, subject only to the seller's receipt of additional earnest money or extension fees, so that the borrower will have site control at the time a reservation is granted. If the borrower owns the property, evidence of ownership must be provided. For subsequent reservations granted after March 1 and throughout the remainder of the program year, the borrower must provide within the close of three business days following the notification of pending reservation:

       1. (A) if applicable, proof of application for Low Income Housing Tax Credits with TDHCA, and
       2. (B) a copy of an earnest money contract that is in full force and effect. For those reservations granted on August 15 or, if not falling on a business day the next business day thereafter, the borrower will have until the close of the fifth business day after receipt of the reservation to provide the earnest money contract or the reservation will automatically expire.

3. (c) Bond authorization requirements. Not later than 35 calendar days after an issue's reservation date, the issuer shall submit to the board:

   1. (1) one-third of the closing fee;
   2. (2) the certificate regarding fees, on the form prescribed by the board;
   3. (3) a certificate signed by the issuer that certifies the principal amount of the bonds to be issued or the portion of the state ceiling that will be converted to mortgage credit certificates;
   4. (4) a list of finance team members with their addresses and telephone numbers;
   5. (5) if applicable, an amended agreement pursuant to subsection (b)(8) of this section;
   6. (6) a bond authorization requirements checklist, on the form prescribed by the board.
4. (d) Closing fee. The remaining two-thirds of the fee must be paid simultaneously with closing on the bonds. The issuer should submit the fee to the board not later than the fifth business day after the day on which the bonds are closed.

5. (e) Closing documents. Not later than the fifth business day after the day on which the bonds are closed the issuer shall file with the board:

   1. (1) a certificate regarding fees, on the form prescribed by the board;
   2. (2) a closing documents checklist, on the form prescribed by the board;
   3. (3) a certificate of delivery on the form prescribed by the board;
   4. (4) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue;
   5. (5) if one is required, a copy of the approval of the local government unit or local government units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the Code does not require such a public hearing and approval of a local government unit or local government units;
   6. (6) the document evidencing compliance with §1372.040, Government Code;

   7. (7) other documents relating to the issuance of bonds, including a statement of the bonds':

      1. (A) principal amount;
      2. (B) interest rate or the formula by which the interest is calculated;
      3. (C) maturity schedule;
      4. (D) purchaser or purchasers; and
   8. (8) an official statement.

   9. (9) For mortgage credit certificates the issuer shall file item in paragraph (1) of this subsection and the following:

      1. (A) a certified copy of the issuer's resolution electing to convert state ceiling to mortgage credit certificates;
      2. (B) issuer's mortgage credit certificate election; and
      3. (C) program plan.
   10. (10) For a residential rental project described in §190.2(d)(1) or (2) of this title, evidence from the Texas Department of Housing and Community affairs that an award of Low Income Housing Tax Credits has been approved for the project.
6. (f) Additional information. The board may require additional information at any time before granting a certificate of reservation or certificate of allocation.

7. (g) Application restrictions.

   1. (1) In order to submit an application for reservation prior to October 21 of the year immediately preceding the program year an issuer or borrower must have been in existence on October 1 of that year.
   2. (2) Project substitutions will not be allowed after the application for reservation has been delivered to the board.
   3. (3) No issuer may submit an application for reservation for the same or substantially the same project or projects as are contained in the application of another issuer.

   4. (4) For any one project, no issuer, prior to September 1 of the program year, may exceed the following maximum application limits:

      1. (A) $25,000,000 for issuers described by §1372.022(a)(1) other than the Texas Department of Housing and Community Affairs;
      2. (B) $50 million for issuers described by §1372.022(a)(2) other than the Texas Higher Education Coordinating Board or $75 million for the Texas Higher Education Coordinating Board;
      3. (C) an amount as limited by the code for issuers described by §1372.022(a)(3);
      4. (D) the lesser of $15 million or 15 percent of the amount set aside for this purpose for issuers described by §1372.022(a)(4);
      5. (E) $35 million for issuers described by §1372.022(a)(5) and §1372.033 Notwithstanding the cap limit described in §1372.037(5), each issuer that has requested and has been offered a reservation in the maximum amount shall be granted in equal amounts any remaining state ceiling set aside for qualified student loan issuers. This will be based on the acceptance by an issuer of a reservation and that an issuer does not refuse any additional reservation. The disbursement of equal shares will be granted in conjunction, subject to availability and acceptance, with the original request
      6. (F) $25 million for issuers described by §1372.022(a)(6).
   5. (5) The board may not accept applications for more than one project located at, or related to, a business operation at a particular site for any one program year.

Source Note:The provisions of this §190.3 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective February 10, 1994, 19 TexReg 634; 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; amended to be effective February 27, 2002, 27 TexReg 1338.