TITLE 10. COMMUNITY DEVELOPMENT

PART 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

CHAPTER 10. UNIFORM MULTIFAMILY RULES

SUBCHAPTER H. INCOME AND RENT LIMITS

10 TAC §§10.1002, 10.1005, 10.1006

The Texas Department of Housing and Community Affairs (the "Department") proposes amendments to 10 TAC Chapter 10, Uniform Multifamily Rules, Subchapter H, Income and Rent Limits, §10.1002, Definitions, and §10.1005, HOME and NSP; and proposes new Subchapter H, Income and Rent Limits, §10.1006, concerning National Housing Trust Fund ("NHTF").

These amendments and new section define the Tax Credit Assistance Program ("TCAP") and the Tax Credit Assistance Program Repayment Funds ("TCAP RF") and codify the income and rent limits for these programs.

10 TAC §10.1002, Definitions: amendment defines the TCAP and TCAP RF administered by the Department.

10 TAC §10.1005, HOME and NSP: amendment codifies the income and rent limits applicable to TCAP RF.

10 TAC §10.1006, National Housing Trust Fund (NHTF): new section codifies the income and rent limits applicable to NHTF.

FISCAL NOTE. Timothy K. Irvine, Executive Director, has determined that, for each year of the first five years the amendments and new rule will be in effect, enforcing or administering the proposed amendments and new rule do not have any foreseeable implications related to costs or revenues of the state or local governments.

PUBLIC BENEFIT/COST NOTE. Mr. Irvine also has determined that, for each year of the first five years the proposed amendments and new section will be in effect, there will be no change in the public benefit anticipated as a result of the proposed amendment and new rule. There will not be any economic cost to any individuals required to comply with the proposed amendments and new rule.

ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES OR RURAL COMMUNITIES. The Department has determined that there will be no economic effect on small or micro-businesses or rural communities.

GOVERNMENT GROWTH IMPACT STATEMENT. Mr. Irvine also has determined that, for the first five years a rule would be in effect:

1. The proposed rule does not create or eliminate a government program;

2. The proposed rule will not require a change in the number of employees of the Department;

3. The proposed rule will not require additional future legislative appropriations;

4. The proposed rule will not require an increase in fees paid to the Department;

5. The proposed rule will not create a new regulation;

6. The proposed rule will not expand, limit, or repeal an existing regulation;

7. The proposed rule will not increase or decrease the number of individuals subject to the rule's applicability; and

8. The proposed rule will neither positively nor negatively affect this state's economy.

REQUEST FOR PUBLIC COMMENT. The public comment period will be held from November 24, 2017, through December 27, 2017. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Patricia Murphy, Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941, or by fax to (512) 475-3359. ALL COMMENTS MUST BE RECEIVED BY 5:00 p.m. Austin local time December 27, 2017.

STATUTORY AUTHORITY. The amendments and new rule are proposed pursuant to §2306.053 of the Texas Government Code, which authorizes the Department to adopt rules.

The proposed amendments and new rule affect no other code, article, or statute.

§10.1002.Definitions.

(a) Unless otherwise defined here terms have the meaning in §10.3 of this chapter (relating to Definitions), or federal or state law.

(b) Multifamily Tax Subsidy Program Imputed Income Limit--Using the income limits provided by HUD pursuant to §142(d), the imputed income limit is the income limitation which would apply to individuals occupying the unit if the number of individuals occupying the unit were as described in paragraphs (1) and (2) of this subsection:

(1) In the case of a unit which does not have a separate bedroom, 1 individual; or

(2) In the case of a unit which has 1 or more separate bedrooms, 1.5 individuals for each separate bedroom.

(c) Tax Credit Assistance Program ("TCAP")--Funds awarded as part of the American Recovery and Reinvestment Act to assist Low Income Housing Tax Credit projects funded during 2007, 2008, and 2009.

(d) Tax Credit Assistance Program Repayment Funds ("TCAP RF")--Multifamily Direct Loan funds made available through income generated from loan repayments from the Tax Credit Assistance Program.

§10.1005.HOME, TCAP RF and NSP.

(a) HOME and TCAP RF Developments must use the HOME Program Income and Rent Limits that are calculated annually by HUD's Office of Policy Development and Research (PDR). The limits are made available for each Metropolitan Statistical Areas (MSA), Primary Metropolitan Statistical Areas (PMSA) and Area, District or County by State.

(1) Upon publication, the Department will determine which counties are in each MSA, PMSA, Area or District.

(2) Generally, PDR publishes income limits in tables identifying the following Area Median Gross Income (AMGI) by household size:

(A) Extremely Low-Income Limits which are generally 30 percent of median income, which will be shown as the 30 percent limit in the Department's income limits [30 percent Limits];

(B) Very Low-Income Limits which are generally 50 percent of median income, [but not less than the State non-metropolitan median] which will be shown as the 50 percent limit in the Department's income limits;

(C) 60 percent Limits;

(D) Low-Income Limits which are generally 80 percent of the median income, but capped at the national median income with some exceptions which will be shown as the 80 percent limits in the Department's income limits.

(3) If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by PDR:

(A) To calculate the 30 percent AMGI, the 50 percent AMGI limit will be multiplied by .60 or 60 percent.

(B) To calculate the 40 percent AMGI, the 50 percent AMGI limit will be multiplied by .80 or 80 percent.

(C) To calculate the 60 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.2 or 120 percent.

(b) PDR publishes High and Low HOME rent limits by bedroom size.

(c)PDR does not publish a 30 percent or 40 percent rent limits that certain HOME and TCAP RF Developments are required to use. These limits will be calculated using the same formulas described in §10.1004 of this subchapter (relating to Housing Tax Credit Properties, TCAP, Exchange and HTF).

(d) In the event that PDR publishes rent limits after the HOME program income limits, the Department permits HOME and TCAP RF Developments to delay the implementation of the 30 percent and 40 percent rent limits until the High and Low HOME rent limits must be used.

(e) NSP income limits are published annually by HUD for each county with tables identifying the 50 percent AMGI and 120 percent AMGI for household size. If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by HUD:

(1) To calculate the 30 percent AMGI, the 50 percent AMGI limit will be multiplied by .60 or 60 percent.

(2) To calculate the 40 percent AMGI, the 50 percent AMGI limit will be multiplied by .80 or 80 percent.

(3) To calculate the 60 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.2 or 120 percent.

(4) To calculate the 80 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.6 or 160 percent.

(f) If the LURA for an NSP Development restricts rents, the amount of rent the Development Owner is permitted to charge will be the High or Low HOME rent published by PDR or calculated in the same manner described in §10.1004 of this subchapter using the HOME income limits.

§10.1006.National Housing Trust Fund (NHTF).

(a) The 30% National Housing Trust Fund Income and Rent Limits are calculated annually by HUD's Office of Policy Development and Research ("PDR"). The limits are made available for each Metropolitan Statistical Areas (MSA), Primary Metropolitan Statistical Areas ("PMSA") and Area, District or County by State. Generally, PDR publishes income limits in tables identifying the Area Median Gross Income ("AMGI") by household size. The 30% NHTF income limit is the greater of the 30 percent limit and the federal poverty line. The 15% NHTF income limit will be half of the 30% NHTF income limit.

(b) PDR publishes 30% NHTF Rent Limits by bedroom size. The 30% NHTF rent limit is calculated based on the greater of the 30 percent AMGI or the federal poverty line The 15% NHTF rent limit will be half of the 30% NHTF rent limit.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 13, 2017.

TRD-201704560

Timothy K. Irvine

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: December 24, 2017

For further information, please call: (512) 475-3140