Texas Adopts Contract Policy for Owners Seeking to Sell Projects

摘要

The Texas Department of Housing and Community Affairs (TDHCA) has issued proposed qualified contract policies for owners seeking to sell their projects after their 14th year. Under Section 42(h) (6) (F) of the Internal Revenue Code, an owner can terminate the extended low-income use restriction at the end of the 15-year compliance period if the allocating agency can't produce a qualified contract for a buyer who will continue its low-income use. TDHCA's policy requires owners to give advance notice of their intent to request a qualified contract at any time after the end of the year that precedes the last year of the compliance period or the initial affordability period they elected. In the case of a multiple building project, the initial affordability period is based upon the date the last building was placed in service. If a development received a multiple allocation, the initial affordability period ends with the last year of the final allocation.