Section 2306.6706 - Additional Application Requirement: Nonprofit Set-Aside Allocation(a) In addition to the information required by Section 2306.6705, an application for a housing tax credit allocation from the nonprofit set-aside, as defined by Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)) , must contain the following written, detailed information with respect to each development owner and each general partner of a development owner: (1) Internal Revenue Service documentation of designation as a Section 501(c)(3) or 501(c)(4) organization;(2) evidence that one of the exempt purposes of the nonprofit organization is to provide low income housing;(3) a description of the nonprofit organization's participation in the construction or rehabilitation of the development and in the ongoing operations of the development;(4) evidence that the nonprofit organization prohibits a member of its board of directors, other than a chief staff member serving concurrently as a member of the board, from receiving material compensation for service on the board;(5) a third-party legal opinion stating that the nonprofit organization is not affiliated with or controlled by a for-profit organization and the basis for that opinion;(6) a copy of the nonprofit organization's most recent audited financial statement;(7) a list of the names and home addresses of members of the board of directors of the nonprofit organization;(8) a third-party legal opinion stating that the nonprofit organization is eligible under Subsection (b) for a housing tax credit allocation from the nonprofit set-aside and the basis for that opinion; and(9) evidence that a majority of the members of the nonprofit organization's board of directors principally reside:(A) in this state, if the development is located in a rural area; or(B) not more than 90 miles from the development in the community in which the development is located, if the development is not located in a rural area.(b) To be eligible for a housing tax credit allocation from the nonprofit set-aside, a nonprofit organization must:(1) control a majority of the development;(2) if the organization's application is filed on behalf of a limited partnership, be the managing general partner; and(3) otherwise meet the requirements of Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)) .Tex. Gov't. Code § 2306.6706
Added by Acts 2001, 77th Leg., ch. 1367, Sec. 8.01, eff. 9/1/2001.