Section 12.4 - Pre-Application Process and Evaluation(a) Pre-Inducement Questionnaire. Prior to the filing of a pre-application, the Applicant shall submit the Pre-Inducement Questionnaire, in the form prescribed by the Department, so the Department can have a preliminary understanding of the proposed Development plan before a pre-application and corresponding fees are submitted. After reviewing the pre-inducement questionnaire, Department staff will follow-up with the Applicant to discuss the next steps in the process and may schedule a pre-inducement conference call or meeting. Prior to the submission of a pre-application, it is essential that the Department and Applicant communicate regarding the Department's objectives and policies in the development of affordable housing throughout the State using Bond financing. The acceptance of the questionnaire by the Department does not constitute a pre-application or Application and does not bind the Department to any formal action regarding an inducement resolution.(b) Neighborhood Risk Factors. If the Development Site has any of the characteristics described in § 11.101(a)(3)(D) of this title (relating to Neighborhood Risk Factors), the Applicant must disclose the presence of such characteristics to the Department. Disclosure may be done at time of pre-application and handled in connection with the inducement or it can be addressed at the time of Application submission. The Applicant understands that any determination made by staff or the Board at the time of bond inducement regarding Site eligibility based on the documentation presented, is preliminary in nature. Should additional information related to any of the Neighborhood Risk Factors become available while the Tax-Exempt Bond Development Application is under review, or the information by which the original determination was made changes in a way that could affect eligibility, then such information will be re-evaluated and presented to the Board.(c) Pre-Application Process. An Applicant who intends to pursue Bond financing from the Department shall submit a pre-application by the corresponding pre-application submission deadline, as set forth by the Department. The required pre-application fee as described in § 12.10 of this chapter (relating to Fees) must be submitted with the pre-application in order for the pre-application to be considered accepted by the Department. Department review at the time of the pre-application is limited and not all issues of eligibility, fulfillment of threshold requirements in connection with the full Application, and documentation submission requirements pursuant to Chapter 11 of this title (relating to Housing Tax Credit Program Qualified Allocation Plan) are reviewed. The Department is not responsible for notifying an Applicant of potential areas of ineligibility or other deficiencies at the time of pre-application. If the Development meets the criteria as described in § 12.5 of this chapter (relating to Pre-Application Threshold Requirements), the pre-application will be scored and ranked according to the selection criteria as described in § 12.6 of this chapter (relating to Pre-Application Scoring Criteria). The selection criteria, as further described in § 12.6 of this chapter, reflects a structure that gives priority consideration to specific criteria as outlined in Tex. Gov't Code, § 2306.359, as well as other important criteria. Should two or more pre-applications receive the same score, the Department will utilize the tie breaker factors in this paragraph, which will be considered in the order they are presented herein, to determine which pre-application will receive preference in consideration of a Certificate of Reservation: (1) To the pre-application that was on the waiting list with the TBRB but did not have an active Certificate of Reservation at the time of the TBRB lottery and achieved the maximum number of points under § 12.6(12) of this chapter; and(2) To the pre-application with the highest number of positive points achieved under § 12.6(9) of this chapter.(d) Inducement Resolution. After the pre-applications have been scored and ranked, the pre-application will be presented to the Department's Board for consideration of an inducement resolution declaring the Department's initial intent to issue Bonds with respect to the Development. Approval of the inducement resolution does not guarantee final Board approval of the Bond Application. Department staff may recommend that the Board not approve an inducement resolution for a pre-application. Notwithstanding the foregoing, Department staff may, but is not required to, recommend that an inducement resolution be approved despite the presence of neighborhood risk factors, undesirable site features, or requirements that may necessitate a waiver, that have not fully been evaluated by staff at pre-application. The Applicant recognizes the risk involved in moving forward should this be the case and the Department assumes no responsibility or liability in that regard. Each Development is unique, and therefore, making the final determination to issue Bonds is often dependent on the issues presented at the time the full Application is considered by the Board.10 Tex. Admin. Code § 12.4
The provisions of this §12.4 adopted to be effective January 8, 2013, 38 TexReg 128; amended to be effective December 24, 2013, 38 TexReg 9348; amended by Texas Register, Volume 40, Number 01, January 2, 2015, TexReg 59, eff. 1/8/2015; Adopted by Texas Register, Volume 41, Number 01, January 1, 2016, TexReg 237, eff. 1/7/2016; Adopted by Texas Register, Volume 41, Number 53, December 30, 2016, TexReg 10586, eff. 1/4/2017; Adopted by Texas Register, Volume 42, Number 52, December 29, 2017, TexReg 7667, eff. 1/4/2018; Amended by Texas Register, Volume 43, Number 49, December 7, 2018, TexReg 7886, eff. 12/10/2018; Adopted by Texas Register, Volume 44, Number 47, November 22, 2019, TexReg 7164, eff. 11/28/2019; Adopted by Texas Register, Volume 45, Number 47, November 20, 2020, TexReg 8313, eff. 11/26/2020; Adopted by Texas Register, Volume 46, Number 48, November 26, 2021, TexReg 8036, eff. 12/2/2021; Adopted by Texas Register, Volume 47, Number 47, November 25, 2022, TexReg 7867, eff. 12/4/2022; Adopted by Texas Register, Volume 48, Number 47, November 24, 2023, TexReg 6896, eff. 11/30/2023; Adopted by Texas Register, Volume 49, Number 47, November 22, 2024, TexReg 9500, eff. 11/27/2024