1. Overview of Stakeholders and Key Roles

2. Participants Rural Development
Texas Department of Housing and Community Affairs (TDHCA)
Bond Issuer
Borrower/Developer/Purchaser
Seller/Current Owner
Tax Credit Syndicator
Appraisal provider
CNA provider
Phase I provider
Attorney’s
Title Company
Builder/Contractor
Architect
Market Study Provider, if applicable
Etc.

3. Transfer Application Process as of 11/2/2017
The potential applicant contacts the Rural Development (RD) State Office to discuss a proposed transaction. When setting up the meeting/teleconference, RD will need to know what projects the applicant is looking to complete a transfer on and what type of funding the applicant is applying for (LIHTC 9%, 4%, 538 loan, etc). The applicant may contact RD via or telephone to set up the meeting.
During the meeting we will discuss what type of transaction you are looking at doing. We will discuss any issues that may hinder the process. We will also discuss the appraisal process and CNA process and what you will need to do prior to ordering both.
2. Appraisal:
During or after the meeting, we will forward to you the required form for ordering an appraisal, which is the MFH Project Information for Appraisal Form. The applicant will need to send the completed form back to RD with the following documents:
• RD Form or other cost estimation of construction cost
• Option to Purchase
• Estimated Post Rehab Proposed Budget

4. Transfer Application Process Continued…
RD will complete the form, pull an FIN1700 (3 year budget history), PRJS4200 (3 year Occupancy Trend), and request a copy of the Deed of Trust(s) from the applicable Area Office. When all of the information is received, we will submit a request to the Regional Manager for assignment of an Agency Appraiser for collaboration. The Agency Appraiser will review the information and send RD the Appraisal Guidance to include the correct values to request. We will send all of the information to the applicant to contract with an Appraiser of their choice. (Note: this could take approx. 3 weeks) When the appraisal report is completed, a copy will need to be forwarded to RD. The Agency will review and provide comments. (Approx. 2 weeks)
Capital Needs Assessment:
Before ordering the Capital Needs Assessment, the applicant needs to submit a CNA Provider Agreement to the Agency for review. We should receive 3 original signed documents. RD will review and provide concurrence, keep one copy, and send 2 back to the applicant. You should then have the CNA provider provide you the As-Is CNA. The CNA must be completed using the most current excel template and the CNA Guidance letter that is contained on the Rural Development web site. The As-Is CNA is to be ed in excel format, with a copy of the current Transition Plan, to the Underwriting Specialist in the State Office (currently and

5. Transfer Application Process Continued…
When the As-Is CNA is acceptable, the Agency will inform the applicant to submit a Post Rehab CNA for review. A (or equivalent cost estimate), and a Scope of Work needs to be submitted with the Post Rehab CNA. When the Post Rehab CNA is acceptable, the Agency will notify the applicant.
4. The applicant should submit a request to Kenneth or Amanda in the State Office for a Preliminary Assessment Tool (PAT). The Loan Specialist will download the current version of the PAT and load all the required reports to the PAT and send it to the applicant.
5. The applicant submits the Acquisition/Rehab Application to TDHCA.
6. The applicant submits to RD a Transfer Application Package in accordance with HB , Chapter 7, and Attachment 7-B-1. The applicant will need to a completed PAT, in excel format, to us for review. The applicant may submit their Transfer Application Package to the Agency at any time.

6. Transfer Application Process Continued…
7. RD will submit a letter to TDHCA stating we have received an application for Transfer of the property. When TDHCA issues a Commitment for LIHTC, the applicant should submit a copy to RD. If any changes need to be done to the PAT, the applicant needs to notify the Loan Specialist immediately so a plan to make the revisions can be made.
8. RD will review the application and notify the Applicant of any omissions/corrections (Approx 2 weeks). The Loan Specialist will review the PAT and notify the Applicant if there are any issues (Approx 30 days). RD will submit all items to be reviewed by other agencies/personnel for review, i.e. Organizational Documents, Previous Participation, etc. Normally this will take 2 to 4 weeks to have all reviews completed. We will notify the applicant of approval or rejection of each item.
9. When the Transfer Application is complete and the PAT is acceptable to the Loan Specialist, the PAT will be forwarded to the National Office for review/approval (Approx 2-4 weeks).

7. Transfer Application Process Continued…
10. When the approval letter is received from the National Office, we will send the Letter of Approval/Conditions, Loan Agreement, and RD Form to the applicant for completion and signature. The documents must be signed by the new owner and all original signed documents must be mailed back to the State Office. A copy should be ed to the Specialist handling the transaction. At this time we will also request any additional items needed (i.e. Updated Preliminary Title Commitment, Proposed Warranty Deed, Post Rehab Proposed Budget, etc.)
11. When the Letter of Approval/Conditions Acknowledgement and Loan Agreement are received from the applicant, we will start preparing Closing instructions for OGC review. OGC requires 60 days to review and issue closing instructions.
12. If not previously submitted, the applicant should submit the Final Design Submittal and Drawings for review.
13. Once the Final Design Submittal and Drawings are approved and closing instructions are received, RD will set a closing date in conjunction with TDHCA and the applicant. The closing date should be at a minimum 30 days out. The longer the better.

8. Transfer Application Process Continued…
14. The management company is required to submit the payment that is due the 1st of the month after closing before closing. When RD is notified that the Tenant Data has been transmitted, we will set the payment amount to $0.00 and release the Project Worksheet for processing. Finance will process the RA and Overage and set the payment amount at zero for that month. This will require an interest only payment for that month, if the loan closes other than the 1st of the month.
15. When closing documents are prepared, we will mail originals to the closing agent and a copy to all parties involved.

9. Questions
Any Questions?