# 10 Tex. Admin. Code § 10.402: 10 TAC § 10.402. Requests for Subordination Agreements, HUD Amendments to Restrictive Covenants, or HUD Riders to Restrictive Covenants

> Texas · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_402

## Section

- **Citation:** 10 Tex. Admin. Code § 10.402
- **Heading:** 10 TAC § 10.402. Requests for Subordination Agreements, HUD Amendments to Restrictive Covenants, or HUD Riders to Restrictive Covenants
- **Jurisdiction:** Texas
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Texas Administrative Code / Title 10 COMMUNITY DEVELOPMENT / Part 1 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS / Chapter 10 UNIFORM MULTIFAMILY RULES / 10 TAC § 10.402

## Text

(a) Requests for Subordination Agreements, HUD Amendments
 to Restrictive Covenants or HUD Riders to Restrictive Covenants from
 the Department must be reviewed and approved by the Department's Asset
 Management Division and Legal Division prior to execution. The Development
 Owner must demonstrate that the Development will remain feasible with
 the proposed new debt. For HTC Developments seeking to refinance within
 two years from the issuance of the IRS Form(s) 8609, a review of the
 Development's cost certification will be conducted to determine if
 the change in the financing structure would have affected the credit
 award. If it is determined that the change to the financing structure,
 net of additional costs associated with the refinance, would have
 resulted in over sourcing the Development, thereby resulting in an
 adjustment to the credit award, the Development Owner may be required
 to fund a Special Reserve Account in accordance with §10.404
 of this subchapter (relating to Reserve Accounts). Approval from the
 Board will be required for loan amounts that would cause the Developments
 to be over-sourced after accounting for the additional costs associated
 with the refinance and the deposit into the Special Reserve Account.
 Subordinations or re-subordinations of Developments with Direct Loans
 from the Department are also subject to the requirements under §13.13(c)(2)
 of this title (relating to Multifamily Direct Loan Rule) and Chapter
 11, Subchapter D of this title (relating to Underwriting and Loan
 Policy), including but not limited to §11.302(g)(4).
(b) All requests must include:
(1) Requested document on Department approved template,
 if available, and completed with the Development specific information;
(2) Documentation such as a loan commitment or application
 that identifies the proposed loan amount and terms;
(3) If the proposed legal description is different
 from the legal description in the Department's regulatory agreement,
 a survey, title commitment, or recorded plat that agrees with the
 legal description in the requested document. Changes to the Development
 Site may be subject to further review and approval under §10.405
 of this subchapter (relating to Amendments and Extensions); and
(4) Development's most recent 12-month trailing operating
 statement. If the financial statement indicates that the proposed
 new debt cannot be supported by the Development, the Development Owner
 must submit an operating pro forma and a written explanation for the
 differences from the actual performance of the Development.

## Nearby sections

- [10 Tex. Admin. Code § 10.400 10 TAC § 10.400. Purpose](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_400.md)
- [10 Tex. Admin. Code § 10.401 10 TAC § 10.401. Housing Tax Credit and Tax Exempt Bond Developments](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_401.md)
- [10 Tex. Admin. Code § 10.402 10 TAC § 10.402. Requests for Subordination Agreements, HUD Amendments to Restrictive Covenants, or HUD Riders to Restrictive Covenants](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_402.md)
- [10 Tex. Admin. Code § 10.403 10 TAC § 10.403. Review of Annual HOME, HOME-ARP, HOME Match, NSP, TCAP-RF, and National Housing Trust Fund Rents](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_403.md)
- [10 Tex. Admin. Code § 10.404 10 TAC § 10.404. Reserve Accounts](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_404.md)
- [10 Tex. Admin. Code § 10.405 10 TAC § 10.405. Amendments and Extensions](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_405.md)
- [10 Tex. Admin. Code § 10.406 10 TAC § 10.406. Ownership Transfers (§2306.6713)](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_406.md)
- [10 Tex. Admin. Code § 10.407 10 TAC § 10.407. Right of First Refusal](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_407.md)
- [10 Tex. Admin. Code § 10.408 10 TAC § 10.408. Qualified Contract Requirements](https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_408.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_TAC_T10_P1_C10_S10_402. Check the current official text before relying on it. Not legal advice.