Sec. 2306.272. HOUSING SPONSOR INVESTMENTS. (a) A principal or stockholder of a housing sponsor may not earn, accept, or receive a per annum return on an investment in a housing development financed by the department greater than that allowed by department rule.
(b) A housing sponsor's equity in a housing development is the difference between the mortgage loan and the total housing development cost.
(c) The department shall establish a housing sponsor's equity when the final mortgage advance is made.
(d) For the purposes of this section, the amount established under Subsection (c) remains constant during the life of the department's mortgage on the development, except for additional equity investment made by the sponsor with the department's approval or at its order.
(e) In this section, "housing development costs" has the meaning assigned by Section 2306.271(d).
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
Structure Texas Statutes
Subtitle G - Economic Development Programs Involving Both State and Local Governments
Chapter 2306 - Texas Department of Housing and Community Affairs
Subchapter L. Housing Finance Division: Regulation of Housing Sponsors
Section 2306.261. Supervising Housing Sponsors
Section 2306.262. Uniform Systems of Accounts and Records
Section 2306.2631. Reports by Sponsors of Certain Multifamily Housing Developments
Section 2306.264. Inspections and Examinations
Section 2306.265. Operation, Maintenance, and Repair
Section 2306.266. Fees Relating to Regulation
Section 2306.267. Compliance With Applicable Laws, Rules, and Contract Terms
Section 2306.268. Rents and Charges
Section 2306.269. Tenant and Manager Selection
Section 2306.270. Regulation of Retirement of Capital Investment or Redemption of Stock
Section 2306.271. Cost Controls
Section 2306.272. Housing Sponsor Investments
Section 2306.273. Limitation on Application of Certain Provisions of Subchapter