Texas Government Code 2306.5671 – Compliance With Terms of Certain Contracts or Agreements
Current as of: 2024 | Check for updates
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Terms Used In Texas Government Code 2306.5671
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Property: means real and personal property. See Texas Government Code 311.005
A compliance contract or agreement between the corporation and a housing sponsor that receives bond financing by or through the corporation for the purpose of providing affordable multifamily housing must contain a provision stating that if the housing sponsor fails to comply with the terms of the contract or agreement, the corporation may, at a minimum and as appropriate:
(1) assess penalties;
(2) remove the manager of the affected property and select a new manager;
(3) withdraw reserve funds to make needed repairs and replacements to the property; or
(4) appoint the corporation as a receiver to protect and operate the property.