(a) An application is ineligible for consideration under the low income housing tax credit program if:
(1) at the time of application or at any time during the two-year period preceding the date the application round begins, the applicant or a related party is or has been:
(A) a member of the board; or
(B) the director, a deputy director, the director of housing programs, the director of compliance, the director of underwriting, or the low income housing tax credit program manager employed by the department;
(2) the applicant proposes to replace in less than 15 years any private activity bond financing of the development described by the application, unless:
(A) at least one-third of all the units in the development are public housing units or Section 8 project-based units and the applicant proposes to maintain for a period of 30 years or more 100 percent of the units supported by housing tax credits as rent-restricted and exclusively for occupancy by individuals and families earning not more than 50 percent of the area median income, adjusted for family size;
(B) the applicable private activity bonds will be redeemed only in an amount consistent with their proportionate amortization; or
(C) if the redemption of the applicable private activity bonds will occur in the first five years of the operation of the development and complies with Section 42(h)(4), Internal Revenue Code of 1986:
(i) on the date the certificate of reservation is issued, the Bond Review Board determines that there is not a waiting list for private activity bonds in the same priority level established under § 1372.0321 or, if applicable, in the same uniform state service region, as referenced in § 1372.0231, that is served by the proposed development; and
(ii) the applicable private activity bonds will be redeemed according to underwriting criteria, if any, established by the department;
(3) the applicant proposes to construct a new development that is located one linear mile or less from a development that:
(A) serves the same type of household as the new development, regardless of whether the developments serve families, elderly individuals, or another type of household;
(B) has received an allocation of housing tax credits for new construction at any time during the three-year period preceding the date the application round begins; and
(C) has not been withdrawn or terminated from the low income housing tax credit program; or
(4) the development is located in a municipality or, if located outside a municipality, a county that has more than twice the state average of units per capita supported by housing tax credits or private activity bonds, unless the applicant:
(A) has obtained prior approval of the development from the governing body of the appropriate municipality or county containing the development; and
(B) has included in the application a written statement of support from that governing body referencing this section and authorizing an allocation of housing tax credits for the development.
(b) Subsection (a)(3) does not apply to a development:
(1) that is using:
(A) federal HOPE VI funds received through the United States Department of Housing and Urban Development;
(B) locally approved funds received from a public improvement district or a tax increment financing district;
(C) funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. § 12701 et seq.); or
(D) funds provided to the state and participating jurisdictions under the Housing and Community Development Act of 1974 (42 U.S.C. § 5301 et seq.);
(2) that is located in a county with a population of less than one million;
(3) that is located outside of a metropolitan statistical area; or
(4) that a local government where the project is to be located has by vote specifically allowed the construction of a new development located within one linear mile or less from a development under Subsection (a).