APPLICATION FOR RESERVATION; FORM AND CONTENT

(a) In this section, "qualified bond" has the meaning assigned by Section 141(e), Internal Revenue Code (26 U.S.C. Section 141(e)). (b) An issuer may apply for a reservation for a program year not earlier than October 5 of the preceding year. An issuer may not submit an application for a program year after November 15 of that year. (c) The application must: (1) be on a form prescribed by the board; (2) be signed by a member or officer of the issuer; and (3) state: (A) the maximum amount of the bonds in the issue that require an allocation under Section 146, Internal Revenue Code (26 U.S.C. Section 146); (B) the project or, with respect to an eligible facility, a functional description of the project to be financed by the proceeds, including the identification of the user of the proceeds or project; (C) whether the bonds are qualified bonds; (D) if the bonds are qualified bonds: (i) the subparagraph of Section 141(e)(1), Internal Revenue Code (26 U.S. C. Section 141(e)(1)), that applies; and (ii) if Section 141(e)(1)(A) of that code (26 U.S.C. Section 141(e)(1)(A)) applies, the paragraph of Section 142(a) of that code (26 U.S.C. Section 142(a)) that applies; (E) if the bonds are not qualified bonds: (i) that Section 141(b)(5), Internal Revenue Code (26 U.S.C. Section 141(b)(5)), applies; or (ii) for a transition rule project, the paragraph of the Tax Reform Act of 1986 that applies; (F) that bonds are not being issued for the same stated project for which the issuer has received sufficient carryforward during a previous year or for which there exists unexpended proceeds from, including transferred proceeds representing unexpended proceeds from, one or more prior issues of bonds issued by the same issuer or based on the issuer's population; and (G) other information that the board may require. (d) An issuer is not required to provide the statement required by Subsection (c)(3)(F) if the issuer: (1) is an issuer of a state-voted issue; (2) is the Texas Department of Housing and Community Affairs or the Texas State Affordable Housing Corporation; or (3) provides evidence that one or more binding contracts have been entered into, or other evidence acceptable to the board as described by program rule, to spend the unexpended proceeds by the later of: (A) 12 months after the date the board receives the application; or (B) December 31 of the program year for which the application is filed. (e) If an issuer applied the previous year for a reservation for qualified mortgage bonds and has not received the reservation at the time of application for the lottery, the issuer, instead of filing a complete application under Subsection (c), may file a statement explaining whether there are any changes in information from the application information filed the previous year. If there are changes, the statement must specify the current information. An issuer that files a statement under this subsection must pay the same application fee required for a complete application.