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Presentation, discussion, and possible action on an order adopting amendments to 10 TAC Chapter 10, Subchapter F, §10.601 Compliance Monitoring Objectives and Applicability; §10.607 Reporting Requirements; §10.611 Determination, Documentation and Certification of Annual Income; §10.613 Lease Requirements; §10.614 Utility Allowances; §10.621 Property Condition Standards; §10.622 Special Rules Regarding Rents and Rent Limit Violations; and §10.625 Events of Noncompliance and directing its publication for public comment in the Texas Register
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RECOMMENDED ACTION
recommendation
WHEREAS, pursuant to Tex. Gov’t Code §2306.053, the Texas Department of Housing and Community Affairs (the Department) is authorized to adopt rules governing the administration of the Department and its programs;
WHEREAS, at the meeting of January 15, 2026, the Board approved for publication in the Texas Register the proposed amendments of 10 TAC Chapter 10 Subchapter F concerning the Compliance Monitoring Rule to receive public comment;
WHEREAS, public comment was accepted from January 30, 2026, through March 3, 2026, and staff received comment from eleven entities and has prepared a reasoned response in the attached preamble; and
WHEREAS, the adoption of this amendment will be published in the Texas Register;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees, be and each of them hereby are authorized, empowered, and directed, for and on behalf of the Department to cause the adopted amendments of 10 TAC Chapter 10, Subchapter F, the Compliance Monitoring Rule in the form presented to this meeting, to be published in the Texas Register and in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing, including the preparation of the subchapter specific preambles.
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BACKGROUND
Tex. Gov’t Code §2306.053 provides for the Department to administer federal housing, community affairs, and community development programs, including the low-income housing tax credit program. The Compliance Division and its Rules, as a whole, are an integral part of monitoring the Department’s federal housing programs, assisting in: reviewing and ensuring long-term affordability, compliance and safety of multifamily rental housing Developments in the Department’s portfolio as required under Tex. Gov’t Code §§2306.185 and 2306.186; performing the functions of monitoring compliance as required under §2306.6719; and performing essential functions required under various federal program (HOME, ERA, HOME-Match, HOME-ARP, NSP, NHTF, TCAP-RF, Exchange, TCAP, Bond, 811 PRA) rules and under Section 42 of the Internal Revenue Code.
Housing and Urban Development (HUD) published a new HOME Final rule that must be implemented no later than April 30, 2026. The changes include significant revisions to tenant protections, utility allowances, rent increases, and reporting requirements for multifamily developments that have contracts executed on or after April 30, 2026. Owners of existing HOME, TCAP-RF and HOME-Match developments will have the opportunity to execute an amendment if they choose to opt-in to the entirety of the new rule (to the extent allowed under federal and state law).
At the Board meeting on January 15, 2026, the Board approved the publication of proposed amendments to the Compliance Monitoring Rule to receive public comment. Eleven comments were received related to the proposed changes. Staff has reviewed all comments and provided a reasoned response to these comments in the following preamble.
Behind the preamble for the proposed amendments’ adoption action, a draft of the rule is shown. The rule accepts the proposed amendments with blackline now reflecting only additional changes made after consideration of public comment. The Department has also made two technical corrections. The first is to 10 TAC §10.601(g). HOME ARP was inadvertently left out of the list of Developments that could under certain circumstances opt into the 2025 HOME final rule, despite the language in 10 TAC §10.613(c) explaining the circumstances in which HOME ARP could utilize certain allowable utility allowances in the final rule. This technical correction resolves this inconsistency. The second correction is to 10 TAC §10.607(k) so that the Department will contemporaneously have consistent information to provide necessary required federal notices including but not limited to 24 CFR §§92.252(c) and 92.359(g). The adopted amendments will be posted in the Texas Register.