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Presentation, discussion, and possible action on an order proposing the repeal of 10 TAC Chapter 20, Single Family Programs Umbrella Rule, and an order proposing new 10 TAC Chapter 20, Single Family Programs Umbrella Rule, and directing their 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, the proposed new 10 TAC Chapter 20, Single Family Programs Umbrella Rule primarily updates requirements for improvement surveys and creates consistency for housing counseling and loan closing procedures for Department funded Mortgage Loans; and
WHEREAS, upon Board approval, the proposed new rule will be submitted for publication in the Texas Register to receive public comment, which will be accepted from December 22, 2023 to January 22, 2024;
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 proposed repeal of 10 TAC Chapter 20 and proposed new 10 TAC Chapter 20, regarding the Single Family Programs Umbrella Rule, in the form presented to this meeting, to be published in the Texas Register for public comment 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
The purpose of repealing 10 TAC Chapter 20, Single Family Programs Umbrella Rule and proposing a new 10 TAC Chapter 20, is to update and clarify survey requirements for construction activities and to create consistency as it relates to requirements for Single Family Programs Mortgage Loans. The proposed rule requires that all Households that enter into a Mortgage Loan subject to the rule receive HUD approved housing counseling, and requires that the Department prepare loan closing documents, including disclosures. While the changes included in the proposed new rule are minimal, staff recommends proposed repeal and replacement of the entire chapter in order to solicit public comment on all sections of the rule. Staff has summarized the significant changes proposed to be made to the Single Family Programs Umbrella Rule below. A blackline version with all changes is attached and will be available on the Department’s website during the public comment period.
The Department held two virtual roundtable discussions on November 10, 2023, regarding the Single Family Umbrella Rule and other single family rules being presented under separate items at this meeting. Comments and suggestions received from the roundtable discussions were taken into consideration during the preparation of the proposed Single Family Programs Umbrella Rule, as presented at this meeting.
The blackline proposed rule is attached to indicate to the Board and the public what is being changed. The significant updates proposed to 10 TAC Chapter 20 are:
o Fair Housing, Waitlist Policy, Affirmative Marketing and Procedures, Housing Counseling, Denials, Notice to Applicants, Reasonable Accommodations, and Limited English Proficiency
§ Requires HUD approved housing counseling for all Department issued Mortgage Loans.
o Survey Requirements
§ Specifies that the survey must show the existing improvements at the time of application for construction activities
o Insurance and Title Requirements
§ Clarifies that for construction activities, some types of insurance are required prior to Loan Closing while other types are required prior to the retainage draw.
o Loan, Lien and Mortgage Requirements for Activities
§ Proposed changes require that the Department prepare closing documents for all TDHCA issued Mortgage Loans.