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Presentation, discussion, and possible action on an order proposing the amendment of 10 TAC Chapter 10, Uniform Multifamily Rules, Subchapter F Compliance Monitoring, §10.612 Tenant File Requirements; an order proposing new §10.628 Verification of Occupant Legal Status for HOME and NHTF Developments; 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, Section 401(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) provides that an alien who is not a qualified alien is not eligible for federal public benefits, and Department of Justice (DOJ) guidance provides that each federal agency is required to identify which of their programs are considered federal public benefits for this purpose;
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) in its 2025 federal Grant Agreements for the National Housing Trust Fund (NHTF) and HOME Programs has clarified that PRWORA does apply to those programs, and in a subsequent announcement included HOME-ARP in those programs to which this would be applicable;
WHEREAS, under separate rule action the Department has initiated the applicability of PRWORA for Community Affairs, Homelessness and Single Family activities, including HOME, and this action is now to ensure compliance with this guidance for the Department’s HOME, HOME-ARP Rental and NHTF multifamily portfolio of properties;
WHEREAS, the rule actions herein are specific only to Developments in the Department’s portfolio that have HOME, HOME-ARP Rental or NHTF financing or land use restriction agreements, and no action at this time is being taken relating to the Department’s Low Income Housing Tax Credit multifamily portfolio; and
WHEREAS, staff has therefore drafted a revision of two rule sections on this subject, which upon Board approval will be released for public comment and returned to the Board for adoption at a subsequent Board meeting;
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 actions herein 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 any requested revisions to the preambles.
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BACKGROUND
Two primary laws directly address noncitizen eligibility for federal housing programs. The first is Section 214 of the Housing and Community Development Act of 1980, as amended. It applies to specified programs; primarily, federal rental assistance programs administered by the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA), including the Public Housing, Housing Choice Voucher, Section 8 project-based rental assistance programs, and rural rental assistance. The law makes eligible for assistance certain categories of noncitizens, including most categories of immigrants, while excluding unauthorized immigrants and those in most types of temporary status (e.g., tourists, students, and temporary workers).
The second law is Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA, P.L. 104-193). Section 401(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), provides that an alien who is not a qualified alien is not eligible for any federal public benefit. The Department of Justice (DOJ) provided guidance that each federal agency is required to identify which of their programs are considered federal public benefits for this purpose.
The primary method for verification of qualified status is through checking on a series of allowable documentation and/or through a system called SAVE (Systematic Alien Verification for Entitlements), which historically has been a fee-based inter-governmental initiative designed to help federal, state, tribal, and local government agencies confirm citizenship, U.S. national and qualified alien status prior to granting benefits. SAVE access is granted directly to the Department and other governmental entities.
In September HUD provided the Department with its 2025 federal Grant Agreements for the National Housing Trust Fund and HOME Programs which reflect that PRWORA does apply to those programs, among others. The Grant Agreements indicate that verification can occur through either SAVE or an equivalent verification system approved by the federal government. Subsequently in an announcement on November 26, 2025, HUD included HOME-ARP in the programs to which PRWORA would be applicable.
In prior Board action rules were proposed that implement the applicability of PRWORA for the single family HOME activities. This action now implements the applicability of PRWORA for the multifamily HOME, HOME ARP Rental, and NHTF portfolio.
All properties in the Department’s portfolio that have HOME, HOME-ARP or NHTF units will now be required to adhere to this rule. The rule will require that all persons signing a lease must have been verified as having legal status - either as a US citizen, US National, or a qualified alien. It should be noted that this requirement will not apply to survivors of domestic violence, sexual assault, stalking, and/or dating violence, more specifically populations protected by the Violence Against Women Act (VAWA) and the Family Violence Prevention and Services Act (FVPSA). This requirement will be applicable for the length of the state and federal affordability period. A property must perform this through verification based on a series of acceptable documents, or if still needed, through the SAVE system. To access the SAVE system properties will have the following options:
• To have the Department provide the verification, directly or through a third-party contractor, which would require the property to gather and transmit - but not verify - the appropriate client level information and documentation; or
• To have the property participate in using the SAVE system, which is the option that creates the least delay in providing services to the clients (this option is reliant on the Department being able to revise its contract with the Department of Homeland Security); or
• To allow the property to procure a separate party to perform such verification services on their behalf.
There are two sections of the Compliance rule being addressed in this action. The first amends an existing section, and is prefaced by an amendment preamble, and is then provided in blackline form. The second is a newly added section of the rule and is prefaced by a preamble for new rule actions.
These rules will be released for public comment and returned to the Board for final adoption.