title
Presentation, discussion, and possible action on recommendation to adopt an Agreed Final Order assessing an administrative penalty relating to Accessible Housing Austin (NSP 77090000101, CMTS 5169) and AHA! At Briarcliff (TCAP-RF 13160017511, NHTF 82600017511, CMTS 5170)
end
RECOMMENDED ACTION
recommendation
WHEREAS, Accessible Housing Austin (NSP # 77090000101, CMTS #5169) and AHA! At Briarcliff (TCAP-RF #13160017511, NHTF # 82600017511, CMTS #5170), owned by Accessible Housing Austin!, have uncorrected compliance findings relating to the applicable land use restriction agreements and the associated statutory and rule requirements;
WHEREAS, TDHCA identified findings of noncompliance during its regularly scheduled 2024 Section 811 file monitoring review at CMTS 5170, and referred the noncompliance for an administrative penalty when it was not timely corrected;
WHEREAS, unresolved Section 811 noncompliance includes failure to conduct annual recertifications for two units, and failure to properly calculate the resident portion of rent for the same two units;
WHEREAS, TDHCA identified findings of noncompliance during its regularly scheduled 2025 National Standards for the Physical Inspection of Real Estate (NSPIRE) inspections at CMTS 5169 and CMTS 5170, and referred the noncompliance for an administrative penalty when it was not timely corrected;
WHEREAS, the referred NSPIRE noncompliance for CMTS 5169 and CMTS 5170 was resolved on July 30, 2025, and August 7, 2025, respectively;
WHEREAS, an Enforcement Committee informal conference was held on June 17, 2025, and Owner agreed, subject to Board approval, to enter into an Agreed Final Order assessing an administrative penalty of $1,000.00 for CMTS 5169 and $2,000.00 for CMTS 5170, to be fully forgivable if complete corrections are timely submitted as required by the Agreed Final Order;
WHEREAS, the $1,000.00 administrative penalty portion associated with CMTS 5169 is already fully forgiven due to the completed corrections, but it remains appropriate to include this noncompliance in the Agreed Final Order; and
WHEREAS, staff has based its recommendations for an Agreed Final Order on the Department's rules for administrative penalties and an assessment of each and all of the statutory factors to be considered in assessing such penalties, applied specifically to the facts and circumstances present in this case.
NOW, therefore, it is hereby
RESOLVED, that an Agreed Final Order assessing an administrative penalty of $2,000.00 for noncompliance at CMTS 5169 and CMTS 5170, substantially in the form presented at this meeting, and authorizing any non-substantive technical corrections, is hereby adopted as the order of this Board.
end
BACKGROUND
PROPERTY INFORMATION: The prior owner for Accessible Housing Austin (NSP 77090000101, CMTS 5169) received 2008 Neighborhood Stabilization Program (NSP) funds to acquire and operate three scattered-site single-family homes located at 7009 Thannas Way, 7624 Cayenne Lane, and 3705 Tamil, and two scattered-site duplexes located at 9215 Kempler Drive and 9407 Kempler Drive, all located in Austin, Travis County, Texas. Each unit is restricted at 80% AMI. Respondent purchased the properties in 2016, and remains subject to the NSP LURAs that became effective earlier that year. The affordability period ends on August 25, 2031.
AHA! At Briarcliff (TCAP-RF #13160017511, NHTF 82600017511, CMTS 5170) received National Housing Trust Fund (NHTF) and Tax Credit Assistance Program Repayment Funds (TCAP-RF) in 2016 and 2018, respectively, to build and operate 27 units in Austin, Travis County. Nine units are restricted at 30% AMI. Both LURAs will expire on July 31, 2049.
OWNERSHIP AND PROPERTY MANAGEMENT: CMTS 5169 and CMTS 5170 are both owned by Accessible Housing Austin!, a nonprofit corporation (AHA!). CMTS lists the executive director, Trey Nichols, as the primary contact for the owner. AHA! self manages the properties.
REFERRED VIOLATIONS SUBJECT TO ADMINISTRATIVE PENALTIES:
1. CMTS 5169: TDHCA conducted an NSPIRE inspection on February 4, 2025, and the Compliance Division set a corrective action deadline of May 6, 2025. AHA! failed to respond, and the noncompliance was referred to the Enforcement Committee (the Committee) on May 7, 2025. AHA! submitted partial corrective documentation on May 29, 2025, after intervention by the Committee, addressing all issues of noncompliance except for cosmetic damage to a damaged entry door for which repairs were under contract. Complete corrective documentation was received on July 30, 2025. A list of referred noncompliance is at Exhibit 1 to the Agreed Final Order.
2. CMTS 5170: TDHCA conducted a Section 811 file monitoring review on June 22, 2024, and the Compliance Division set a corrective action deadline of October 24, 2024, which was extended through May 17, 2025. AHA! submitted partial corrective documentation, but failed to submit annual income recertifications for two units, and failed to submit evidence of properly calculated resident portions of the rent for the same two units. The noncompliance was referred for an administrative penalty on June 9, 2025. This noncompliance remains unresolved, but AHA! indicates they are nearly ready to submit corrections.
TDHCA also conducted an NSPIRE inspection on February 5, 2025, and the Compliance Division set a corrective action deadline of May 6, 2025. AHA! failed to respond, and the noncompliance was referred to the Enforcement Committee (the Committee) on May 7, 2025. AHA! submitted partial corrective documentation on May 29, 2025, after intervention by the Committee, addressing all issues of noncompliance except for unwrapped kitchen sink supply lines in two accessible units for which repairs were under contract. Complete corrective documentation was received on August 7, 2025. A list of referred noncompliance is at Exhibit 2 to the Agreed Final Order.
FACTORS CONSIDERED TO DETERMINE ADMINISTRATIVE PENALTY: The Committee analyzed the required statutory factors for determining an appropriate administrative penalty as follows:
1. The seriousness, extent, and gravity of the violations, and whether a hazard is posed to the health, safety, or economic welfare of the public: Noncompliance for smoke alarms and fire extinguishers for both CMTS 5169 and CMTS 5170 is serious, however, many of the missing smoke alarms are likely due to a code change, and this is a common finding with NSPIRE as a result. Likewise, water heater pressure relief pipe noncompliance for CMTS 5170 is serious, but is also due to a code change, and is therefore also a common finding with NSPIRE. CMTS 5170 had serious and extensive noncompliance for units 233 and 235, however, both were vacant, mitigating the seriousness. Furthermore, AHA! indicated that both units had required extensive renovation and remediation due to oversized air conditioning units that had caused a mold issue in the units. AHA! filed a lawsuit against the HVAC contractor and received an insurance settlement; the repairs were then completed in May 2025. AHA! should have requested a good-cause deadline extension for this noncompliance given the unusual circumstances. For the Section 811 noncompliance at CMTS 5170, there is potential for gross rent overcharges, however, that is unlikely; the problem is because a required form was not completed, and the presented tenant files were incomplete. The Enforcement Committee also noted that AHA! has third-party assistance for the Section 811 program.
2. History of previous violations: AHA! has not been subject to any prior Agreed Final Orders to pay an administrative penalty. However, it has been referred for file monitoring noncompliance previously, primarily relating to executive turnover, a serious health matter, and lack of experience and training. Prior referrals were closed informally with full corrections received, and AHA! was warned in 2024 that any further referrals would result in a mandatory informal conference for administrative penalty consideration due to a pattern of repeated referrals.
3. Efforts made to correct the violations: AHA! did not submit any NSPIRE corrective documentation within the corrective action period set by the Compliance Division for either CMTS 5169 or CMTS 5170, but submitted corrections for all but three deficiencies in response to the penalty referral, along with evidence that the remaining items were contracted for completion. Actual repair dates are noted in the inspection reports at Exhibits 1 and 2 of the Agreed Final Order, ranging from February 20, 2025 through July 3, 2025. At the time of the informal conference, three NSPIRE deficiencies remained unresolved: cosmetic damage to an entry door for one unit at CMTS 5169, and unwrapped kitchen sink supply lines for two accessible units at CMTS 5170. All NSPIRE deficiencies are now resolved. AHA! submitted partial timely corrections to the Compliance Division in response to the Section 811 noncompliance at CMTS 5170, but did not correct the four deficiencies noted above, all of which remain unresolved. AHA! indicates that they are nearly ready to submit the file corrections.
4. Any other matters that justice may require: Mr. Nichols has regularly contacted TDHCA staff with compliance questions for the past few years. AHA! restructured in 2024, and new employees, confusion, lack of training, and poor deadline tracking are the primary problems causing these referrals. The Section 811 program is complex, and it is unfortunately highly likely that file monitoring noncompliance will continue because this is a small and inexperienced nonprofit without a professional management company. It does not have sufficient funds to hire an outside property management company, but it does have an outside provider that works on Section 811 requirements, demonstrating that AHA! acknowledges the program's complexity, however, it is the Enforcement Committee's understanding that this consultant was already in place prior to this penalty referral. The NSPIRE penalty referrals occurred after failing to submit any corrections to the Compliance Division. An extension likely would have been granted for the NSPIRE noncompliance, but AHA! failed to request an extension. AHA!'s executive director acknowledged a communication breakdown; he has now implemented weekly worklogs and tracking, along with a monthly calendar. He is holding weekly meetings with his staff to review both components, and has committed to staff trainings, both with their Section 811 provider and TDHCA.
5. Amount necessary to deter future violations: Repeated future administrative penalty referrals are likely, however, AHA! is a small nonprofit and there is negative net cash flow due to the mold remediation problem noted above, so a smaller fully forgivable administrative penalty is appropriate. Signing the Agreed Final Order should be sufficient to get the attention of the nonprofit and keep them moving in the right direction. In light of the above factors, the Committee recommended an Agreed Final Order assessing administrative penalties of $1,000.00 for CMTS 5169 and $2,000.00 for CMTS 5170, both to be fully forgiven if all noncompliance is corrected as required by the Agreed Final Order. The referred noncompliance for CMTS 5169 was fully resolved on July 30, 2025, so the $1,000.00 administrative penalty associated with that property is therefore excluded from the Agreed Final Order.
RECOMMENDATION: Accordingly, after consideration of all appropriate factors, the Enforcement Committee and Executive Director recommend an Agreed Final Order for an administrative penalty in the amount of $2,000.00 against Accessible Housing Austin!.