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Presentation, discussion, and possible action on an order proposing amendments to 10 TAC Chapter 8, Project Rental Assistance Program Rule, §8.6, Program Regulations and Requirements, 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, the current rule relating to the Section 811 Project Rental Assistance (811 PRA) Program, is in need of revisions to ensure the rule accurately reflects current Department processes that have been updated over time; and
WHEREAS, such proposed amendments will be published in the Texas Register for public comment from June 28, 2024, to July 28, 2024, and subsequently returned to the Board for final adoption;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each of them are hereby authorized, empowered, and directed, for and on behalf of the Department, to cause the proposed action, together with the preambles in the form presented to this meeting, to be published in the Texas Register for public comment and, in connections, as they may deem necessary to effectuate the forgoing, including the preparation and requested revisions to 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. As it relates to Department programs, Chapter 8 governs the Section 811 PRA Program.
Currently subsection (g)(2) of 10 TAC §8.6, relating to Tenant Selection Plans, indicates that “Upon the execution of the Participation Agreement, the Owner will submit the Eligible Multifamily Property's Tenant Selection Criteria, as defined by and in accordance with §10.8 of this chapter, to the Department for approval.” This is no longer the current practice. Rather the Tenant Selection Plan is reviewed, but not approved, by staff. The amendment to the rule provides for this clarification.
Additionally, revisions have been made to the inspection standard being used. The National Standards for the Physical Inspection of Real Estate (NSPIRE) is the new Housing and Urban Development (HUD) physical inspection standard protocol designed to reduce health and safety hazards in a home. NSPIRE was recently integrated into the Department’s Compliance rules and replaces the Uniform Physical Condition Standards (UPCS) previously used by the Department.
Behind the preamble for the proposed rule action is the rule shown in its blackline form reflecting the amendment proposed to the rule.
Upon Board approval, the proposed section of the rule will be posted to the Department’s website and published in the Texas Register. Public comment will be accepted from June 28, 2024, to July 28, 2024. After consideration for public comment, the amendment will be brought before the Board for final approval and subsequently published in the Texas Register for adoption.
Attachment A: Preamble, including required analysis, for proposed amendments to 10 TAC Chapter 8, Project Rental Assistance Program Rule, §8.6, Program Regulations and Requirements
The Texas Department of Housing and Community Affairs (the Department) proposes amending 10 TAC Chapter 8, Project Rental Assistance Program Rule, §8.6, Program Regulations and Requirements. The amendments will ensure the rule accurately reflects current Department processes that have been updated over time.
FISCAL NOTE. Mr. Bobby Wilkinson, Executive Director, has determined that, for each year of the first five years the amendment to the rule is in effect, enforcing or administering the amendment does not have any foreseeable implications related to costs or revenues of the state or local governments.
a. GOVERNMENT GROWTH IMPACT STATEMENT REQUIRED BY TEX. GOV’T CODE §2001.0221.
1. Mr. Bobby Wilkinson, Executive Director, has determined that, for the first five years the proposed rule action would be in effect, the proposed actions do not create or eliminate a government program, but relate to changes to an existing activity, processes associated with the 811 PRA Program.
2. The proposed amendment to the rule will not require a change in the number of employees of the Department;
3. The proposed amendment to the rule will not require additional future legislative appropriations;
4. The proposed amendment to the rule will result in neither an increase nor a decrease in fees paid to the Department;
5. The proposed amendment to the rule will not create a new regulation, but merely revises a regulation to reference a new inspection protocol;
6. The proposed amendment to the rule will not repeal an existing regulation;
7. The proposed amendment to the rule will not increase or decrease the number of individuals subject to the rule’s applicability; and
8. The proposed amendment to the rule will neither positively nor negatively affect this state’s economy.
PUBLIC BENEFIT/COST NOTE. Mr. Wilkinson also has determined that, for each year of the first five years the amendment to the rule is in effect, the public benefit anticipated as a result of the action will be the clarification of what inspection method may be used and what the cut-off score would be for the NSPIRE inspection. There will not be any economic cost to any individual required to comply with the amendment.
ADVERSE IMPACT ON SMALL OR MICRO-BUSINESSES OR RURAL COMMUNITIES. The Department has determined that there will be no economic effect on small or micro-businesses or rural communities.
REQUEST FOR PUBLIC COMMENT. All comments or questions in response to this action may be submitted in writing from June 28, 2024 to July 28, 2024. Written comments may be submitted to the Texas Department of Housing and Community Affairs to brooke.boston@tdhca.state.tx.us <mailto:brooke.boston@tdhca.state.tx.us>. ALL COMMENTS MUST BE RECEIVED BY 5:00 pm Austin local (Central) time, July 28, 2024.
STATUTORY AUTHORITY. The proposed amendment is made pursuant to Tex. Gov’t Code §2306.053, which authorizes the Department to adopt rules. Except as described herein the proposed amendment affects no other code, article, or statute.