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Presentation, discussion, and possible action on order proposing the repeal of 10 TAC Chapter 23, Single Family HOME Program, and orders proposing new 10 TAC Chapter 23, Single Family HOME Program Rules, and directing their publication for public comment in the Texas Register
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RECOMMENDED ACTION
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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 Department is proposing to repeal all sections of 10 TAC Chapter 23, Single Family HOME Program, and proposing all new 10 TAC Chapter 23, Single Family HOME Program, to maintain compliance with federal and state requirements, conform with the federal HOME Program regulations at 24 CFR Part 92, as amended, and provide for consistency with other provisions of the rule; and
WHEREAS, upon Board approval, the proposed new rule will be submitted to the Texas Register to be published for public comment, which will be accepted November 22, 2024, to December 27, 2024;
NOW, therefore, it is hereby
RESOLVED, that the proposed repeal of 10 TAC Chapter 23, Single Family HOME Program, and new 10 TAC Chapter 23 regarding the Single Family HOME Program are approved for publication in the Texas Register for public comment; and
FURTHER RESOLVED, that the Executive Director and his designees be and each them hereby are authorized, empowered, and directed, for and on behalf of the Department to cause the proposed repeal of 10 TAC Chapter 23, Single Family HOME Program, and new 10 TAC Chapter 23, Single Family HOME Program 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.
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BACKGROUND
The Single Family HOME Program rules at 10 TAC Chapter 23 provide the administrative framework for all Single Family HOME Program activities, including Homeowner Reconstruction Assistance (HRA), Contract for Deed (CFD), Single Family Development (SFD), Tenant-Based Rental Assistance (TBRA), and Homebuyer Assistance with New Construction (HANC).
The purpose of repealing 10 TAC Chapter 23, Single Family HOME Program rule and proposing a new 10 TAC Chapter 23 is to update and implement procedures for implementation of the HOME Program. Changes were made to most subchapters; therefore, the Department is repealing and proposing a new Chapter to replace it instead of amending the existing Chapter. Staff has summarized the significant changes proposed to be made to the Single Family HOME Rule at 10 TAC Chapter 23 below. A black line version with all changes will be available on the Department’s website during the public comment period.
The Department held two roundtable discussions on October 18, 2024, regarding the Single Family HOME Program. The roundtable discussions included the proposed changes to the HOME Single Family rule, with specific focus on construction cost limitations which had been an increasing area of concern for Administrators. Comments and suggestions received from the roundtable discussions were taken into consideration during the preparation of the proposed HOME Rule as presented at this meeting.
Summary of Significant Changes:
• Merges the threshold Application requirements into Subchapter B and removes these from the Activity specific subchapters.
• Increases the amount required for cash reserves to operate prior to reimbursement within the threshold application requirements.
• Increases construction cost limitations, including both hard costs and soft costs, and includes references to federal subsidy and value limitations.
• Adds in a requirement for waivers of customary fees charged by Applicants, which will be provided as Matching contributions for the HOME Program.
• Allows for Single Family Development to be offered as a non-CHDO development activity to increase the number of organizations that may be able to participate.
• Codifies ineligibility of payment of late fees for the TBRA Program.
• Updates the payment standard language for TBRA to include use of HUD’s Small Area Fair Market Rent (SAFMR) in non-metropolitan areas when a SAFMR is published by HUD, and sets a compliance date for use of updated Fair Market Rents (FMRs) and SAFMRs to be January 1 of the year following the date of publication.
• Incorporates the compliance date for the Housing Opportunity Through Modernization Act (HOTMA) as it applies to Single Family HOME Program Activities.