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Presentation, discussion, and possible action on the proposed amendments to 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, §10.406 Ownership Transfers, 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, staff has identified changes to 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, that are needed to: remove the option for a letter of support from the mayor, or if the Development is not within a municipality or its Extra Territorial Jurisdiction (ETJ), remove the option for letter of support from the county judge when an ownership transfer will result in a property tax exemption; and
WHEREAS, such proposed rulemaking will be published in the Texas Register for public comment from May 23, 2025, through June 23, 2025, 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 amendments of §10.406 Ownership Transfers, together with the preambles 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, or preamble-related corrections, as they may deem necessary to effectuate the foregoing, 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, or community development programs, including the low-income housing tax credit program. The Asset Management Division and its Rules, as a whole, are an integral part of administering the Department’s federal housing programs, assisting in reviewing and ensuring the long-term affordability and safety of multifamily rental housing Developments in the Department’s portfolio as required under Tex. Gov’t Code §§2306.185 and 2306.186, and performing the function of processing ownership transfers as required under Tex. Gov’t Code § 2306.6713.
Behind the proposed preamble for the proposed new action, a draft of the proposed amendments is shown in its blackline form reflecting changes to the rules that are proposed for amendment.
The proposed amendments to one section of the 2025 Post Award and Asset Management Requirements reflects staff’s recommendations for the Board’s consideration.
Upon Board approval, the proposed amendments to the Asset Management Rules will be posted to the Department’s website and published in the Texas Register. Public comment will be accepted from May 23, 2025, through June 23, 2025. The proposed amendments to the Asset Management Rules, after consideration of public comment, are anticipated to be brought before the Board in July 2025 for final approval and subsequently published in the Texas Register for adoption.
Summary of Proposed Changes:
1. §10.406 Ownership Transfers.
Staff removed language from §10.406(e) to clarify that letters from the mayor or county judge will not be acceptable as documentation of local support for ownership transfers that involve the addition of a public facility corporation, a housing finance corporation, or a public housing authority prior to the issuance of 8609s that will result in a 100% property tax exemption that was not previously reflected in the Application. These changes will require a resolution of support from the municipality, or if the Development is not within a municipality or its Extra Territorial Jurisdiction (ETJ), a resolution of support from the commissioners court.