title
Presentation, discussion, and possible action on an order adopting amendments to 10 Texas Administrative Code Chapter 10, Uniform Multifamily Rules, Subchapter I, Public Facility Corporation Compliance Monitoring §10.1103 Reporting Requirements and directing it will be published for adoption in the Texas Register
end
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 recommends to the Board that there is a continuing need for the rule to exist, which will ensure compliance with HB 2071 (88th Regular Legislature), that will ensure that Developments owned by Public Facility Corporations (PFC) are required to submit an Annual Audit Report to the Department in accordance with the provisions of HB 2071;
WHEREAS, at the meeting of July 25, 2024, the Board approved for publication and public comment in the Texas Register the proposed amendment of 10 TAC Chapter 10 Subchapter I concerning the Public Facilities Corporation Compliance Monitoring Rule;
WHERAS, public comment was accepted from August 9, 2024, through September 9, 2024, and staff received comment from twenty-four entities and has prepared a reasoned response; and
WHEREAS, the adoption of this amendment will be published in the Texas Register;
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 adopted amendments of 10 TAC Chapter 10, Subchapter I, the Public Facilities Corporation Compliance Monitoring Rule in the form presented to this meeting, to be published in the Texas Register and in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing, including the preparation of the subchapter specific preambles.
end
BACKGROUND
The Department was tasked with the compliance monitoring oversight of Public Facility Corporation (PFC) Multifamily Residential Developments as a result of HB 2071 (the Act) being passed by the 88th Texas Legislature. While HB 2071 provides direction and authority of the monitoring requirements of PFC Developments, it does not provide the administrative specificity to fully implement this activity. As such, these rules set Department policy only so far as they provide the administrative implementation of the statutory activity.
The Department is seeking to adopt the rule to codify Section 10(d) of HB 2071, so that all PFC Multifamily Residential Developments owned by a corporation created under Chapter 303 of the Texas Local Government Code, with the exception of those described in Tex. Local Gov’t Code §303.421(a)(1)-(4), must annually submit an Audit Report to the Department.
The first audit reports for PFC developments subject to the new law were required to be submitted to the Department by June 1, 2024. The Department has granted a one-time extension to allow all PFC-owned multifamily residential developments subject to the rule amendment to submit the required Audit Report no later than December 15, 2024. The submission deadline has been extended two-weeks to provide PFC developments to report. The Department may also grant an additional 30-days extension only if there is good cause for granting an extension and the PFC User request an extension no later than December 15, 2024. Request for an extension may be submitted to: pfc.monitoring@tdhca.texas.gov <mailto:pfc.monitoring@tdhca.texas.gov>. Subsequent reports are due to the Department no later than June 1 of each year.
At the Board meeting on July 25, 2024, the Board approved the publication of the proposed amendment for the Public Facility Corporation Compliance Monitoring Rule. The proposed amendment was published in the Texas Register and released for public comment from August 9, 2024, through September 9, 2024. Twenty-four comments were received related to the proposed changes and are included as Attachment B to this item. Staff has reviewed all comments and provided a reasoned response to these comments in the following preamble.
Behind the preamble for the proposed amendment for adoption action, a draft of the rule is shown. The original blackline version of the rule with no updates will be posted in the Texas Register, as proposed by the Department after consideration of public comment.