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Presentation, discussion, and possible action on an order adopting the repeal and adoption of new 10 TAC Chapter 7 Subchapter A, General Policies and Procedures; 10 TAC Chapter 7 Subchapter C, Emergency Solutions Grants (ESG), §§7.31-7.43 and directing their publication 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 (Department) is authorized to adopt rules governing the administration of the Department and its programs;
WHEREAS, staff has evaluated these rules and recommends to the Board that the rule sections be revised and adopted as new rules in order to assist in the administration of the Department’s grants;
WHEREAS, these actions were published in the Texas Register for public comment from January 30, 2026 through March 3, 2026, public comment was received, the rule actions were not amended in response to such comment, and the comment is summarized and responded to in the attached preamble to the rule; and
WHEREAS, staff recommends the repeal and adoption of 10 TAC Chapter 7 Subchapter A, General Policies and Procedures and 10 TAC Chapter 7 Subchapter C, Emergency Solutions Grants (ESG), §§7.31-7.43;
NOW, therefore, it is hereby
RESOLVED, that the repeal and adoption of 10 TAC Chapter 7 Subchapter A, General Policies and Procedures and 10 TAC Chapter 7 Subchapter C, Emergency Solutions Grants (ESG), §§7.31-7.43 are hereby approved; and
FURTHER 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 proposed action herein 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 any requested revisions to the preambles.
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BACKGROUND
The Department last amended 10 TAC Chapter 7 Subchapter A, General Policies and Procedures in February 2024. These rules provide the overarching administrative framework for Chapter 7 programs, including eligibility requirements, application procedures, documentation, monitoring standards, and compliance obligations. Staff identified areas requiring refinement to enhance clarity, remove outdated language, and better align with current federal and state funding regulations. Key updates include standardizing terminology related to Homelessness, clarifying definitions, updating subrecipient contract and reporting requirements, clarifying construction and LURA oversight, and aligning program marketing, records retention, and waiver procedures. Certain subsections, including Contract Termination and Deobligation (§7.9) and Compliance Monitoring (§7.11), were not updated.
The Department last amended the majority of 10 TAC Chapter 7 Subchapter C, Emergency Solutions Grants (ESG), in July 2022, with subsequent updates to individual sections in March 2023 and May 2025. These rules govern ESG program operations, including fund allocation, program eligibility, reporting, and Subrecipient compliance. Staff identified the need for revisions to update terminology, improve clarity, ensure consistency across Chapter 7, and remove outdated references. Key updates include replacing references to ESG CARES with “Special Allocation,” clarifying use of ESG funds and eligibility requirements, standardizing terminology related to Homelessness, and aligning rules with current federal and state program regulations. Certain subsections, including Application Review (§7.37) and General Administrative Requirements (§7.42), were not updated.
The proposed repeal and adoption of new rules for both Subchapter A and Subchapter C were approved by the Board at the January 15, 2026, meeting for publication in the Texas Register for public comment from January 30, 2026, through March 3, 2026. Public comment was received from one commenter, Texas Housers (1), comments are included as Attachment. Staff is not recommending changes to the proposed rules based on comment received. However, staff made a technical update to §7.40, Competitive Program Participant Services Selection Criteria, to clarify scoring related to Language Access. The update specifies that points are awarded when a member of staff is fluent in one or more languages spoken by the population served in the Applicant’s service area, consistent with 10 TAC §7.10(c)(2). This technical correction was made to align the rule with current program administration of 10 TAC §7.10(c)(2) and was not prompted by public comment.
The summary of comment and the Department’s response is provided in the preamble. The rules are now presented to the Board for adoption as proposed.