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Presentation, discussion, and possible action on an order adopting the repeal of 10 TAC Chapter 23, Single Family HOME Program, Subchapter B, and Subchapter F; an order adopting new 10 TAC Chapter 23, Single Family HOME Program, Subchapter B and Subchapter F; and an order directing their publication 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, staff has assessed 10 TAC Chapter 23, Single Family HOME Program, Subchapter B, Availability of Funds, Application Requirements, Review and Award Procedures, General Administrative Requirements, and Resale and Recapture of Funds, and Subchapter F, Single Family Development Program, and recommends amendments to clarify requirements, update threshold requirements, and update requirements for the Single Family Development Program to reduce administrative burden and align with existing loan closing procedures;
WHEREAS, staff has evaluated these rules and recommends to the Board that there is a need for these subchapters to be revised and adopted to add new rules in order to assist in the administration of the program;
WHEREAS, such revisions are being adopted through the repeal of the current rule and a simultaneous new rule to be adopted in its place; and
WHEREAS, these actions were published in the Texas Register for public comment from June 19, 2026 through July 20, 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;
NOW, therefore, it is hereby
RESOLVED, that the repeal of 10 TAC Chapter 23, Single Family HOME Program, Subchapter B, and Subchapter F, and new 10 TAC Chapter 23, Single Family HOME Program, Subchapter B and Subchapter F 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 actions 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 Single Family HOME Program offers the Single Family Development (SFD) program activity to increase the supply of quality affordable housing. SFD offers HOME Program funds in the form of a deferred zero percent interest interim construction loan to developers of affordable housing for low-income homebuyers. To further support the development, funds are offered for developer fees, and the interim loan may be converted into permanent mortgage financing for the homebuyer. The permanent financing is a monthly amortizing loan. Additional funds for the homebuyer may be offered as a separate deferred forgivable loan for closing cost assistance and principal reduction in order to increase affordability, depending on the needs of the homebuyer.
The rule revisions include updates to Subchapter B, related to Availability of Funds, Application Requirements, Review and Award Procedures, General Administrative Requirements, and Resale and Recapture of Funds, and Subchapter F, related specifically to SFD. Changes to Subchapter B focus on updates to threshold requirements for projects and applicants, updates to contract terms and benchmarks, clarifications to allowable costs for construction projects, and removal of minimum size requirements for housing constructed with HOME funds. Changes to Subchapter F related to Single Family Development focus on expanding the program to incorporate flexibilities and incentives for developers of self-help housing, as well as updating the rule to conform to existing loan closing procedures.
The rule proposed for adoption includes one technical correction to remove reference to 10 TAC Chapter 21, which is proposed for repeal based on recommendation of the Texas Regulatory Efficiency Office (TREO), and which is before the Board at this meeting for adoption.
The rule, as proposed, was released for public comment from June 19, 2026, through July 20, 2026, and returned to the Board for final approval. Comment from one commenter, Habitat for Humanity Texas (Amy Ledbetter Parham) was received. A summary of the public comment, as well as the Department’s response, is included in the preamble to the adoption of the rule in Attachment B.