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Presentation, discussion, and possible action on an order adopting the amended 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, and directing its 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 (the Department) is authorized to adopt rules governing the administration of the Department and its programs;
WHEREAS, 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, performing the functions of processing amendments and ownership transfers as required under §§2306.6712 and 2306.6713, and performing essential functions required under various federal program (HOME, HOME-ARP, NSP, NHTF, Exchange, TCAP) rules and under Section 42 of the Internal Revenue Code;
WHEREAS, at its meeting of January 15, 2026, the Board approved for publication and public comment in the Texas Register, the proposed amendments of 10 TAC Chapter 10 Subchapter E concerning the Post Award and Asset Management Requirements;
WHEREAS, the proposed amendments were published in the January 30, 2026, issue of the Texas Register for public comment between January 30, 2026, and March 3, 2026; and
WHEREAS, no public comment was received, and therefore, the final adoption of the rule will be published in the Texas Register as modified herein to meet formatting requirements;
NOW, therefore, it is hereby
RESOLVED, that the final order adopting the amendments to 10 TAC Chapter 10 Subchapter E, together with the preambles presented to the meeting, is hereby ordered and approved for publication in the Texas Register;
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 amended 10 TAC Chapter 10 Subchapter E concerning Post Award and Asset Management Requirements in the form presented to this meeting, to be published in the Texas Register for final adoption, 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, performing the functions of processing amendments and ownership transfers as required under §§2306.6712 and 2306.6713, and performing essential functions required under various federal program (HOME, HOME-ARP, NSP, NHTF, Exchange, TCAP) rules and under Section 42 of the Internal Revenue Code.
While Tex. Gov’t Code provides for direction and authority for certain specific activities for the Division, it does not provide the administrative specificity necessary to address all of the asset management activities that are necessary to ensure all state and federal program requirements are met. As such, these rules set Department policy to the extent necessary to provide for the administrative implementation of federal and state directives and requirements.
Staff recommends that these rules be retained and that this be accomplished through the adopted amendment of the existing rules. The amendments correct references to establish consistency with rules in 10 TAC Chapter 11 Subchapter D; add amendments to Contracts to the rules; identify when an expiration of the target populations for the elderly restrictions can be processed as a non-material LURA amendment; identify requests to opt into the 2025 HOME final rule as a non-material amendment to the Contract; add requirements for material LURA amendment requests that pertain to a right enforceable by a tenant or other third; add a requirement that for Developments subject to the 2025 update to 24 CFR 92 (HOME final rule), the Department and households must be notified at least 30 days prior to a foreclosure and that the notification must include information regarding the rent/income requirements post foreclosure for Developments; add a requirement for Community Housing Development Organization (CHDO) to renew their certification for ownership transfers that occur after April 30, 2026; identify that for ownership transfers, additional notification requirements may apply under 10 TAC §10.607 relating to Reporting Requirements; identify the Right of First Refusal requirements for a Multifamily Direct Loan LURA when the property is subject to the 2025 HOME final rule as identified in 10 TAC §10.601(g) relating to Compliance Monitoring Objectives and Applicability.
The Board approved the publication of the proposed amendments to 10 TAC Subchapter E, concerning Post Award and Asset Management Requirements at the meeting on January 15, 2026, to be published in the Texas Register for public comment. The proposed amendments were published in the January 30, 2026, issue of the Texas Register and made available for public comment from January 30, 2026, through March 3, 2026. No comments to the proposed amendments were received from the public. Therefore, the document attached represents the amended 10 TAC Subchapter E as approved by the Board at the meeting held January 15, 2026, as modified to meet formatting requirements.