title
Presentation, discussion, and possible action on an order proposing amendments to 10 TAC Chapter Chapter 8, Project Rental Assistance Program Rule, §8.4, Qualification Requirements for Existing Developments, and directing its publication for public comment 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, the current rule relating to the Section 811 Project Rental Assistance (811 PRA) Program, is in need of revisions to ensure that reference to the new inspection protocol of National Standards for Physical Inspections of Real Estate (NSPIRE) is included and that an applicable eligibility scoring cut-off is provided for; and
WHEREAS, such proposed amendments will be published in the Texas Register for public comment from December 22, 2023, to January 22, 2024, 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 action, together with the preambles in the form presented to this meeting, to be published in the Texas Register for public comment and, in connections, as they may deem necessary to effectuate the forgoing, including the preparation and requested revisions to the subchapter specific preambles.
end
BACKGROUND
Tex. Gov’t Code §2306.053 provides for the Department to administer federal housing, community affairs, and community development programs, including the low-income housing tax credit program. As it relates to Department programs, Chapter 8 governs the Section 811 PRA Program.
The National Standards for the Physical Inspection of Real Estate (NSPIRE) is the new Housing and Urban Development (HUD) physical inspection standard protocol designed to reduce health and safety hazards in a home. NSPIRE was recently integrated into the Department’s Compliance rules and replaces the Uniform Physical Condition Standards (UPCS) previously used by the Department. References to UPCS will be retained for a period, however NSPIRE is being added to be sure that all types of inspections would be covered.
The amendment to the rule also adds what the score cut-off must be if the most recent inspection was performed with NSPIRE. While the Department does not have any data yet by which to set the score, anecdotally we are hearing that properties are scoring lower than UPCS scores. This may be because the NSPIRE protocol is very unit focused and heavily weighted on unit deficiencies. There are over 100 life threatening deficiencies compared to the significantly fewer under UPCS. Therefore, staff is recommending in the draft that the threshold score for NSPIRE for 811 be a score of 75. This will assure that only good properties are participating, but will give a little more flexibility on the score.
Behind the proposed preamble for the proposed rule action is the rule shown in its blackline form reflecting changes to the rule.
Upon Board approval, the proposed section of the rule will be posted to the Department’s website and published in the Texas Register. Public comment will be accepted from December 22, 2023, through January 22, 2024. After consideration for public comment, the amendment will be brought before the Board for final approval and subsequently published in the Texas Register for adoption.