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Presentation, discussion, and possible action on an order adopting an emergency amendment to 10 Texas Administrative Code Chapter 10, Uniform Multifamily Rules, Subchapter J, Housing Finance Corporation Compliance Monitoring, §10.1204 Audit Requirements; an order proposing an amendment to 10 Texas Administrative Code Chapter 10, Uniform Multifamily Rules, Subchapter J, Housing Finance Corporation Compliance Monitoring, §10.1204 Audit Requirements to be released for public comment; and an order directing both actions to be published 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, this subchapter is responsive to the passage of HB 21 (89th Reg. Session), which granted the Texas Department of Housing and Community Affairs (the Department) compliance monitoring oversight of all Housing Finance Corporation developments;
WHEREAS, HB 21 requires the Department to adopt rules necessary to implement §394.9026 and §394.9027 of Chapter 394, Texas Local Government Code;
WHEREAS, this subchapter was recently adopted by the Department’s Board, but has one issue that requires immediate correction to place the rule into alignment with HB 21 as it relates to the calculation of the Rent Reduction Test on units occupied by households using rental assistance vouchers;
WHEREAS, the rule is in need of emergency revisions to ensure the immediate consistency between the rule and statute and that the revisions are applicable for the audit reports due in 2026;
WHEREAS, such emergency rulemaking is authorized by Texas Government Code §2001.034, which provides that the Department may adopt an emergency rule with abbreviated notice or hearing if it finds that imminent peril to the public welfare, or a requirement of state or federal law, requires adoption on fewer than 30 days' notice;
WHEREAS, pursuant to §2001.034 such emergency rule is adopted for 120 days from the date of the rule’s publication in the Texas Register; and
WHEREAS, simultaneously this same amendment is being adopted by the Board, as reflected in the preamble herein, on a non-emergency basis to be published in the Texas Register and released for public comment from April 24, 2026 to May 24, 2026, and subsequently returned to the Board for final adoption;
NOW, therefore, it is hereby
RESOLVED, that the Board finds that circumstances requiring the amendment to 10 TAC 10.1204 are necessary as a requirement of state law, and present imminent peril to the public welfare;
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 emergency amendment, in the form presented to this meeting, to be published in the Texas Register for immediate adoption for 120 days;
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 non-emergency amendment, in the form presented to this meeting, to be published in the Texas Register for public comment and to be returned to the Board for final adoption; and
FURTHER RESOLVED, in connection therewith, staff is authorized to make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing, including the preparation or revisions to the preamble.
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BACKGROUND
See first pages of attachment