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Presentation, discussion, and possible action on an order proposing the repeal of 10 TAC Chapter 26, Texas Housing Trust Fund Rule, and an order proposing new 10 TAC Chapter 26, Texas Housing Trust Fund Rule, and directing their publication for public comment 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, pursuant to Tex. Gov't Code §2306.202, the Department is required to use the Housing Trust Fund to provide loans, grants, or other comparable forms of assistance to local units of government, public housing authorities, nonprofit organizations and income-eligible individuals, families, and households to finance, acquire, rehabilitate, and develop decent, safe and sanitary housing;
WHEREAS, the proposed new 10 TAC Chapter 26, Texas Housing Trust Fund Rule further clarifies program administration, updates terminology and promotes alignment with the Single Family Umbrella Rule; and
WHEREAS, upon Board approval, the proposed new rule will be submitted to the Texas Register to be released for public comment which will be accepted from December 22, 2023, to January 22, 2024;
NOW, therefore, it is hereby
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 repeal of 10 TAC Chapter 26 and proposed new 10 TAC Chapter 26, regarding the Texas Housing Trust Fund Rule, in the form presented to this meeting, to be published in the Texas Register for public comment and in connection therewith, make such non-substantive technical corrections as they may deem necessary to effectuate the foregoing, including the preparation of the subchapter specific preambles.
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BACKGROUND
The purpose of repealing 10 TAC Chapter 26, Texas Housing Trust Rule, and proposing a new 10 TAC Chapter 26, Texas Housing Trust Fund Rule, is to further clarify program administration, update terminology and promote alignment with the Single Family Umbrella Rule. While the changes included in the proposed new rule are minimal, staff recommends proposed repeal and replacement of the entire chapter in order to solicit public comment on all sections of the rule. Staff has summarized the significant changes proposed to the Texas Housing Trust Fund Rule below. A blackline version with all changes is attached and will be available on the Department’s website during the public comment period.
The Department held a virtual roundtable discussion on November 10, 2023, regarding the Texas Housing Trust Fund Rule and other single family rules being presented under separate items at this meeting. Comments and suggestions received from the roundtable discussions were taken into consideration during the preparation of the proposed Texas Housing Trust Fund Rule as presented at this meeting.
The significant updates proposed to 10 TAC Chapter 26 are:
o Definitions
§ Household Assistance Contract definition added.
o Amy Young Barrier Removal Program Reservation System Requirements
§ All stages of reservation submission and all construction activities must be completed prior to expiration of the Household Assistance Contract rather than separate benchmarks for each of the stages, resulting in reduced administrative burden.
§ Household Assistance Contract will be issued by the Department and shall not to exceed 270 days, unless amended in accordance with 10 TAC §20.13