TITLE 10.COMMUNITY DEVELOPMENT

Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

Chapter 1. ADMINISTRATION

Subchapter A. GENERAL POLICIES AND PROCEDURES

10 TAC §1.11

The Texas Department of Housing and Community Affairs (TDHCA) proposes new §1.11 to establish procedures for filing an annual fair housing sponsor report with the Texas Department of Housing and Community Affairs and for sanctions. The new section is necessary to comply with Section 2306.0724 of the Texas Government Code, as added by Acts 2001, 77th Legislature, chapter 1367, section 4.02, effective September 1, 2001.

Edwina P. Carrington, Executive Director, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Carrington also has determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of enforcing the section will be to provide the public with current readily available information of TDHCA’s annual housing activities. There will be no effect on persons, small businesses or micro-businesses. There are no anticipated economic costs to persons, small businesses or micro-businesses who are required to comply with the sections as proposed unless a violation of the sections occurs and penalties are assessed for such violation.

Comments may be submitted to Anne O. Paddock, Acting General Counsel, Texas Department of Housing and Community Affairs, P.O. Box 13941, Austin, Texas, 78711-3941 or by email at the following address: apaddock@tdhca.state.tx.us.

The new section is proposed under the Texas Government Code, Chapter 2306.

No other code, article or statute is affected by this proposed new section.

§1.11.Fair Housing Sponsor Report .

(a) Purpose. The purpose of this section is to establish procedures for filing the Fair Housing Sponsor report with the Texas Department of Housing and Community Affairs (the "Department"), pursuant to §2306.0724 of the Texas Government Code (the "Code").

(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Fair Housing Sponsor Report--Data submitted to the Department by the owner of a housing development with 20 or more living units that contains relevant information pursuant to §2306.072(c)(6) of the Code including:

(A) the street address and municipality or county in which the property is located;

(B) the telephone number of the property management or leasing agent;

(C) the total number of units, reported by bedroom size;

(D) the total number of units, reported by bedroom size, designed for individuals who are physically challenged or who have special needs and the number of these individuals served annually;

(E) the rent for each type of rental unit, reported by bedroom size;

(F) the race or ethnic makeup of each project;

(G) the number of units occupied by individuals receiving government-supported housing assistance and the type of assistance received;

(H) the number of units occupied by individuals and families of extremely low income, very low income, low income, moderate income, and other levels of income;

(I) a statement as to whether the property has been notified of a violation of the fair housing law that has been filed with the United States Department of Housing and Urban Development, the Commission on Human Rights, or the United States Department of Justice; and

(J) a statement as to whether the development has any instances of material noncompliance with bond indentures or deed restrictions discovered through the normal monitoring activities and procedures that include meeting occupancy requirements or rent restrictions imposed by deed restriction or finance agreements.

(2) Department--The Texas Department of Housing and Community Affairs.

(3) Financial assistance--Multifamily and single family rental developments that receive financial assistance or administration from the Department including loans, grants, bonds or tax credits.

(4) Property--A housing development that received financial assistance from the Department.

(5) Reporting Year--The 12 month period in which the submission of the Fair Housing Sponsor Report is due.

(c) Procedures. The Department shall require the owner of each housing development that receives financial assistance and that contains 20 or more living units to submit an annual fair housing sponsor report in a department-approved format, available electronically on the Department's website at www.tdhca.state.tx.us, or by hard copy if electronic means are not available to an owner.

(1) Hard copies of the forms are available upon request by phone or mail.

(2) The Department shall maintain the reports in electronic and hard copy formats readily available to the public at no cost.

(3) The report shall use data collected for the previous year current as of and including December 31 of that year, and must be submitted to the Department no later than March 1 of the Reporting Year. The data must be postmarked on or before March 1, or the following business day if March 1st falls on a Sunday or legal holiday. The Department will compile and maintain a list of owners failing to report timely. The Department, not later than March 31st of each year, will mail a late or missing report notification to owners.

(d) Sanctions. In accordance with the provisions of §2306.0724 of the Code, the Executive Director of the Texas Department of Housing and Community Affairs may access and enforce penalties and sanctions against a person who fails to submit the Fair Housing Sponsor Report on or before March 1 of each year.

(1) Effective January 1, 2003, the Executive Director may:

(A) Issue to the person a written reprimand that specifies the violation;

(B) Assess an administrative penalty in an amount equal to $1,000 for each violation in lieu of, or in addition to, any other sanction; and

(C) Deny future requests for departmental funding or other assistance.

(2) Denial of future requests for departmental funding may be assessed only for multiple, consistent and/or repeated violations of failure to submit the annual Fair Housing Sponsor Report by March 1 of each year. For first-time violations, the Department will issue a written reprimand.

(3) If, after investigation of a possible violation and the facts surrounding the possible violation, the Executive Director determines that a violation has occurred, the Executive Director shall issue a written notice or reprimand of violations not later than the 14th day after the date on which the notice of late or missing report was issued to owner. A written notice or reprimand of violations shall specify in detail the late or missing report and shall include any of the following:

(A) recommendation that the owner charged be barred from any future requests for departmental funding and assistance;

(B) recommendation that an administrative penalty under this section be imposed on the owner charged and indication of the penalty amount; or

(C) recommendation that no penalty be assessed if this is the owner’s first violation.

(4) Not later than the 20th day after the date on which the notice or reprimand is received, the owner charged may accept the determination of the Executive Director made under this subsection, including the recommended penalty, or make a written request for a hearing on the determination.

(5) If the owner charged with the violation accepts the determination of the Executive Director, the Executive Director shall issue an order approving the determination and ordering that the owner pay the recommended penalty.

(6) If the owner charged requests a hearing, the Executive Director shall set a hearing and give written notice of the hearing to the owner. The respondent in an administrative hearing shall be entitled to due process and a hearing under the provisions of Code, Chapter 2001 and Chapter 2306. The respondent and the director may enter into a compromise settlement agreement in any contested matter prior to signing of the final order.

(7) Not later than the 30th day after the date on which the order was issued and/or the decision is final, the owner charged shall:

(A) pay the penalty in full; or

(B) file a petition for judicial review contesting the fact of the violation.

(8) If the owner charged does not pay the penalty and does not pursue judicial review, the Executive Director or the attorney general may bring an action for the collection of the penalty.

(9) An owner that has been denied departmental funding or other assistance for failure to submit the fair housing sponsor report timely may be removed from the denial list after reporting timely for at least two consecutive Reporting Years.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 20, 2002.

TRD-200203091

Edwina Carrington

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: June 30, 2002

For further information, please call: (512) 475-3726