Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
Subchapter A. GENERAL POLICIES AND PROCEDURES
The Texas Department of Housing and Community Affairs (the Department) adopts new §1.19, concerning Deobligated Funds, without changes to the text as published in the Texas Register (32 TexReg 1010) dated March 2, 2007. The purpose of this new section is, in accordance with §2306.052(b)(4), Texas Government Code, to establish a procedure for use of funds returned to the Department to make them available to the community.
SUMMARY OF COMMENTS, RESPONSE, AND BOARD ACTION
The Department received one set of written comments from the Texas Association of Community Action Agencies, Inc ("TACAA").
Comment:
TACAA's primary concern is that because the rule is intended to apply to programs under the Community Affairs Division that provisions should be considered that clarify that federal rules will supercede this rule to the extent they conflict, and that the existing deobligation policy with respect to Weatherization, Low Income Home Energy Assistance and Comprehensive Energy Assistance programs should continue as currently applied.
Staff Response:
It is not necessary to state that federal law and policies will take precedence over this rule. To the extent federal law or program rules limit the use of federal funds, such law or rule must be followed by the Department. Moreover, one of the stated purposes of this new rule is to gain flexibility for meeting the goals of the Department including expediting the delivery of funds, meeting state and federal guidelines or statutes, or meeting unexpected needs like disaster relief or the leveraging of additional funds. Therefore the Department believes the suggested changes are not needed.
The new section is adopted pursuant to the authority of the Texas Government Code, Chapter 2306.
The new section affects no other code, article or statute.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 16, 2007.
TRD-200701415
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Effective date: May 6, 2007
Proposal publication date: March 2, 2007
For further information, please call: (512) 475-4595
The Texas Department of Housing and Community Affairs hereby adopts new §1.20 concerning Asset Resolution and Enforcement. The new rule is adopted without changes to the proposed text as published in the March 2, 2007, issue of the Texas Register (32 TexReg 1012).
New §1.20 defines a process for the disposition of department assets for which early delinquency intervention and work out approaches have not been successful. New §1.20 also sets forth compliance penalties to offset the costs associated with additional staff time and recordkeeping caused by non-compliance with department contracts and land use restriction agreements. The adopted new rule also sets forth procedures for processing debarment recommendations. Though the department has a fee schedule to offset the costs associated with regular, routine inspection and monitoring, properties with delinquent loans or that require additional monitoring because of non-compliance issues place additional stress on the department's resources. Accordingly, the department is instituting additional charges or penalties to cover the additional expenses related to resolving loan and compliance problems.
SUMMARY OF COMMENTS, RESPONSE, AND BOARD ACTION
The Department received one set of written comments from the Hon. Lana Wolff, Council Member, District 5, City of Arlington, Texas.
Comment:
Council Member Wolff expressed general support for proposed new §1.20, concerning asset resolution and enforcement for Housing Tax Credit properties. Specifically, the commenter noted how important it is to have actions available for dealing with certain multifamily properties after the 15-year HTC compliance period. The commenter expressed optimism that any new enforcement actions taken at the state level will not displace or delay concurrent enforcement coming from the local level. The commenter requested that, in implementing its new rule, the department be responsive to the local need for timely action. Finally, the commenter requests that a provision be added that would disallow the sale of properties undergoing enforcement action under the rule. As noted by the commenter, this would help assure that the property is not sold to a sympathetic party by its owner simply to avoid final local action.
Staff Response:
Staff agrees it is important to have actions available for dealing with certain multifamily properties after the 15-year HTC compliance period. Staff, however, disagrees that it is necessary to prohibit, in this rule, the sale of the property during a pending enforcement action. Department rules prohibit the transfer of a property without proper notice to the Department under 10 TAC §60.16. Therefore, the potential buyer would be notified of any property deficiencies and would take the property subject to the required improvements. Staff does not believe that local enforcement actions to bring property into local compliance would be impacted. The Department will examine ways to provide local authorities notice of compliance issues.
The new section is adopted pursuant to the authority of the Texas Government Code, Chapter 2306.
The new section affects no other code, article or statute.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 16, 2007.
TRD-200701413
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Effective date: May 6, 2007
Proposal publication date: March 2, 2007
For further information, please call: (512) 475-4595
The Texas Department of Housing and Community Affairs hereby adopts amended §53.62, concerning deobligation of funds, without changes to the proposed text as published in the Texas Register (32 TexReg 1016) dated March 2, 2007. The department has recommended a new administrative rule that will provide stricter guidelines on the timely reprogramming and obligation of funds while also ensuring availability of funds for disasters. Further, this existing deobligation policy has been a challenge because it listed eligible uses of deobligated funds in a specific prioritized order. Because the events that prompt a need for specific eligible use of deobligated funds do not necessarily occur in the same neatly prioritized order as the existing list, it has been challenging to ensure adherence to the priorities listed.
No public comment was received concerning this amendment.
The amended section is adopted pursuant to the authority of the Texas Government Code, Chapter 2306.
The adopted amended section affects no other code, article or statute.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 16, 2007.
TRD-200701414
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Effective date: May 6, 2007
Proposal publication date: March 2, 2007
For further information, please call: (512) 475-4595