Chapter 2306

Texas Department of Housing and Community Affairs

Subchapter A. General Provisions

2306.001 Purposes 2306.002 Policy 2306.003 Public Purpose 2306.004 Definitions 2306.005 References to Former Law 2306.006 Rules of Abolished Agencies 2306.007 Establishing Economically Depressed or Blighted Areas 2306.008 Preservation of Affordable Housing

Subchapter B. Governing Board and Department

2306.022 Application of Sunset Act 2306.024 Board Members: Appointment and Composition 2306.025 Terms of Board Members 2306.027 Eligibility 2306.028 Training 2306.030 Presiding Officer; Other Officers 2306.031 Members' Compensation 2306.032 Board Meetings 2306.0321 Appeal of Board and Department Decisions 2306.033 Removal of Members 2306.034 Disqualification of Members and Certain Employees 2306.035 Lobbyist Restriction 2306.036 Employment of Director 2306.037 Director's Compensation 2306.038 Acting Director 2306.039 Open Meetings and Open Records 2306.040 Department Participation in Legislative Hearing 2306.041 Imposition of Penalty 2306.042 Amount of Penalty 2306.043 Report and Notice of Violation and Penalty 2306.044 Penalty to Be Paid or Hearing Requested 2306.045 Hearing 2306.046 Decision by Board 2306.047 Options Following Decision: Pay or Appeal 2306.048 Stay of Enforcement of Penalty 2306.049 Decision by Court 2306.050 Remittance of Penalty and Interest 2306.0501 Release of Bond 2306.0502 Collection of Penalty 2306.0503 Administrative Procedure 2306.0504 Debarment from Program Participation

Subchapter C. Powers and Duties

2306.051 Separation of Responsibilities 2306.052 Director's Powers and Duties 2306.0521 Organizational Flexibility of Department 2306.053 Department Powers and Duties 2306.054 Special Advisory Councils 2306.055 Transfers from Governor 2306.056 Committees 2306.057 Compliance Assessment Required for Project Approval by Board

Subchapter D. General Administrative Provisions

2306.061 Standards of Conduct 2306.063 Performance Evaluations 2306.064 Equal Employment Opportunities 2306.065 Discrimination Prohibited 2306.066 Information and Complaints 2306.067 Loaned Employees 2306.068 Interagency Cooperation 2306.069 Legal Counsel 2306.0705 General Appropriations Act 2306.071 Funds 2306.072 Annual Low Income Housing Report 2306.0721 Low Income Housing Plan 2306.0722 Preparation of Plan and Report 2306.0723 Report Considered as Rule 2306.0724 Fair Housing Sponsor Report 2306.073 Internal Audit 2306.074 Audit 2306.075 Tax Exemption 2306.076 Insurance 2306.077 Internet Availability 2306.078 Information Regarding Housing for Persons with Disabilities 2306.080 Database Information Specialist 2306.081 Project Compliance; Database 2306.082 Negotiated Rulemaking; Alternative Dispute Resolution 2306.083 Application Requirement for Colonias Projects

Subchapter E. Community Affairs and Community Development Programs

2306.092 Duties Regarding Certain Programs Created under Federal Law 2306.093 Housing Assistance Goal 2306.094 Services for the Homeless 2306.097 Energy Services Program for Low-Income Individuals 2306.0985 Recovery of Funds from Certain Subdivisions

Subchapter F. Housing Finance Division: General Provisions

2306.111 Housing Funds 2306.1111 Uniform Application and Funding Cycles 2306.1113 Ex Parte Communications 2306.1114 Notice of Receipt of Application or Proposed Application 2306.1115 Regional Allocation Formula 2306.112 Preparation and Content of Annual Budget 2306.113 Board Consideration of Annual Budget 2306.114 Filing of Annual Budget 2306.115 Failure to Adopt Annual Budget 2306.116 Amended Annual Budget 2306.117 Payment of Expenses; Indebtedness 2306.118 Deposit of Funds with Texas Treasury Safekeeping Trust Company 2306.119 Selection of Depository for Operating Funds 2306.120 Selection of Depository under Covenants of Bonds or Trust Indentures 2306.121 Records 2306.123 Area Median Income 2306.1231 Federal Poverty Line 2306.124 Rules Regarding Housing Developments 2306.125 Court Actions 2306.126 Exemption from Property Tax 2306.127 Priority for Certain Communities

Subchapter G. Housing Finance Division: General Powers and Duties of Board

2306.141 Rules 2306.142 Authorization of Bonds 2306.143 Alternative to Subprime Lender List 2306.144 Fees for Services and Facilities; Payment of Department Obligations and Expenses 2306.145 Loan Procedures 2306.146 Interest Rates and Amortization Schedules 2306.147 Fees and Penalties 2306.148 Underwriting Standards 2306.149 Approved Mortgage Lenders 2306.150 Property Standards 2306.151 Target Strategy for Bond Proceeds 2306.152 Eligibility Criteria

Subchapter H. Housing Finance Division: General Powers and Duties of Department

2306.171 General Duties of Department Relating to Purposes of Housing Finance Division 2306.1711 Rulemaking Procedures for Certain Programs 2306.172 Acquisition and Use of Money; Depositories 2306.173 Investments 2306.174 Acquisition and Disposition of Property 2306.175 Transfer and Disposition of Property; Manner of Sale 2306.176 Fees 2306.177 Hearings 2306.178 Insurance 2306.179 Investigation 2306.180 Encouraging Home Ownership 2306.181 Targeting Bond Proceeds 2306.182 Loans to Lenders 2306.183 Needs of Qualifying Individuals and Families in Rural Areas and Small Municipalities 2306.184 Disclosure of Fees 2306.185 Long-Term Affordability and Safety of Multifamily Rental Housing Developments 2306.186 Mandatory Deposits to Fund Necessary Repairs 2306.187 Energy Efficiency Standards for Certain Single and Multifamily Dwellings 2306.188 Establishing Home Ownership in Disaster Area

Subchapter I. Housing Finance Division: Funds

2306.201 Housing Trust Fund 2306.202 Use of Housing Trust Fund 2306.203 Rules Regarding Administration of Housing Trust Fund 2306.204 Independent Audit of Housing Trust Fund 2306.205 Transfer of Money to Housing Trust Fund 2306.206 Housing Trust Fund Not Subject to Texas Trust Code 2306.207 Reserve Fund

Subchapter J. Housing Finance Division: Loan Terms and Conditions

2306.221 Housing Development Loans 2306.222 Contracts and Agreements Regarding Housing Developments 2306.223 Criteria for Financing Housing Development of Housing Sponsor 2306.224 Loan Terms and Conditions 2306.225 Ratio of Loan to Development Cost; Amortization Period 2306.226 Interest Rates 2306.227 Prepayment of Mortgage Loans 2306.228 Loan Fees 2306.229 Documents Supporting Mortgage Loans 2306.230 Agreements Regarding Certain Limitations on Housing Sponsors 2306.231 Loan Conditions Relating to Department Powers 2306.232 Texas Housing Agency Loan or Guarantee

Subchapter K. Housing Programs

2306.251 Property Ownership Program 2306.252 Housing Resource Center 2306.253 Homebuyer Education Program 2306.255 Contract for Deed Conversion Program 2306.256 Affordable Housing Preservation Program 2306.2561 Affordable Housing Preservation Program: Loans and Grants 2306.257 Applicant Compliance with State and Federal Laws Prohibiting Discrimination: Certification and Monitoring 2306.258 Transitional Housing Pilot Program 2306.2585 Homeless Housing and Services Program 2306.259 Affordable Housing Research and Information Program

Subchapter L. Housing Finance Division: Regulation of Housing Sponsors

2306.261 Supervising Housing Sponsors 2306.262 Uniform Systems of Accounts and Records 2306.263 Reporting 2306.2631 Reports by Sponsors of Certain Multifamily Housing Developments 2306.264 Inspections and Examinations 2306.265 Operation, Maintenance, and Repair 2306.266 Fees Relating to Regulation 2306.267 Compliance with Applicable Laws, Rules, and Contract Terms 2306.268 Rents and Charges 2306.269 Tenant and Manager Selection 2306.270 Regulation of Retirement of Capital Investment or Redemption of Stock 2306.271 Cost Controls 2306.272 Housing Sponsor Investments 2306.273 Limitation on Application of Certain Provisions of Subchapter

Subchapter M. Housing Finance Division: Purchase and Sale of Mortgage Loans

2306.291 Purchase and Sale of Mortgage Loans 2306.292 Eligibility of Mortgage Loans for Purchase 2306.293 Federally Assisted Mortgage Loans 2306.294 Mortgage Loan Purchase Price 2306.295 Rules Governing Purchase and Sale of Mortgage Loans 2306.296 Review and Substitution of Purchased Mortgage Loans 2306.297 Application of Provisions Relating to Loan Terms and Conditions

Subchapter P. Housing Finance Division Bonds: Issuance of Bonds

2306.351 Issuance of Bonds 2306.352 Texas Housing Bonds 2306.353 Revenue Bonds 2306.354 Definitive Refunding Bonds 2306.355 Issuance of Additional Parity or Subordinate Lien Bonds 2306.356 Issuance of Bonds to Fund Department Reserves or Funds 2306.357 Bonds Issued by Texas Housing Agency 2306.358 Issuance of Qualified 501(C)(3) Bonds 2306.359 Issuance of Private Activity Bonds

Subchapter Q. Housing Finance Division Bonds: Board Action on Bonds

2306.371 Board Authorization of Bonds 2306.372 Department Procedures 2306.373 Use of Bond Proceeds 2306.374 Facsimile Signatures and Seals 2306.375 Personal Liability of Board Member or Director

Subchapter R. Housing Finance Division Bonds: Form; Terms

2306.391 Form 2306.392 Denomination 2306.393 Manner, Price, and Terms 2306.394 Place of Payment; Medium of Exchange 2306.395 Interest on Bonds 2306.396 Maturity of Bonds 2306.397 Redemption Before Maturity; Conversion

Subchapter S. Housing Finance Division Bonds: Security for Bonds

2306.411 Security for Payment of Principal, Interest, and Redemption Premium 2306.412 Validity of Liens and Pledges

Subchapter T. Housing Finance Division Bonds: Approval, Registration, and Execution

2306.431 Approval of Bonds 2306.432 Registration 2306.433 Execution

Subchapter U. Housing Finance Division Bonds: Rights and Remedies of Bondholders and Parties in Interest

2306.451 State Pledge Regarding Bondholder Rights and Remedies 2306.452 Payment Enforceable by Mandamus

Subchapter V. Housing Finance Division Bonds: Obligations of Department and State

2306.471 General Obligation Bonds 2306.472 Department's Bonds Other Than General Obligation Bonds Not Obligations of the State 2306.473 State Not Obligated to Pay; Faith and Credit Not Pledged

Subchapter W. Housing Finance Division Bonds: Miscellaneous Provisions

2306.491 Bonds Negotiable Instruments 2306.492 Bonds Incontestable 2306.493 Signature of Former Officer 2306.494 Bonds Not Taxable 2306.495 Authorized Investments 2306.496 Security for Deposit of Funds 2306.497 Mutilated, Lost, Stolen, or Destroyed Bonds 2306.498 No Gain Allowed

Subchapter X. Individuals with Special Needs

2306.511 Definition 2306.512 Special Needs 2306.513 Housing for Individuals with Special Needs 2306.514 Construction Requirements for Single Family Affordable Housing

Subchapter X-2. Natural Disaster Housing Reconstruction Initiative

2306.541 Natural Disaster Housing Reconstruction Advisory Committee 2306.542 Housing Reconstruction Demonstration Pilot Program

Subchapter Y. Texas State Affordable Housing Corporation

2306.551 Definition 2306.552 Creation 2306.5521 Sunset Provision 2306.553 Purposes 2306.554 Board of Directors and Officers 2306.5541 Terms of Members 2306.5542 Removal of Members 2306.5543 Training 2306.5545 Conflict of Interest Policies 2306.5546 Standards of Conduct 2306.5547 Division of Responsibility 2306.5548 Equal Employment Opportunity Policy 2306.5549 Meetings of the Corporation's Board 2306.555 Powers 2306.5551 Board Delegation of Authority to Issue Bonds or Other Obligations 2306.5552 Technical and Financial Assistance Provided to Nonprofit Organizations 2306.5553 Historically Underutilized Businesses 2306.5555 Public Access 2306.556 Exempt from Taxation and Registration 2306.557 Distribution of Earnings 2306.558 Alteration and Termination 2306.559 Reporting Requirements 2306.560 Audit 2306.561 Liability 2306.5621 Homes for Texas Heroes Home Loan Program 2306.563 Public Benefit Requirement 2306.564 Review of Qualified 501(C)(3) Bond Issuance Policies 2306.565 Issuance of Qualified Residential Rental Project Bonds; Allocation of Bond Funds 2306.566 Coordination Regarding State Low Income Housing Plan 2306.567 Compliance Information 2306.5671 Compliance with Terms of Certain Contracts or Agreements 2306.568 Record of Complaints 2306.569 Effective Use of Technology

Subchapter Z. Colonias

2306.581 Definition 2306.582 Colonia Self-Help Centers: Establishment 2306.583 Self-Help Centers: Designation 2306.584 Colonia Resident Advisory Committee 2306.585 Duties of Colonia Resident Advisory Committee 2306.586 Self-Help Center: Purpose and Services 2306.587 Operation of Self-Help Center; Monitoring 2306.588 Department Liaison to Self-Help Centers 2306.589 Colonia Set-Aside Fund 2306.590 Colonia Initiatives Advisory Committee 2306.591 Manufactured Homes Installed in Colonias

Subchapter AA. Manufactured Housing Division

2306.6001 Definitions 2306.6002 Regulation and Enforcement 2306.6003 Manufactured Housing Board 2306.6004 Manufactured Housing Board Membership 2306.6005 Conflict of Interest 2306.6006 Terms; Vacancy 2306.6007 Presiding Officer 2306.6008 Grounds for Removal 2306.6009 Reimbursement 2306.6010 Meetings 2306.6011 Training 2306.6012 Appropriations; Donations 2306.6013 Budget; Sharing of Department Personnel, Equipment, and Facilities 2306.6014 Division Director 2306.6015 Personnel 2306.6016 Separation of Responsibilities 2306.6017 Standards of Conduct 2306.6018 Equal Employment Opportunity 2306.6020 Rules 2306.6021 Public Participation 2306.6022 Complaints 2306.6023 Negotiated Rulemaking and Alternative Dispute Resolution

Subchapter DD. Low Income Housing Tax Credit Program

2306.6701 Purpose 2306.6702 Definitions 2306.67021 Applicability of Subchapter 2306.67022 Qualified Allocation Plan; Manual 2306.6703 Ineligibility for Consideration 2306.6704 Preapplication Process 2306.67041 On-Line Application System 2306.6705 General Application Requirements 2306.67055 Market Analysis 2306.6706 Additional Application Requirement: Nonprofit Set-Aside Allocation 2306.6707 Additional Application Requirement: Disclosure of Interested Persons 2306.67071 Additional Application Requirement: Notice, Hearing, and Resolution by Certain Governing Bodies 2306.6708 Application Changes or Supplements 2306.6709 Application Log 2306.6710 Evaluation and Underwriting of Applications 2306.6711 Allocation of Housing Tax Credits 2306.6712 Amendment of Application Subsequent to Allocation by Board 2306.6713 Housing Tax Credit and Ownership Transfers 2306.6714 At-Risk Development Set-Aside 2306.6715 Appeal 2306.6716 Fees 2306.6717 Public Information and Hearings 2306.67171 Electronic Mail Notification Service 2306.6718 Elected Officials 2306.6719 Monitoring of Compliance 2306.6720 Enforceability of Applicant Representations 2306.6722 Development Accessibility 2306.6723 Coordination with Rural Development Agency 2306.6724 Deadlines for Allocation of Low Income Housing Tax Credits 2306.6725 Scoring of Applications 2306.6726 Sale of Certain Low Income Housing Tax Credit Developments 2306.6727 Department Purchase of Low Income Housing Tax Credit Property 2306.6728 Department Policy and Procedures Regarding Recipients of Certain Federal Housing Assistance 2306.6729 Qualified Nonprofit Organization 2306.6730 Accessibility Required 2306.6731 Allocation Decision; Reevaluation 2306.6733 Representation by Former Board Member or Other Person 2306.6734 Minority-Owned Businesses 2306.6735 Required Lease Agreement Provisions 2306.6736 Low Income Housing Tax Credits Financed under American Recovery and Reinvestment Act of 2009 2306.6737 Assistance from American Recovery and Reinvestment Act of 2009 2306.6738 Prohibited Practices 2306.6739 Housing Tax Credits Financed Using Federal Emergency Funds 2306.6740 Designation of Certain Areas as Rural

Subchapter FF. Owner-Builder Loan Program

2306.751 Definition 2306.752 Owner-Builder Loan Program 2306.753 Owner-Builder Eligibility 2306.754 Amount of Loan; Loan Terms 2306.755 Nonprofit Owner-Builder Housing Programs 2306.756 Owner-Builder Education Classes 2306.757 Loan Priority for Waiver of Local Government Fees 2306.758 Funding

Subchapter GG. Colonia Model Subdivision Program

2306.781 Definition 2306.782 Establishment of Program 2306.783 Colonia Model Subdivision Revolving Loan Fund 2306.784 Subdivision Compliance 2306.785 Program Loans 2306.786 Administration of Program; Rules

Subchapter HH. Affordable Housing Preservation

2306.801 Definition 2306.802 Multifamily Housing Preservation Classes 2306.803 At-Risk Multifamily Housing: Identification, Prioritization, and Preservation 2306.804 Use of Housing Preservation Resources 2306.805 Housing Preservation Incentives Program

Subchapter II. Multifamily Housing Developments: Preservation of Affordability

2306.851 Application 2306.852 Property Owner Restriction 2306.853 Notice of Intent

Subchapter KK. Interagency Council for the Homeless

2306.901 Definition 2306.902 Advisory Role 2306.903 Membership 2306.904 Operation of Council 2306.905 Duties of Council 2306.906 Duties of State Agency Council Members 2306.907 Public Hearings 2306.908 Report 2306.909 Gifts and Grants 2306.910 Meeting by Teleconference

Subchapter LL. Migrant Labor Housing Facilities

2306.921 Definitions 2306.922 License Required 2306.923 License Application; Application Inspection 2306.924 Inspection 2306.925 Failure to Meet Standards; Reinspection 2306.926 License Issuance; Term; Not Transferable 2306.927 License Posting 2306.928 Inspection of Facilities 2306.929 Fee 2306.930 Suspension or Revocation of License 2306.931 Enforcement; Adoption of Rules 2306.932 Injunctive Relief 2306.933 Civil Penalty 2306.934 Complaint; Notice; Dismissal 2306.935 Remediation of Complaint in General 2306.936 Remediation of Complaint Regarding Certain Violations 2306.937 Retaliation Prohibited 2306.938 Attorney's Fees 2306.939 Interagency Cooperation 2306.940 Outreach and Education

Subchapter MM. Texas First-Time Homebuyer Program

2306.1071 Definitions 2306.1072 Texas First-Time Homebuyer Program 2306.1073 Administration of Program; Rules 2306.1074 Eligibility 2306.1075 Fees 2306.1076 Funding

Subchapter NN. Housing and Health Services Coordination Council

2306.1091 Definitions 2306.1092 Composition 2306.1093 Terms 2306.1094 Operation of Council 2306.1095 Compensation and Reimbursement 2306.1096 Duties; Biennial Report 2306.1097 Gifts and Grants 2306.1098 Duties of Employees Providing Advisory Support to Council

Subchapter OO. Homeless Youth

2306.1101 Definition

Subchapter PP. Property Designated by Political Subdivision for Camping by Homeless Individuals

2306.1121 Definition 2306.1122 Approval Required 2306.1123 Plan Requirements 2306.1124 Approval of Certain Property Prohibited