TDHCA, through HB 21 passed by the 89th Texas Legislature (Reg. Session), has been tasked with the compliance monitoring oversight of all Housing Finance Corporation (HFC) multifamily residential developments. The law amends Chapter 394 Local Government Code, to apply to HFC-owned multifamily residential developments that do not have low-income housing tax credits under Subchapter DD, Chapter 2306, Government Code, the Low-Income Housing Tax Credit program.

The bill requires TDHCA to adopt rules related to the new compliance monitoring function by January 1, 2026. The Department has drafted a proposed new rule that complies with HB 21, and it is now available for public comment. The proposed rule is available on TDHCA's website at https://www.tdhca.state.tx.us/public-comment.htm.

The public comment period is scheduled from December 26, 2025, through January 26, 2026. Written comments may be submitted to the Texas Department of Housing and Community Affairs, Attn: Wendy Quackenbush, Rule Comments, P.O. Box 13941, Austin, TX 78711-3941, or by email at wendy.quackenbush@tdhca.texas.gov.  

ALL COMMENTS MUST BE RECEIVED BY 5 p.m., Central Time, on January 26, 2026. The first audit reports for the HFC developments subject to the new law are required to be submitted to TDHCA by June 1, 2026, and annually thereafter.