TDHCA announces a rule action relating to 10 TAC Section 10.1204 Audit Requirements. This action was approved by the TDHCA Governing Board on April 9, 2026, and will be released for public comment and returned to the Board for final adoption.  The rule action, including the preamble, are expected to be published in the Texas Register edition for April 24, 2026. The published version will constitute the official version for purposes of public comment and can be found at https://www.sos.texas.gov/texreg/index.shtml.

TDHCA, through legislative action in HB 21 (89th Regular Session), is tasked with the compliance monitoring oversight of all Housing Finance Corporation (HFC) multifamily residential developments. The law requires HFC multifamily residential developments to submit an audit report to the Department. Rules addressing this oversight were adopted on March 5, 2026, and submitted to the Texas Register for publication. After the Board's adoption, input was received from stakeholders and members of the Texas Legislature that one issue in particular in the rule was out of alignment with the statutory language relating to the Rent Reduction calculation that is performed. The rule specified in making the Rent Reduction calculation that "Restricted Units occupied by households with Housing Choice Vouchers or rental assistance will utilize the tenant-paid portion of the Rent for the Rent Reduction calculation." However, the statutory language specifies that the rent in the Rent Reduction calculation should be the "rent charged for an income-restricted unit," and does not refer to only a tenant paid portion of that rent. If applied as drafted in the current adopted rule, the HFC Development is attributed a rent reduction for the voucher-holding household that is not in fact being provided by the HFC, but rather the public housing authority subsidizing the voucher.  

To remedy this issue, staff is deleting one line from the rule. The elimination of the rent calculation distinction in cases of Housing Choice Vouchers would have "Rent" figured as with any other tenant. Functionally, it would mean the rent reduction calculation in the case of a voucher household is based on the Maximum Market Rent less the combined tenant paid and voucher paid portions of rent, which is the total rent due on the unit. 

The proposed rule action can be found on the TDHCA Public Comment Center at https://www.tdhca.texas.gov/tdhca-public-comment-center.

Written comments may be submitted to the Texas Department of Housing and Community Affairs, Brooke Boston, via email to brooke.boston@tdhca.texas.gov.

ALL COMMENTS MUST BE RECEIVED BY 5 p.m., Central Time, on May 24, 2026.