TDHCA has formally reposted the proposed Housing Finance Corporation (HFC) Compliance Monitoring Rule, and the rule is now in its active public comment period.
The draft rule (new 10 TAC Chapter 10) was approved by the TDHCA Governing Board on December 11, 2025 and was scheduled for publication in the December 26, 2025 edition of the Texas Register. The Texas Register version will serve as the official version for public comment.
This rule implements HB 21 (89th Legislature), which assigned TDHCA oversight responsibility for compliance monitoring of HFC multifamily developments, including audit and reporting requirements.
Key Issues TAAHP Is Actively Working to Address
TAAHP is using this public comment period to focus on a limited number of high-impact implementation issues that will directly affect compliance cost, feasibility, and execution for HFC developments. These issues have consistently surfaced through member feedback, subcommittee work, and direct discussions with TDHCA staff.
The primary issues include:
- Definition of Auditor
TAAHP is evaluating the proposed definition of “Auditor” in the rule, which defines an auditor as “an individual who is an independent auditor, a business entity that primarily performs audits and/or a compliance expert with an established history of providing similar audits on housing compliance matters, meeting the criteria established herein.”Based on member feedback and subcommittee discussion, TAAHP is evaluating whether the proposed definition appropriately reflects legislative intent while remaining workable across a range of HFC portfolio structures. TAAHP is also considering how the definition, as drafted, may affect the availability of qualified auditors and the resulting compliance costs for owners. - Fee Structure for Existing HFC Properties
TAAHP is also reviewing TDHCA’s proposed fee methodology, which sets the fee at the greater of $20 per restricted unit or $500, to assess whether it accurately reflects the actual scope of compliance review for existing HFC properties. While the statute assumes future developments will restrict at least 50 percent of units, many existing HFC regulatory agreements impose significantly higher affordability requirements, often 90 percent or more.At the same time, audit sampling under the rule is capped, meaning review workload does not increase proportionally as restricted-unit counts grow. TAAHP’s focus is on ensuring the final fee structure aligns with the work being performed and does not create unintended cost burdens for existing properties operating under legacy agreements.
Public Comment Details
- Comment period opened: 8:00 a.m. (Austin time) on December 26, 2025
- Comment period closes: 5:00 p.m. (Austin time) on January 26, 2026
- Late comments will not be accepted
Written comments may be submitted by mail or email to:
Texas Department of Housing and Community Affairs
Attn: Wendy Quackenbush
P.O. Box 13941
Austin, Texas 78711-3941
TDHCA encourages commenters to reference specific rule sections and clearly explain how proposed language affects implementation, compliance burden, cost, or feasibility. All submitted comments are public information.
What Members Should Do Now
TAAHP will submit formal public comment reflecting coordinated member input and will continue engaging with TDHCA as the rule moves toward final adoption. Members with current or anticipated HFC exposure are encouraged to stay engaged during this comment window, as the decisions made now will define compliance expectations statewide.