Written by Whitney Parra, TAAHP Senior Government Affairs Manager
At its April 9 Board meeting, TDHCA unanimously adopted the final multifamily PRWORA rule. This action implements immigration eligibility verification requirements for multifamily developments with HOME, HOME-ARP Rental, and National Housing Trust Fund (NHTF) units. Under the final rule, all lease signers in affected developments must be verified as U.S. citizens, U.S. nationals, or qualified aliens, with exceptions for certain survivors protected under VAWA and FVPSA.
The rule takes effect August 1, 2026, and applies across 391 TDHCA-monitored properties. While only 9,126 units in those developments receive assistance, owners will have to verify lease signers across the entire property. As a result, the rule’s practical reach extends to all 28,895 units in those developments.
Verification must be completed through acceptable documentation and, where needed, the federal SAVE system. Properties will generally be expected to participate in SAVE directly, though the rule also allows for third-party verification support and Department-facilitated verification.
What Triggered the Rulemaking
As we covered in our February and March newsletters, this rulemaking stems from the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), the 1996 federal law restricting access to certain federal public benefits based on immigration status. In late 2025, HUD directed that HOME, HOME-ARP Rental, and NHTF programs are covered by PRWORA, which in turn required state agencies such as TDHCA to establish an auditable verification process for those programs.
At the same time, HUD’s interpretation became the subject of multi-state litigation, and enforcement was temporarily paused in 21 states, and D.C. Texas was not part of that litigation. In this rulemaking, TDHCA’s position has been that, because Texas was not covered by that pause, the Department needed to continue moving forward with implementation here.
What Changed in the Final Rule
The final rule is substantially improved from the earlier draft. TDHCA incorporated many of the recommendations in the TAAHP and TAA joint comment letter, including revisions to attestation language, the implementation timeline, verification procedures, and record retention standards.
One of the most significant changes was the removal of the draft rule’s reference to “harboring” an illegal alien. The final rule instead uses a lease-based attestation standard tied to whether an occupant who would be required to be on the lease lacks qualified legal status — a clearer and more workable standard for owners and residents.
Other key revisions include a clear August 1, 2026 effective date, giving owners more time to prepare for SAVE agreements, training, and implementation; a clarification that households already verified will not need to be reverified at renewal unless there is a new lease signer; and revised the preambles and required rule analyses to better reflect the operational, administrative, and cost impacts raised in public comment
What Did Not Change
TDHCA did not adopt TAAHP and TAA’s recommendation to limit verification to lease signers in designated assisted units in floating-unit developments. Instead, the final rule applies property-wide in those developments. The practical effect is significant. Across affected properties, the rule expands from 9,126 assisted units to all 28,895 units in those developments. In practical terms, a 100-unit property with 10 HOME units may still have to verify lease signers for all 100 units rather than only the 10 designated assisted units.
Additional Rulemaking Expected in May
The April 9 vote did not resolve every implementation issue. TDHCA indicated that several outstanding operational questions — including delayed SAVE results, waiting list procedures, and dispute and appeal processes — will be addressed through a follow-on rulemaking expected at the May Board meeting, through proposed revisions to 10 TAC §10.802, Written Policies and Procedures. These are important practical questions for properties when verification is delayed or additional documentation is needed, and we will be engaged as that process moves forward.
Acknowledgments
We want to extend a genuine thank you to TDHCA for how it approached this rulemaking — staying engaged, working through difficult questions, and making revisions that made the rule stronger and more workable. We especially want to recognize Deputy Director Brooke Boston, along with Wendy Quackenbush, Amy Hammond, and the Multifamily Compliance team, who did the hard, detailed work of listening carefully, identifying where draft language was creating real problems, and making adjustments where they could.
We also want to thank the Texas Apartment Association (TAA) — and in particular Chris Newton and Sandy Hoy — for their partnership throughout this rulemaking. The collaboration between TAAHP and TAA was essential in identifying shared concerns, developing practical recommendations, and presenting a coordinated response. We are grateful for the opportunity to work alongside TAA on a rulemaking with significant implications for housing providers across Texas.
Finally, we want to thank TAAHP’s Compliance Committee for their support throughout this rulemaking — and in particular Brian Gamble of DeSilva Housing Group and Josh Gold of Nixon Peabody for their contributions and expertise.
Looking Ahead: Introducing the Regulatory Affairs Working Group
This rulemaking is a good example of what is possible when the industry and state agencies work together early and in good faith. As federal requirements continue to change, that kind of engagement will only become more important.
In response, TAAHP has formed the Regulatory Affairs Working Group, operating under the Government Affairs Committee and co-chaired by Josh Gold of Nixon Peabody and Taylor Hawes of Coats Rose. The group was already involved during this rulemaking, and more details about its initiatives will be announced soon.
Moving forward, the Working Group will be focused on building stronger relationships with TDHCA and other housing-related state agencies — making sure the industry’s perspective is available to the people shaping how federal rules get implemented in Texas.