Last month, TDHCA’s Multifamily Compliance staff hosted a webinar recapping 2025 and what is coming in 2026. Across every topic, the message was consistent: start earlier, communicate sooner, and use existing tools to avoid preventable enforcement. Below are the key takeaways owners and managers should build into compliance calendars and internal workflows.
Compliance Monitoring: What Changed in 2025
The Monitor Review Questionnaire now drives documentation.
TDHCA emphasized that the Monitor Review Questionnaire is no longer a passive form. Responses now determine what documentation must be uploaded during a review. In practice, how a property answers the questionnaire dictates what TDHCA expects to see—making it the roadmap for the entire monitoring process.
USR updates improve Section 811 PRA tracking.
TDHCA updated the Unit Status Report (USR) to better identify Section 811 PRA units and elections. This change is intended to improve statewide monitoring and reduce confusion between HTC, HOME, and 811 requirements.
HOME Final Rule finalized; state implementation coming.
The federal HOME Final Rule was finalized in 2025. TDHCA confirmed that state-level implementation and rule updates are expected in 2026.
Elderly-only LURAs require an affirmative decision.
For properties with elderly-only LURAs expiring at the end of the compliance period, TDHCA was clear: owners must either amend the LURA to continue operating as elderly housing or transition to general occupancy, including tenant notice and updates to marketing, signage, and policies. Early coordination with ownership and asset management is critical.
Rent reviews expanded for HOME-ARP and Section 811 PRA.
TDHCA expanded rent-focused reviews for HOME-ARP and 811 PRA units, with close scrutiny on income calculations, rents, fees, and deposits. The goal is early correction before errors escalate into repayment or enforcement.
New centralized compliance inbox.
TDHCA encouraged use of a centralized mailbox to improve consistency and response coordination: [email protected].
Enforcement: What TDHCA Wants Owners to Use Before It’s a Problem
TDHCA stressed that most enforcement referrals stem from missed deadlines, incomplete submissions, or ignoring guidance—not complex violations.
Resources TDHCA expects owners to use proactively:
• NSPIRE Protocol (Self-Inspection Tool). TDHCA encouraged owners to review HUD’s NSPIRE inspection standards and use them to conduct internal self-inspections between official reviews. Properties that score below 70 on a physical inspection should expect another inspection within a year, making proactive NSPIRE self-checks especially important.
• “Technical Support for Avoiding Administrative Penalty Referrals” helps owners/agents avoid the most common enforcement triggers (and it includes practical checklists and reminders).
• TDHCA’s New Owner Training, which staff emphasized that it’s a foundational resource — not just for new owners, but also for property managers and compliance staff who need a clear refresher on expectations. The training includes concrete examples of frequent violations and how to avoid them, and directs viewers to more in-depth, topic-specific trainings available on the department’s website.
Compliance Monitoring in 2026: What to Calendar Now
Key reporting deadlines:
• Annual Owner’s Compliance Report (AOCR): due April 30
USR portion typically opens in January; submit early if data is ready.
• Quarterly Vacancy Reports: due January 10, April 10, July 10, and October 10
If the option isn’t visible in CMTS, contact TDHCA—don’t wait.
Utility allowance submissions (start early):
• Actual Use Utility Allowance: due August 1 (requires a full year of data)
• Written Local Estimate / ECM / HUD Models: due October 1
TDHCA noted many late or missing submissions in 2025 and urged owners to upload ASAP if behind.
Office Hours, Coffee Chats, and Training Changes
TDHCA will continue Compliance Office Hours in 2026 and is adding Coffee Chats—longer, podcast-style discussions running roughly April through August. Staff explicitly invited topic ideas and guest suggestions.
Training delivery is also changing. TDHCA will no longer co-host trainings with TAA and will instead offer in-house, free trainings via GoToMeeting twice per year (spring and fall). Core topics include Housing Tax Credits, Multifamily Direct Loans, NSPIRE/physical inspections, and Income Determination. TDHCA noted that content may change materially between sessions, especially as HOME Final Rule implementation evolves.
Fee Update Tied to Cost-of-Living Adjustment
Effective January 1, 2026, the allowable application administrative fee increases from $5.50 to $5.65. TDHCA emphasized this is a TDHCA-driven COLA adjustment, not a HUD change, and part of a broader effort to index certain fees and thresholds without annual rule amendments. TDHCA also cautioned that income limit releases may again be delayed, so owners should plan conservatively.
Tax Exemptions Compliance Reporting
TDHCA described 2025 as a formative year for both Public Facility Corporations (PFCs) and Housing Finance Corporations (HFCs), marked by overlapping audit cycles, new statutes, and significant stakeholder outreach as oversight systems were built largely from scratch. The message from staff was consistent: 2026 is about narrowing scope, clarifying expectations, and stabilizing audits.
Public Facility Corporations (PFCs)
2025: Overlap and Clarification
TDHCA acknowledged that 2024 and 2025 PFC audits effectively ran concurrently, creating strain for owners and auditors. Much of 2025 focused on answering first-time questions and clarifying how new statutes and rules apply.
Recurring issues included:
• Pre– vs. post–June 18, 2023 developments, which drove most questions about reporting obligations and applicable requirements.
• Regulatory agreement interpretation, with TDHCA emphasizing that PFC agreements are not standardized and vary by deal.
• Fees, which are generally governed by deal documents—not capped by rule.
• Income determination, which follows Section 8 methodology for post–June 18, 2023 developments but may differ for earlier deals based on the regulatory agreement.
2026: Narrower and More Structured
TDHCA emphasized that 2026 changes aim to reduce confusion and focus audits on clear statutory requirements. Key updates:
• Refined audit scope for pre–June 18, 2023 developments.
• A revised PFC audit workbook forthcoming.
• PFC FAQs to be posted based on real audit-cycle questions.
• Continued development of a dedicated PFC/HFC platform (targeted for 2027).
• 2026 PFC audits due June 1, 2026.
Housing Finance Corporations (HFCs)
2025: Foundation Building
HFC oversight was largely preparatory in 2025:
• HB 21 formally assigned TDHCA an HFC oversight role.
• Initial rule implementation steps advanced at the December 11, 2025 board meeting.
2026: Full Implementation
TDHCA described 2026 as the first fully operational year for HFC oversight. Key milestones:
• HFC rule open for public comment December 26, 2025–January 26, 2026.
• An HFC Workbook Roundtable held December 16, 2025.
• A more complete workbook draft expected in January, pending rule adoption.
• Training (Lunch & Learn series) planned after rule adoption, likely post-February 2026.
• 2026 HFC audits due June 1, 2026, conducted by third-party auditors with TDHCA review and corrective action follow-up.
Section 811 PRA
2025: Year in Review
TDHCA described 2025 as a transition year for Section 811 PRA, with changes aimed at catching errors earlier and clarifying how the program differs from HTC and HOME.
• April 2025: TDHCA offered 811 Certifications Training to clarify certification types unique to the 811 PRA program.
• September 2025: TDHCA restructured 811 monitoring by splitting reviews into two tracks:
o Annual desk rent reviews focused on income and asset calculations, rents, fees, deposits, and tenant notices of rent or utility reimbursement changes.
o Eligibility and required forms reviews conducted during a property’s regular 3- or 5-year multifamily monitoring cycle.
• October–November 2025: TDHCA hosted a three-part 811 PRA HOTMA Mini-Series to prepare stakeholders for upcoming federal changes.
2026: What’s Coming
• HOTMA implementation is currently required beginning January 2026 (subject to change pending HUD guidance).
• TDHCA emphasized that additional guidance will be issued as federal direction becomes clearer and reminded owners that accuracy in calculations remains the owner’s responsibility during the transition.
Physical Inspections: NSPIRE Is Fully Here
TDHCA framed 2025 as the year the industry truly adjusted to NSPIRE. Inspectors are seeing improved compliance, particularly around smoke detector placement, outlet protection near water, and hot water heater requirements.
A key shift under NSPIRE is scope: under UPCS there were roughly nine Severe/LT items; under NSPIRE there are nearly 100. TDHCA acknowledged that this makes compliance more challenging and encouraged owners to request extensions early if 24- or 72-hour deadlines cannot be met. Extensions may be granted for good cause, but only if requested before deadlines expire.
TDHCA also reinforced that many enforcement referrals stem not from the original finding, but from late, incomplete, or repetitive corrective action submissions. Owners were urged to start corrections early, read compliance letters carefully, and contact staff promptly with questions.
Looking ahead, Delayed Scoring deficiencies will begin scoring on October 1, 2026, and TDHCA signaled increased oversight of elevator-served properties, including closer coordination with TDLR.
Complaints Are a Compliance Risk
TDHCA emphasized that tenant complaints are one of the most common entry points into compliance and inspections, particularly complaints involving rent overcharges, elevator outages, lack of heat or AC, and unanswered reasonable accommodation requests. Life-safety complaints often prompt immediate outreach or site visits, while documentation-based complaints still carry short response timelines.
A recurring message from staff:
• Do not wait until late in the 90-day corrective action period to begin work.
• Review compliance letters early and contact the staff person who issued the letter with questions.
• Extensions may be granted for good cause—but only if requested before the deadline.
Fair Housing Resources
TDHCA reiterated that Fair Housing staff are available to review written policies and procedures, provide affirmative marketing guidance, share updated toolkits and checklists, and offer recorded trainings via TDHCA’s YouTube channel. Owners were encouraged to request reviews early—formal or informal—to reduce downstream risk.