Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Compliance

Street: 221 East 11th Street, Austin, TX 78701
Mail: PO Box 13941, Austin, TX 78711-3941
Phone: (800) 643-8204
Fax: 512-475-3359

 

Division Overview

The Compliance Division monitors programs funded through the Office of Colonia Initiatives Program, Community Affairs Division, the HOME and Homeless Programs Division, the Housing Trust Fund Program, and all Multifamily Programs (Housing Tax Credits, HOME, Tax Exempt Bonds, Texas Housing Trust Fund, Tax Credit Assistance, Tax Credit Exchange, Neighborhood Stabilization, Section 811 Project Rental Assistance, Tax Credit Assistance Repayment Funds, and the National Housing Trust Fund (NHTF) program).

Compliance objectives are achieved through three sections within the division: Subrecipient Monitoring, Compliance Monitoring, and Physical Inspections.

Subrecipient Monitoring

The Subrecipient Monitoring section is responsible for ensuring compliance with the Department's Utility Assistance, Community Services Block Grant, Weatherization, Emergency Solution Grant, Homeless Housing and Services Program, Self Help Center Program, Neighborhood Stabilization Program and Amy Young Barrier Removal programs. The Subrecipient monitoring section also conducts financial and Davis Bacon reviews for multifamily developments that receive federal funds from the Department. Subrecipient monitors evaluate program compliance and ensure funds are expended in accordance with contract provisions and applicable State and Federal rules, regulations, policies, and related statutes. Subrecipient monitors review necessary program documents and financial records through desk reviews, on-site reviews and onsite Weatherization inspections to ascertain compliance with program requirements.

Earnest Hunt, Director of Subrecipient Monitoring
Phone: (512) 475-4608
Fax: (512) 475-3359

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Compliance Monitoring

The Compliance Monitoring section is responsible for long-term compliance with the multifamily housing programs funded by the Texas Department of Housing and Community Affairs. Compliance monitors conduct reviews to evaluate compliance with income and rent limits as well as other requirements including social services and affirmative marketing. Compliance Monitors conduct reviews at least once every three years. In addition, the Compliance Monitoring section reviews each property's Annual Owner's Compliance Reports as required under Chapter 2306 of the Texas Government Code and other federal regulations. The Compliance Monitoring section provides training for owners and managers.

Wendy Quackenbush, Director of Compliance Monitoring
Phone: (512) 305-8860

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Physical Inspections

The Physical Inspection section of the Compliance Division performs inspections of multifamily developments funded through the Department's Multifamily programs. Inspectors conduct a final construction inspection prior to final allocation of Department funds. At least every three years thereafter a Uniform Physical Condition Standards (UPCS) inspection is performed. Some UPCS inspections are conducted by Department staff; others are outsourced. The Physical Inspection Section oversees the contract with the UPCS vendor and ensures that owners correct all identified deficiencies. Additionally, the section inspects single family homes rebuilt, rehabilitated, receiving down payment assistance or HOME funded rental assistance; home and apartments receiving weatherization funds; structures funded under the Amy Young Barrier Removal Program; conducts Housing Quality Standards evaluations; and reviews Emergency Shelters.

Manuel Pena, Manager of Physical Inspections
Phone: (512) 475-0207

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Noncompliance

Compliance Division correspondence is issued electronically via the “Attachments” section of the Compliance Monitoring and Tracking System (CMTS). The Property, Management Company, and Owner will receive an automated email when correspondence is uploaded. Owners are responsible for maintaining accurate contact information. Corrective action periods:

  • Imminent hazard or threat to health and safety: 30 days
  • Annual Owner’s Compliance Report (AOCR) noncompliance: 30 days1
  • Uniform Physical Condition Standards (UPCS) noncompliance: 90 days
  • File monitoring noncompliance: 90 days
  • Complaints: Specific to the matter

No reminders are sent. Extensions may be possible, but only (1) there is good cause and (2) an extension request is received prior to the end of the corrective action period. To request an extension, correct as much as possible by the deadline and submit a corrective action plan to compliance.extensionrequest@tdhca.state.tx.us, detailing how and when the remaining issue(s) of noncompliance will be corrected. Extensions cannot be approved after the deadline.

Failure to submit timely and complete corrective documentation to the Compliance Division will be:

  • Reported to the IRS (if HTC and within the Compliance Period);
  • Referred to the TDHCA Enforcement Committee for an administrative penalty and/or debarment; and
  • Considered in future funding decisions per 10 TAC §1.301 (Secretary of State).

Tips for avoiding penalties or debarment

Technical Support for Avoiding Administrative Penalty Referrals (PDF) has been compiled to help owners and property managers avoid an administrative penalty or debarment referral. It includes useful tips and guidance to help maintain compliance. It is not all-inclusive and it remains the owner’s responsibility to be aware of all applicable TDHCA statutes, TDHCA rules, and LURA terms.

1. Remember that the AOCR is due via CMTS every April 30th. Quarterly Vacancy Reports / Unit Status Reports are due the 10th of every January, April, July, and October.

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