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Help for Texans

The Texas Department of Housing and Community Affairs (TDHCA) was tasked with compliance monitoring oversight of Public Facilities Corporations (PFC) developments that are required to comply with §303.0421 and §303.0425 of Chapter 303 Local Government Code and that were initiated on or after June 18, 2023. The law amends Chapter 303 Local Government Code, to only apply to PFC-owned multifamily residential developments that do not:

  1. Have at least twenty percent of the development units reserved for public housing;
  2. Participate in the Rental Assistance Demonstration (RAD) program administered by the United States Department of Housing and Urban Development (HUD);
  3. Receive financial assistance administered under Chapter 1372, Government Code, or receive financial assistance from a tax-exempt bond; or
  4. Receive financial assistance administered under Subchapter DD, Chapter 2306, Government Code, the Low Income Housing Tax Credit program.

The first audit reports for the PFC developments subject to the new law are required to be submitted to the TDHCA by June 1, 2024. Subsequent reports are due to the Department no later than June 1 of each year.

Purpose

House Bill 2071 amends the Local Government Code to revise the Public Facility Corporation Act with respect to multifamily residential developments that provide affordable housing. The bill provides statutory reforms to ensure that public facility corporations serve the public purpose and interest of incentivizing the provision of affordable housing intended by the PFC tax exemption. Among other provisions, the bill authorizes a public facility corporation (PFC) or their sponsor to finance, own, or operate a multifamily residential development under specific conditions and provides for the eligibility of such a development for the PFC tax exemption, including additional requirements for beneficial tax treatment and allocations of lower and moderate income housing units. The bill provides for a compliance audit of the public facility user of a development claiming the exemption and provides for a study by the Legislative Budget Board of the long term effects on the state's funding and revenue of property and sales tax exemptions for multifamily housing developments.

PFC Monitoring Regulations

Forms

Auditor’s List

Please note if you choose an Auditor from the list published on the website, they must comply with 10 TAC Section 10.1103(6). If a report is submitted to the Texas Department of Housing and Community Affairs (TDHCA) without an Auditor’s current qualification, it will be rejected; noncompliance will be issued; and the PFC User will need to hire a qualified Auditor at their own expense. TDHCA has not requested proof of current qualifications for inclusion on this list. Additionally, PFC Users are not restricted to Auditors on this list and may select any Auditor who meets the rule’s requirements.

Auditor’s List

PFC Developments

PFC Properties That Have Reported

Reports

Submission of completed Auditor Reports and supporting documentation must be submitted to the following email address: pfc.monitoring@tdhca.texas.gov

Please direct questions or comments to: wendy.quackenbush@tdhca.texas.gov or amy.hammond@tdhca.texas.gov

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