Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 2 - ENFORCEMENT › Subchapter C - ADMINISTRATIVE PENALTIES › Section 2.302 - Administrative Penalty Process

Current through Reg. 49, No. 28; July 12, 2024
(a) The Executive
				  Director will appoint an Enforcement Committee, as defined in §
										2.102 of this chapter (relating to
				  Definitions).
(b) The referring
				  division will recommend the initiation of administrative penalty proceedings to
				  the Committee by referral to the secretary of the Committee (Secretary). At the
				  time of referral for a multifamily rental Development, the referral letter from
				  the referring Division will require the Responsible Party who Controls the
				  Development to provide a listing of the Actively Monitored Developments in
				  their portfolio. The Secretary will use this information to help determine
				  whether mandatory Debarment should be simultaneously considered by the
				  Enforcement Committee in accordance with §2.401(e)(2) of this section,
				  related to repeated violations.
(c)
				  The Secretary shall promptly contact the Responsible Party. If fully acceptable
				  corrective action documentation is submitted to the referring division before
				  the Secretary sends an informal conference notice, the referral shall be closed
				  with no further action provided that the Responsible Party is not subject to
				  consideration for Debarment and provided that the referring division does not
				  wish to move forward with the referral based upon a pattern of repeated
				  violations. If the Secretary is not able to facilitate resolution, but receives
				  a reasonable plan for correction, such plan shall be reported to the Committee
				  to determine whether to schedule an informal conference, modify the plan, or
				  accept the plan. If accepted, plan progress shall be regularly reported to the
				  Committee, but an informal conference will not be held unless the approved plan
				  is substantively violated, or an informal conference is later requested by the
				  Committee or the Responsible Party. Plan examples include but are not limited
				  to: a rehabilitation plan with a scope of work or contracts already in place,
				  plans approved by the Department as part of the Previous Participation Review
				  process provided for in 10 TAC Subchapter C for an ownership transfer or
				  funding application, plans approved by the Executive Director, plans approved
				  by the Asset Management Division, and/or plans relating to newly transferred
				  Developments with unresolved Events of Noncompliance originating under prior
				  ownership. Should the Secretary and Responsible Party fail to come to, an
				  agreement or closer of the referral, or if the Responsible Party or ownership
				  group's prior history of administrative penalty referrals does not support
				  closure, or if consideration of Debarment is appropriate, the Secretary will
				  schedule an informal conference with the Responsible Party to attempt to reach
				  an agreed resolution.
(d) When an
				  informal conference is scheduled, a deadline for submitting Corrective Action
				  documentation will be included, providing a final opportunity for resolution.
				  If compliance is achieved at this stage, the referral will be closed with a
				  warning letter provided that factors, as discussed below, do not preclude such
				  closure. Closure with a warning letter shall be reported to the Committee.
				  Factors that will determine whether it is appropriate to close with a warning
				  letter include, but are not limited to:
(1)
				  Prior Enforcement Committee history relating to the Development or other
				  properties in the ownership group;
(2) Prior Enforcement Committee history
				  regarding similar federal or state Programs;
(3) Whether the deadline set by the Secretary
				  in the informal conference notice has been met;
(4) Whether the Committee has set any
				  exceptions for certain finding types; and
(5) Any other factor that may be relevant to
				  the situation.