Untitled Texas Attorney General Opinion, GA-1037

The question presented: whether a Texas council of governments (COG) qualifies as a "unit of general local government" under the federal HOME Investment Partnerships Program (HOME Program).
HOME Program eligibility is governed by the HOME Investment Partnerships Act, which authorizes HUD to designate participating jurisdictions that are either states or "units of general local government." 42 U.S.C. § 12704(1).
Federal statute defines "unit of general local government" as (1) a general-purpose political subdivision (city, county, etc.), (2) a consortium of such subdivisions recognized by HUD, or (3) an agency/instrumentality established by legislation and designated by the chief executive to act for the jurisdiction.
Texas COGs are chapter 391 regional planning commissions composed of counties/municipalities, established as political subdivisions under Texas law, but they lack taxing authority.
The Washington County Attorney reported that HUD refused to recognize the Brazos Valley COG as a unit of general local government for HOME program purposes and asked whether a COG should be treated as such under federal law.
The Attorney General’s office concluded the determination is governed by federal law and HUD’s discretion; state-law classification alone does not compel a federal designation.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether a Texas COG is a "unit of general local government" under the HOME Act	COG should be treated as a unit of general local government because state law establishes COGs as political subdivisions	HUD (and federal law) controls eligibility; state characterization is not dispositive and HUD has discretion to decide	The AG cannot advise that a COG is such a unit as a matter of federal law; HUD determines eligibility and courts will defer to HUD interpretations unless arbitrary or capricious

Orellana-Monson v. Holder, 685 F.3d 511 (5th Cir.) (courts defer to agency interpretations under Chevron)
Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (Sup. Ct.) (framework for judicial deference to reasonable agency statutory interpretations)