1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Applicant--A person who submits, or is preparing to submit, to the Department an application for housing funds or other housing assistance from the Department.
   2. (2) Application--The written request for Department housing program funds or other assistance in the format required by the Department including any exhibits or other supporting material.
   3. (3) Board--The board of directors of the Texas Department of Housing and Community Affairs.
   4. (4) Department--The Texas Department of Housing and Community Affairs.
   5. (5) Executive Director--The executive director of the Department.

   6. (6) Housing development--means property or work or a project, building, structure, facility, or undertaking, whether existing, new construction, remodeling, improvement, or rehabilitation, that meets or is designed to meet minimum property standards required by the department and that is financed under the provisions of this chapter for the primary purpose of providing sanitary, decent, and safe dwelling accommodations for rent, lease, use, or purchase by individuals and families of low and very low income and families of moderate income in need of housing. The term includes:

      1. (A) buildings, structures, land, equipment, facilities, or other real or personal properties that are necessary, convenient, or desirable appurtenances, including streets, water, sewers, utilities, parks, site preparation, landscaping, stores, offices, and other non-housing facilities, such as administrative, community, and recreational facilities the department determines to be necessary, convenient, or desirable appurtenances; and
      2. (B) single and multifamily dwellings in rural and urban areas.
   7. (7) Recipient--The individual or entity that has received funds or other assistance from the Department pursuant to its application.

2. (b) Applicable Laws. An applicant may not receive funds or other assistance from the Department until the Department receives a properly completed certification from the applicant that it is in compliance with the following housing laws:

   1. (1) state and federal fair housing laws, including Chapter 301, the Property Code, the Texas Fair Housing Act, Title IV of the Civil Rights Act of 1968 (42 U.S.C. Section 3601, et seq.), and the Fair Housing Amendments of 1988 (42 U.S.C. Section 3601, et seq.);
   2. (2) the Civil Rights Act of 1964 (42 U.S.C. Section 2000a, et seq.);
   3. (3) the Americans with Disabilities Act of 1990 (42 U.S.C. 12101, et seq.); and
   4. (4) the Rehabilitation Act of 1973 (29 U.S.C. Section 701, et seq.).
3. (c) Monitoring. The Department periodically monitors for compliance with the requirements specified in subsection (b) of this section during the construction phase of a housing development that has received funds or other assistance from the Department. The monitoring level for each housing development is based on the amount of risk of noncompliance with the requirements specified in subsection (b) of this section associated with the housing development. The Department shall notify the recipient in writing of an apparent violation and shall afford the recipient a reasonable amount of time, as determined by the Department, to correct the identified violation, if possible, prior to the imposition of a sanction. The Department shall notify the Texas Commission on Human Rights at the same time notification is sent to the recipient.

4. (d) Sanctions. The Department may impose one or more of the following sanctions depending on the severity of the violation of a law specified in subsection (b) of this section by a recipient of housing funds or other assistance from the Department:

   1. (1) a reprimand posted on the Department's website,
   2. (2) termination of assistance, or
   3. (3) a bar on future eligibility for assistance through a housing program administered by the Department. A bar shall be in place for at least one calendar year from the date of imposition by the Department and may not last for more than ten calendar years from the date of imposition.

Source Note:The provisions of this §1.13 adopted to be effective June 30, 2002, 27 TexReg 5519.