1. (a) Purpose. The purpose of this section is to provide procedures for contested case and other evidentiary hearings (adjudicative hearings). This section does not apply to matters such as appeals from staff or Board decisions or waivers, and this section does not in itself create any right to an adjudicative hearing, but merely provides a process for hearings that are otherwise expressly granted by law.
2. (b) SOAH Designation. The Governing Board (the "Board") of the Texas Department of Housing and Community Affairs (the "Department") designates the State Office of Administrative Hearings (SOAH) to hold all adjudicative hearings on the Board's behalf.

3. (c) Initiation of Hearing.

   1. (1) Upon receipt of a pleading or other document that is intended to initiate a contested case or evidentiary proceeding before the Department, the Department shall determine if an adjudicative hearing is provided under the relevant statutory provisions and rules and, if so, will docket the same as a pending proceeding, number it in accordance with any established docket numbering system of the Department, and refer the matter to SOAH for hearing.
   2. (2) SOAH shall acquire jurisdiction over a case when the Department completes and files a Request to Docket Case form, or other form acceptable to SOAH, together with the notice of report to the board required under Texas Government Code, §2306.043 or other pertinent documents giving rise to the case. Once SOAH acquires jurisdiction, all subsequent documents are to be filed with SOAH, with appropriate service upon the opposing party in accordance with this chapter and the rules of SOAH.
   3. (3) Except upon a showing of good cause, all adjudicative hearings in which the Department is a party shall be held at the offices of SOAH located in Austin, Texas.
   4. (4) Nothing in this subchapter shall in any way limit, alter, or abridge the ability of the Department to enter into mediation or alternative dispute resolution at any time prior to or after the holding of the administrative hearing but prior to the adoption of a final order.

4. (d) Service.

   1. (1) Service of a notice of hearing shall be made by hand delivery, regular, first class, registered or certified mail, courier service, or by any other means that is in accordance with the Administrative Procedures Act (APA) and the SOAH rules. The notice of hearing shall be delivered to the Responsible Party at the address of record on file with the Department in accordance with §1.22 of this chapter (relating to Providing Contact Information to the Department).

   2. (2) Service in the manner provided for subparagraphs (A) - (C) of this paragraph shall be prima facie evidence of proper service of a notice of hearing.

      1. (A) Service by hand delivery shall be complete upon hand delivery to the Responsible Party or the Responsible Party's agent at the Responsible Party's address of record.
      2. (B) Service by mail shall be complete upon deposit of the paper, enclosed in a postpaid, properly addressed wrapper, in a post office or official depository under the care and custody of the United States Postal Service.
      3. (C) Service by courier service shall be complete upon deposit of the paper, enclosed in a properly addressed wrapper, in a depository under the care and custody of a courier service.
   3. (3) Service of other documents in adjudicative cases pending before SOAH shall be governed by the rules of SOAH.

5. (e) Proposal for Decision.

   1. (1) Within the time line set out in SOAH rules, after the conclusion of the hearing, the Administrative Law Judge (ALJ) shall prepare and serve on the parties a proposal for decision that includes the ALJ's findings of fact and conclusions of law. Exceptions to the proposal for decision may be filed in accordance with §2001.062 of the Texas Government Code and SOAH rules. Once the proposal for decision is provided to the Executive Director, and the time has expired for filing of any exceptions and replies, the matter shall be placed on the agenda to be considered at a subsequent meeting of the Board.
   2. (2) The Board reserves the right to remand the matter back to SOAH, when warranted in the Board's sole discretion.

Source Note:The provisions of this §1.13 adopted to be effective July 5, 2012, 37 TexReg 4889; amended to be effective September 25, 2014, 39 TexReg 7572.