1. (a) In accordance with authority conferred on the Department by Texas Government Code, Chapters 2105 and 2306 and under applicable provisions of federal law the Department has a range of measures it is able to take to address identified instances of noncompliance. In some instances these measures may also require compliance with or adherence to additional federal or state requirements.

2. (b) It is the overarching intent and guiding principle of these rules that full compliance is required, and the enforcement mechanisms provided for herein are intended to be used in a manner which:

   1. (1) Promotes full compliance;
   2. (2) Uses compliance assistance methods and, where needed, enforcement mechanisms, to obtain compliance and to deter noncompliance;
   3. (3) Takes appropriate enforcement action against those who fail to take the necessary and appropriate measures to comply; and
   4. (4) Provides for the exclusion or removal from Department programs, of persons who have demonstrated that they are either unable or unwilling to comply.
3. (c) Any person or entity that enters into a commitment or contract with the Department directly or with a subrecipient of Department financial assistance, setting forth the terms and conditions under which housing tax credits, loans, grants, or any other source of funds or financial assistance from the Department will be made available (collectively the "Program Agreements") is required to comply with all provisions of their respective Program Agreements. Requirements in Program Agreements include requirements to comply with applicable federal or state laws. The failure to comply with any provision of a Program Agreement is, in addition to a breach of such Program Agreement, a violation of this rule.
4. (d) This chapter sets forth the mechanisms that the Department may use to bring about compliant administration of Department funded programs, state or federal, and to ensure that persons who have established, through egregious and/or repetitive noncompliance behavior that they are either unwilling to behave in a compliance manner or are unable to do so.
5. (e) Refer to Chapter 10, Subchapter F of this title (relating to Compliance Monitoring) and/or Chapter 5, Subchapter L of this title (relating to Compliance Monitoring) for detailed information about the monitoring process and remedies available to Persons who disagree with the Department's assessment of their compliance status.

Source Note:The provisions of this §2.101 adopted to be effective November 19, 2014, 39 TexReg 8976.