Texas Administrative Code Title 10 - COMMUNITY DEVELOPMENT
I. Overview of Title 10 – Community Development
Title 10 of the Texas Administrative Code governs rules related to community development programs administered primarily through the Texas Department of Housing and Community Affairs (TDHCA) and other state agencies that oversee housing, infrastructure, and community service programs.
The purpose of these rules is to:
Promote affordable housing and community revitalization
Administer state and federal grants for local development
Ensure compliance with funding requirements and fair housing laws
Establish eligibility, reporting, and enforcement standards for grantees and local governments
Title 10 also incorporates rules for planning, monitoring, audits, and civil rights compliance in the administration of community development programs.
II. Structure of Title 10
Title 10 is divided into chapters, each covering a specific area of community development:
Chapter 1 – General Provisions: Definitions, scope, and applicability
Chapter 2 – Financial Assistance Programs: Grants, loans, and funding criteria
Chapter 3 – Fair Housing and Civil Rights Compliance: Anti-discrimination, accessibility, and equal opportunity
Chapter 4 – Program Administration and Oversight: Reporting, audits, and monitoring
Chapter 5 – Local Government and Community Requirements: Eligibility, planning, and strategic priorities
III. Key Provisions and Their Meaning
1. General Provisions (Chapter 1)
Definitions: Terms like “grantee,” “subrecipient,” “eligible activity,” and “community development project” are clearly defined.
Applicability: Rules apply to all entities receiving funding under state community development programs, including municipalities, counties, nonprofits, and housing authorities.
Legal Principle: Clear definitions are critical for enforcing compliance and determining eligibility. Courts often refer to the precise language of administrative definitions when disputes arise.
2. Financial Assistance Programs (Chapter 2)
Establishes eligibility criteria for grants and loans, including income limits, project type, and geographic restrictions.
Outlines application procedures, funding priorities, and reporting requirements.
Provides guidance for programmatic compliance, such as allowable uses of funds and recordkeeping.
Legal Principle: Failure to comply with funding rules can trigger repayment obligations, removal of funding, or administrative sanctions. Courts have upheld strict adherence to grant requirements as part of state contract law.
3. Fair Housing and Civil Rights Compliance (Chapter 3)
Requires compliance with federal and state civil rights laws, including the Fair Housing Act and the Texas Fair Housing Act.
Prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin in community development programs.
Requires accessibility compliance for public facilities funded with community development money.
Legal Principle: Courts have enforced anti-discrimination obligations even when funding comes from state-administered programs. Violations can lead to civil penalties, repayment of funds, or litigation.
4. Program Administration and Oversight (Chapter 4)
Establishes monitoring, auditing, and reporting requirements for recipients of community development funds.
Requires documentation of project expenditures, outcomes, and compliance with state and federal rules.
Provides mechanisms for corrective actions if deficiencies are identified.
Legal Principle: Courts generally give deference to administrative oversight, but procedural due process must be observed before penalties are imposed.
5. Local Government and Community Requirements (Chapter 5)
Sets rules for local planning and prioritization of community development activities.
Requires public participation, including hearings and comment periods, to ensure transparency.
Requires grantees to submit strategic plans consistent with state objectives.
Legal Principle: Judicial review often examines whether local and state agencies followed required procedures in approving projects or allocating funds.
IV. Relevant Case Law
1. Texas Department of Housing and Community Affairs v. Inclusive Communities Project (Hypothetical State-Level Analogy)
Principle: Agencies administering housing or community development funds must consider civil rights impacts in their funding allocations.
Courts have ruled that failure to assess or mitigate discriminatory effects can constitute a violation of state or federal civil rights law.
Application: Title 10 requires explicit monitoring and planning to prevent disproportionate impact on protected groups.
2. Grantee Compliance Cases
Texas courts have held that grantees of state-administered funds must strictly follow administrative rules for funding use.
Examples: If funds intended for infrastructure are misused, the agency can demand repayment and deny future funding. Courts usually enforce these obligations as contractual and statutory duties.
3. Administrative Procedure Act Review
Courts have reviewed Title 10 rules under the Texas Administrative Procedure Act (APA).
Key principle: Rules must be promulgated properly, including public notice and comment.
Judicial review ensures that agencies cannot exceed statutory authority in issuing community development regulations.
4. Open Meetings and Public Participation Cases
Some cases highlight that municipalities and councils administering community development funds must hold open meetings and hearings as required by Title 10 rules.
Courts have invalidated funding decisions made without required public hearings or participation.
V. Legal Principles
Compliance is mandatory – all grantees and subrecipients must follow the precise rules for eligibility, funding, and reporting.
Transparency and public participation – agencies and local governments must hold hearings, publish notices, and solicit public input.
Civil rights obligations – funding cannot be allocated or used in ways that discriminate.
Judicial deference with procedural safeguards – courts defer to agency expertise but enforce proper procedures and statutory limits.
Accountability and repayment – misuse of funds triggers repayment and sanctions.
VI. Summary
Title 10 of the Texas Administrative Code – Community Development:
Governs state-funded housing, infrastructure, and community programs
Sets rules for eligibility, funding, reporting, and oversight
Ensures civil rights compliance, transparency, and local participation
Provides mechanisms for monitoring, enforcement, and corrective action
Case law and judicial precedent confirm:
Courts enforce strict compliance with funding rules
Agencies must follow proper procedures in rulemaking and funding decisions
Anti-discrimination and public participation requirements are legally enforceable
Overall, Title 10 ensures orderly, equitable, and legally compliant use of community development funds in Texas.
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