Tex. Gov't Code Ann. §§ 2306.185, 2306.186, 2306.269, 2306.358, 2306.6702, 2306.6713, 2306.6720, 2306.6722, 2306.6726, 2306.6728, 2306.6730, 2306.6735, 2306.6738, 2306.851–2306.853, 2306.921–2306.940 § 2306.6713
HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS.
Operative Text
Sec. 2306.6713. HOUSING TAX CREDIT AND OWNERSHIP TRANSFERS. (a) An applicant may not transfer an allocation of housing tax credits or ownership of a development supported with an allocation of housing tax credits to any person other than an affiliate unless the applicant obtains the director's prior, written approval of the transfer.(b) The director may not unreasonably withhold approval of the transfer. (c) An applicant seeking director approval of a transfer and the proposed transferee must provide to the department a copy of any applicable agreement between the parties to the transfer, including any third-party agreement with the department.(d) On request, an applicant seeking director approval of a transfer must provide to the department:(1) a list of the names of transferees and related parties; and(2) detailed information describing the experience and financial capacity of transferees and related parties.(e) The development owner shall certify to the director that the tenants in the development have been notified in writing of the transfer before the 30th day preceding the date of submission of the transfer request to the department.(f) Not later than the fifth working day after the date the department receives all necessary information under this section, the department shall conduct a qualifications review of a transferee to determine:(1) the transferee's past compliance with all aspects of the low income housing tax credit program, including land use restriction agreements; and(2) the sufficiency of the transferee's experience with developments supported with housing tax credit allocations.(g) The transfer of ownership of a development supported with an allocation of housing tax credits under this section does not subject the development to a right of first refusal under Section 2306.6726 if the transfer is made to a newly formed entity:(1) that is under common control with the development owner; and(2) the primary purpose of the formation of which is to facilitate the financing of the rehabilitation of the development using assistance administered through a state financing program. Added by Acts 2001, 77th Leg., ch. 1367, Sec. 8.01, eff. Sept. 1, 2001.Amended by: Acts 2015, 84th Leg., R.S., Ch. 817 (H.B. 3576), Sec. 2, eff. September 1, 2015.
Under Tex. Gov't Code § 2306.6713, a housing tax credit allocation or the ownership of a development backed by such credits generally cannot be transferred to a non-affiliate without the prior written approval of the department's director. The director is prohibited from withholding that approval unreasonably, and both the transferring party and the proposed new owner must supply relevant agreements and, upon request, detailed information about the transferee's experience and financial capacity. Tenants in the affected development must receive written notice of the transfer at least 30 days before the transfer request is submitted, and the department must complete a qualifications review of the proposed transferee within five working days of receiving all required information.
Plain English — not legal advice.
Property owners and applicants operating under a housing tax credit allocation should be aware that § 2306.6713 requires written director approval before any non-affiliate transfer of credits or ownership can proceed. Compliant operators typically assemble all required documentation—including party agreements, transferee names, and financial-experience details—and ensure that tenants receive written transfer notices no later than 30 days before the transfer request is filed with the department. Owners also generally confirm whether a proposed transfer to a newly formed entity under common control qualifies for the exemption from the right-of-first-refusal requirement described in the same section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 2306.6713 gives tenants in a housing tax credit development the right to receive written notice of a pending ownership transfer at least 30 days before the transfer request is submitted to the department. This notice requirement is a statutory protection, and tenants who believe they did not receive timely notice may wish to contact the Texas Department of Housing and Community Affairs, which administers the housing tax credit program, or reach out to a tenant-rights organization familiar with Texas affordable-housing law. Tenants can also review the department's public records related to the qualifications review process to learn more about a proposed new owner's compliance history.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation