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 § 2306.6720
ENFORCEABILITY OF APPLICANT REPRESENTATIONS.
Operative Text
Sec. 2306.6720. ENFORCEABILITY OF APPLICANT REPRESENTATIONS. Each material representation made by an applicant to secure a housing tax credit allocation is enforceable by the department and the tenants of the development supported with the allocation. Subject to modification and enforcement as provided by this chapter, a land use restriction agreement that is recorded with respect to a development is considered to state the development owner's ongoing obligations with regard to the matters addressed in the agreement. 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. 3, eff. September 1, 2015.
Under Texas Government Code § 2306.6720, any material representation an applicant makes to obtain a housing tax credit allocation carries legal weight — it is not merely a promise but an enforceable commitment. Both the Texas Department of Housing and Community Affairs and the tenants living in the supported development have the right to enforce those representations. A recorded land use restriction agreement (LURA) is treated as a continuing statement of the development owner's obligations on all matters the agreement covers, subject to any modifications allowed under Chapter 2306.
Plain English — not legal advice.
Section 2306.6720 means that statements made during the housing tax credit application process — about rent levels, tenant eligibility, amenities, or other material matters — do not expire once funding is awarded. Compliant operators treat the recorded land use restriction agreement as a living compliance document and ensure that day-to-day operations align with every material commitment made in the application. Operators generally maintain organized records of application representations and LURA terms so that any question about ongoing obligations can be answered quickly and accurately.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 2306.6720, tenants living in a development that received a housing tax credit allocation have a direct right to enforce the material representations the owner made to secure that allocation. If a development's actual practices appear to diverge from what was promised in the application or recorded in the land use restriction agreement, tenants may have grounds to raise that discrepancy — whether by filing a complaint with the Texas Department of Housing and Community Affairs or by exploring other enforcement paths. Tenant-rights organizations familiar with the Low Income Housing Tax Credit program can help residents understand what representations apply to their specific development and what options exist under Chapter 2306.
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.
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