Bill
HB 1823
HB 1823 strengthens Oklahoma’s administration of the federal HOME program to ensure federal compliance, transparency, public input, and clearer protections for participants and CHD
Purpose and overall intent
- HB 1823, as amended by a committee substitute, focuses on the administration of the federal HOME Investment Partnerships Program (HOME) within Oklahoma, overseen by the Oklahoma Housing Finance Agency (OHFA).
- The bill establishes definitions, clarifies administration requirements to align with federal law, and strengthens processes around rulemaking, public input, and participant rights. It also asserts state preemption to the extent allowed by federal law and declares an emergency for immediate effect.
Key provisions and changes
1) Definitions and scope
- Defines:
- “HOME Program” as the federal HOME Investment Partnerships Program (Title II of the Cranston-Gonzalez National Affordable Housing Act, and implementing regulations).
- “HOME funds” as all federal HOME allocations and related program income disbursed to Oklahoma and administered by OHFA.
2) Administration of HOME funds
- OHFA must administer the HOME Program in full compliance with federal statute and regulations.
- OHFA must treat HOME funds as federal grants to eligible entities (including nonprofit organizations, public agencies, Community Housing Development Organizations (CHDOs), and local governments) in line with federal HOME requirements.
- OHFA must avoid imposing state-specific requirements on HOME funds that are more stringent or broader than federal HOME statute/regulations, unless expressly authorized by state statute or supported by statewide data and stakeholder input.
3) Rulemaking and public input
- No OHFA rule, policy, manual, guidance, or administrative procedure affecting HOME funds may take effect without:
- Publication in the Oklahoma Register,
- A minimum public comment period of at least 30 days, and
- Consideration of all timely comments.
- Retroactive application of new rule changes is prohibited except as required by changes in federal HOME statute/regulations. Rules cannot retroactively affect awards, contracts, or commitments unless federal law requires it.
4) Participant rights and program protections
- Eligible nonprofit entities may use third-party guarantors or other risk-sharing mechanisms permitted under federal HOME regulations.
- Protections remain in place for participants under federal HOME statute/regulations (compliance, recordkeeping, performance).
- OHFA must provide clear written notice to the public of changes to eligibility, standards, agreements, or requirements at least 60 days before implementation, with explanations of changes.
- Eligible entities must receive a minimum developer fee of 15% with a guaranteed minimum 10% drawdown of developer fees with each reimbursement to cover overhead/operating costs.
- OHFA will remove participation penalties if monitoring findings are resolved within 30 days.
- Participants and the public may submit written comments on program policies, procedures, and OHFA administration to the OHFA Executive Director and Board of Trustees.
- Nonprofit CHDOs are guaranteed retention of program proceeds.
5) Conflicts and preemption
- In case of conflict with other state laws, this section controls to the extent permitted by federal law for OHFA’s administration of the HOME Program.
- OHFA’s obligations must comply with federal HOME statute and HUD requirements.
Effective date and emergency
- The measure declares an emergency, making it effective immediately upon passage and approval.
Procedural and timeline aspects
- Public comment period: minimum 30 days for any new program rule changes.
- 60-day advance notice requirement for changes to eligibility or program terms.
- No retroactive rule changes to already awarded contracts unless federal law requires.
- Emergency designation: act takes effect immediately upon signing.
Potential impact and who is affected
- OHFA: must conform to federal HOME requirements, limit state-added restrictions, and follow enhanced public notice and comment procedures.
- Eligible entities (nonprofits, CHDOs, local governments, and public agencies): gain clearer protections, guaranteed minimum developer fees, and rights to challenge penalties if resolved promptly.
- CHDOs: guaranteed retention of program proceeds.
- General public and participants: expanded access to information and opportunities for comment on program rules and policies.
Overall, the bill strengthens federal HOME program compliance, enhances transparency and public participation in rulemaking, protects participant rights, and sets specific financial and procedural standards for administering HOME funds in Oklahoma.
Compiled from official sources — confirm details with the bill’s official record.
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