The 2027 QAP cycle is off to a constructive start. The May 20 public roundtable and the June 3 Rules Committee meeting generated substantial and productive discussion, and TDHCA staff have been actively engaged with industry input throughout.
What’s Shaping the 2027 QAP Draft
Three efforts are folding into the 2027 draft rather than moving separately: the standard annual cycle, the TREO regulatory efficiency review of Chapter 11, and a clarity-focused reorganization of the QAP by Mark Shelburne and Novogradac that incorporates the TREO comments and is intended to make the plan easier to navigate rather than to change policy. Legislative recommendations follow a separate statutory path to the Governor’s office. The takeaway for members is that the cycle is active on several fronts at once, with real opportunity to shape the result.
Nothing below is final; these reflect where the conversation stands ahead of the staff draft.
Areas of General Agreement
Several refinements drew general agreement during the roundtable and committee discussion:
- Grocery store definition. Removing the hard-to-meet fresh seafood requirement was discussed and drew broad support, which would make it easier for everyday stores to qualify under the tiebreaker.
- Tiebreaker amenities. Discussion favored adding pharmacies, with urgent care still under research, and pointed toward expanding the amenity set from four to five with the nearest three counting. A wider set was also seen as helpful to rural developments that may lack one amenity.
- Undesirable site features. There was general agreement on letting HUD separation standards, where published, count as mitigation, which would give applicants a clearer and more objective path.
- Supportive services. Discussion pointed toward clearer tenant-notice and approval steps when committed services change after award, balancing resident protection with flexibility for grant-funded programs.
Still in Discussion
Several items remain open and are worth tracking as the staff draft develops: the park definition, the jobs scoring category, and how rising program rents compare with softening market rents in Austin and other large metros. The neighborhood risk (crime) standard also remains in this category; the discussion did not change the standard of 18 violent crimes per 1,000 residents or the case-by-case Board mitigation approach, and TDHCA indicated it is compiling research on effective mitigation strategies.
Protecting the 2026 Gains
Much of the 2027 strategy is about preserving last cycle’s progress: removal of Quantity of Low-Income Units from scoring, the revised school proximity tiebreaker, the addition of Opportunity Zones under Community Revitalization Plans, the six-month administrative placed-in-service extension, and removal of the 50 percent rehabilitation cap.
What Comes Next
TDHCA will fold this input into a staff draft, followed by formal publication in the Texas Register in September, a public comment period through October, and final Board adoption in November before the plan advances to the Governor by December 1. The direction so far is positive, and there is meaningful opportunity to shape the draft. Members with input, particularly on items tied to feasibility and production, are encouraged to share it with the QAP Committee.