The Texas Department of Housing and Community Affairs (TDHCA) released 10 TAC Chapter 11, the Housing Tax Credit Program Qualified Allocation Plan for public comment, as approved by the TDHCA Governing Board on September 7, 2023. The proposed 2024 QAP will be posted to the Department’s website and published in the Texas Register.
Public comment will be accepted between September 22, 2023, and October 13, 2023. Staff will then consider and prepare reasoned responses to public comment as part of the final action on the QAP that will be brought before the Board on November 9, 2023, for approval. Subsequently, the QAP will be submitted to the Office of the Governor not later than November 15, 2023, for him to approve, approve with changes, or reject. Upon the Governor’s approval, approval with modifications, or rejection, which must occur no later than December 1, 2023, the adopted 2024 QAP will be published in the Texas Register and posted to the Department’s website.
Additionally, the Texas Department of Housing and Community Affairs (TDHCA) has updated the Preliminary Draft 2024 selected Site Demographics report. The report contains selected Qualified Allocation Plan (QAP) items for which data are currently available. This report is based on the current version of the preliminary draft 2024 QAP and is subject to change. The report contains new tabs related to the proposed Quantity of Low-Income Units scoring item as well as new data related to proposed changes for the Opportunity Index point category. This document may be found on TDHCA’s website at https://www.tdhca.state.tx.us/multifamily/apply-for-funds.htm.
- JULY 19 | TAAHP convened its annual QAP membership meeting to discuss potential comments and recommendations to the 2024 Qualified Allocation Plan (QAP) and Multifamily Rules.
- AUGUST 3 | The QAP Committee submitted a letter to TDHCA with its recommendations for the Readiness to Proceed provision. [See letter]
- AUGUST 14 | The Texas Department of Housing and Community Affairs (TDHCA) posted its draft of the 2024 Qualified Allocation Plan (QAP). This document may be found here: https://www.tdhca.state.tx.us/multifamily/docs/24-QAP-DRAFT.pdf
- September 7 |TAAHP QAP Committee chairs and members testified at the TDHCA Board Meeting about six concerning items added to the Draft 2024 QAP.
TAAHP Members advocated for change to:
- a proposed Developer fee cap,
- general contractor fee reduction,
- soft cost cap,
- Readiness to Proceed expectations,
- HOME match requirement for all developments, and
- a new scoring item regarding the quantity of low-income units.
After lengthy testimony, the TDHCA board voted to revert the three underwriting items to the existing 2023 language. They also voted to accept TAAHP’s Readiness to Proceed proposal (with an end-of-March deadline to close on land and submit for construction permits). The HOME Match requirement and the new scoring item remain, but it was indicated that both could be removed based on the TDHCA Board’s response to public comment.
TAAHP’s QAP Committee assessment finds that the HOME Match requirement is problematic because it has become more difficult to have matching contributions deemed as acceptable. Additionally, as an untested incentive, the new scoring item is ripe for potential unintended consequences. TAAHP will continue its review of these items and request that they be considered as a concept for the 2025 QAP Roundtable discussions to allow for more deliberation.
TAAHP’s QAP Committee is still gathering comments to consider for inclusion in the formal TAAHP comment letter to the TDHCA. You can send your comments for consideration to firstname.lastname@example.org.
Summary of 2024 QAP Development Initiatives
- APRIL 25: First 2024 QAP Roundtable
- JUNE 16: Second 2024 QAP Roundtable
- JULY 17: Virtual Workgroup about state housing tax credit and related changes for the 2024 QAP.
- AUGUST 14: The Texas Department of Housing and Community Affairs (TDHCA) posted its preliminary draft of the 2024 Qualified Allocation Plan (QAP). This document may be found here: https://www.tdhca.state.tx.us/multifamily/docs/24-QAP-DRAFT.pdf
- AUGUST 15: The QAP and Rules Committee of the Governing Board held a public meeting, during which committee members received comment from the public regarding potential changes for the QAP.
- SEPTEMBER 7: TDHCA Board Meeting – a subsequent draft of the QAP, with variations from the posted version was presented to the board for possible action to approve publication in the Texas Register. The draft 2024 QAP was approved after the removal of four concerning provisions.
- SEPTEMBER 22 – OCTOBER 13: Proposed 2024 QAP posted in the Texas Register and open to public comment.
- LATE OCTOBER/EARLY NOVEMBER: TDHCA Staff will consider and prepare reasoned responses to the public comment as part of the final action on the QAP.
- NOVEMBER 9: Final QAP Approved by the Board.
- NOVEMBER 15: Deadline for TDHCA to submit the 2024 QAP to the Office of the Governor.
- DECEMBER 1: Deadline for Governor to approve, reject, or modify and approve the 2024 QAP.