The Texas Department of Housing and Community Affairs (TDHCA) announces that the HOME American Rescue Plan (ARP) Rental Housing Notice of Funding Availability (NOFA) has been amended, and the HOME-ARP New Applicants Supplemental Manual, HOME-ARP Gap Financing Supplemental Manual, and HOME-ARP Frequently Asked Questions also have been updated. All are available online at https://www.tdhca.state.tx.us/multifamily/special-initiatives.htm.
Highlights of the changes:
- Updated guidance to include capitalized operating cost assistance (COCA) as a project soft cost. COCA must be included in Tab 30. Development Cost Schedule and the Multifamily Direct Loan Calculator, the latter of which may affect the number of units required through the proportionality test. COCA must also be reflected in Tab 31. Schedule of Sources with loans terms.
- Updated guidance to address HOME-ARP projects with Housing Assistance Payments (HAP) and the extension of the HOME-ARP requirements to the greater of 15 years or the expiration of the HAP contract. If some, but not all, HOME-ARP units receive assistance through a HAP contract, an additional pro forma is required as an attachment.
- An additional $1,872,641 is available for rental development from the HOME-ARP National Housing Trust Fund set-aside.
- HOME-ARP without COCA has authority to layer with Federal Housing Administration (FHA) loans
- The environmental review requirement has been extended and clarified.
- Clarification that there is no HOME-ARP Rental Housing Application Fee.
HOME-ARP staff will be holding an briefing on the changes to the 2023-2 HOME-ARP Rental Housing NOFA First Amendment, 2023 HOME-ARP Manual for Gap Financing Applicants, and 2023 HOME-ARP Supplemental Manual for New Applicants, on Friday, January 26, 2023, at 10:00am Austin local time. The briefing will be recorded and posted at a later date on TDHCA’s You Tube channel. Registration is available online at https://attendee.gotowebinar.com/register/6858039280223103583.
As a reminder, Applicants should complete the Uniform MF Application if they do not have a previous award for multifamily development on that project from TDHCA. Applicants with a previous Department award for the project also requesting HOME-ARP may use the HOME-ARP Gap Financing Application.
If you have questions, please contact Tiara Hardaway, HOME-ARP Manager, at tiara.hardaway@tdhca.state.tx.us.
