To address the steep increases in building materials, especially lumber, TAAHP leadership provided data and historical precedent information to TDHCA for a report that was provided to the Board of Directors to consider an increase in allocation for 2020. The request amounted to a $5.1 million forward commitment of housing tax credits from 2022, reducing available credits in that year. TDHCA’s board was concerned about the complexity of such a request, including how to determine who would be eligible, and how to allocate. The Board also noted that they needed to consider that the recent 12.5% increase in housing tax credits allocated to the State was temporary, and is scheduled to end this year, returning to 2018 allocation levels — leaving just $60 million in credits that would be available in 2022.

Board members suggested that developers needing additional funding instead seek remedy through the multifamily direct loan program.