TDHCA Board Meeting Notes

October 8, 2026

Executive Director’s Report

The State Auditor’s Office (SAO) completed an efficiency review of TDHCA. Its recommendations include more automation of manufactured housing inspections, integrating compliance division systems to reduce manual work in programs such as the Housing Trust Fund, simplifying the Amy Young Barrier Removal Program application, and closer coordination with the Texas State Affordable Housing Corporation (TSAHC) on shared programs.
SAO found no significant issues with duplication of effort, office space, staff utilization, outside contractors, or alignment between agency rules and statute. Staff said it is already acting on the recommendations.
Staff confirmed it is preparing for the 2027 legislative session, and the Chairman invited stakeholders to bring statutory cleanup suggestions to staff.
Board action (Item 10): Report only; no vote taken.

The Board approved four-year Colonia Self-Help Center contracts of $500,000 for Starr County and $890,000 for Nueces County. Each contract serves five colonias.
The program is funded with CDBG dollars that TDHCA receives through an agreement with the Texas Department of Agriculture. Funds support public services such as tool lending libraries and technology access, along with self-help reconstruction, rehabilitation, and new construction.
Board action (Item 11): Approved unanimously.

TDHCA’s $300 million Series 2026 C deal closed in August at a 4.95% borrowing cost, about 2.6 times oversubscribed, and was fully reserved by borrowers by September 4.
The upcoming Series 2026 D deal of up to $250 million prices October 13 and 14 into a harder market, with long-term FHA borrowing costs up 75 to 100 basis points since the last deal. TDHCA’s mortgage rates remain about 50 to 75 basis points below comparable Ginnie Mae rates.
Board action (Items 12, 13, and 15): Items 12 and 13 were reports. Item 15, the annual request to waive the statutory 40% set-aside for underserved submarkets, was approved unanimously; staff is seeking a legislative sponsor to fix the requirement in statute.

TDHCA’s largest division, with 45 staff, monitors 2,859 properties and 357,061 units, which Executive Director Bobby Wilkinson noted is more than 10% of the rental housing stock in Texas.
In fiscal year 2026, staff completed 1,084 NSPIRE inspections and 758 file monitoring reviews, and the average inspection score rose from 86 to 88.
A dedicated team has received 467 HFC and PFC audits, with another 146 HFC audits expected, and complaints have more than tripled over the past decade, with 619 handled so far in 2026.
Board action (Item 14): Report only; no vote taken. See the full article on the Compliance Division above.

Bibb Senior Living is a 66-unit 2024 9% development for seniors in Eagle Pass. The completed building has 20.28% less common area than at application and four floors instead of three, with no change to units, set-asides, or amenities. Staff found no effect on scoring.
Board members raised concern about owners requesting amendments after construction is finished, and discussed whether one elevator is adequate for 66 senior units. One member cautioned against imposing building requirements beyond local codes.
The developer explained that seeking an amendment mid-construction triggers re-underwriting and can stall lenders and investors.
Board action (Item 16): Approved unanimously.

Sunset Gardens is a 330-unit 2022 4% acquisition and rehabilitation in Houston. At cost certification, the owner included $1,553,553 in construction-period security contracted directly by the owner and asked that it count toward eligible basis.
Staff treated the cost as job-site security under the QAP’s 14% cap on contractor fees. Because the cap was already exceeded, the reclassification reduces annual credits by $92,903, about $790,000 in equity. Staff recommended denying the owner’s waiver request and said the deal remains feasible.
Board members noted that the Board had required a stronger security plan when the property was awarded because of area crime, and some questioned the timing and documentation of the security expenses.
Board action (Item 17): A motion to deny the waiver failed on a 3-3 vote. The Board then tabled the item so staff can gather more information.

The Board approved $8.2 million in HOME-ARP funds for Family Justice Center Phase 2 in Denton, a 25-unit non-congregate shelter for survivors of domestic violence and sexual assault, with a total project cost of about $8.85 million.
Funds are provided as a 0% deferred loan with a 15-year compliance period.
Board action (Item 18): Approved unanimously.

Providence on Park, a 2021 9% development in Lumberton, missed its December 31, 2025 placed-in-service deadline after the local MUD changed its lift station requirements during construction. The Board reallocated the credits in September.
Hardin County does not issue certificates of occupancy, and the owner believed the architect’s certificate of substantial completion satisfied the deadline. The CPA identified the problem during cost certification, and the owner eventually documented placement in service with a fire marshal certificate.
Staff recommended a one-point penalty in the 2027 9% round for failing to request an extension before the deadline. The development team noted the property is now fully leased and asked the Board not to assess the penalty.
Board action (Item 19): The Board found that the owner did not meet its obligations but voted unanimously not to assess the penalty because of mitigating circumstances.

Connect Hillcroft is a 90-unit 2025 9% development in Houston with $9.5 million in TIRZ financing. An amendment to the interlocal agreement behind that financing required Houston City Council approval, which came on September 2 and delayed closing by about eight months.
With a 22-month construction schedule, completion is expected around September 2028, about nine months past the December 31, 2027 deadline, and the investor will not close without an extension.
This is the first 2025 award to seek force majeure relief under the 2025 QAP, which allows requests only within 180 days of the deadline and after construction starts. Staff took a neutral position, and Board members called the request an exception and a bellwether for similar deals.
Board action (Item 20): Waivers and a one-year extension to December 31, 2028 approved unanimously.

Chairman Leo Vasquez announced that this was his final meeting as Chairman and that he will rotate off the Board after about nine years. He handed the gavel to Vice Chair Kenny Marchant.
Next TDHCA Governing Board meeting scheduled for November 5, 2026 at 10:00 AM at the Greer State Highway Building.
Meeting adjourned at approximately 12:15 PM.