TDHCA Board Meeting Recap – February 2020

The TDHCA Board convened their monthly board meeting on February 27, 2020. Here is a summary of the board actions:

1. The Board passed the resolution marking February 20, 2020 as the celebratory day for the 20th Anniversary of the Texas Bootstrap Loan Program.
2. Housing Finance Activity Report
   • 2019 Record Year – Highlights listed below:
     • Served 10,177 SF (homeownership) households (30% increase from the FY 2018)
     • First Mortgage Loan Volume at $1.6B (80% increase from FY 2018) – includes the issuance of two successful tax-exempt mortgage revenue bond programs at $331.6M (representing 26% of overall bond revenue volume).
     • Mortgage Credit Certificates (MCCs) – 2,965 issued (32% decrease from FY 2018 – due to PAB volume cap decline for 2019.)
     • TDHCA Borrowers: Average income $58,400 – most of our families served are below 80% AMI. Additionally – the home loan amount distribution ranges from $125K to $225K, with the average at $177K, statewide.
     • The NAHB created an economic impact formula to assess the approximate impact new constructed homes have on the local economy the year they are built. Based on this formula, TDHCA estimated that their new construction loan programs have provided $1B in local wages, over $144M in tax revenue, and 12,422 jobs created. For more information on this economic impact formula, click here.
3. 2020 HTC Program: Feasibility Report Waiver Approved for Rehab Developments
   The Board approved unanimously the waiver for the required feasibility report requirement for rehabilitation applications as part of the 2020 QAP for the HTC Program. Marni Holloway stated that developers were unaware of this change during the public comment period, so the change went undiscovered. The feasibility report includes a current property survey, site plan, and zoning. The department would like to garner information included in this report for rehabilitation applications to determine feasibility but will work with developers on proper language in the next QAP cycle. This is to ensure the information is collected without creating a cost burden on HTC applicants. Applications seeking Direct Loan funds will continue to be required to adhere to federal property standards regardless of the TDHCA rule changes.
4. HTC Applications Deficiencies – Requiring Board Action
   • Four applications in the Houston area, subject to CDBG-DR requirements, missed deadlines due to delayed actions by the city. These applications were approved with no penalty.
   • One application, competing in the at-risk set-aside, failed to meet the readiness to proceed closing requirements. The readiness to proceed scoring item is a 5-point category. The applicant noted that since the at-risk set-aside was undersubscribed, their application would’ve been approved without the 5 points – not taking an award from another applicant. The Board ruled for a 1-point penalty on the applicant on a future HTC application cycle.
   • Two applications in the Houston area failed, who claimed readiness to proceed points, because they failed to meet closing deadline due to a failed appeal for Harvey funding and delay in project planning and permitting. The board ruled for a 2-point penalty on the applicant on a future HTC application cycle.
5. 2020-1 MF Direct Loan NOFA – $13.8M in HOME Funds. This funding is available for the 2020 soft repayment set-aside for: (1) 4% HTC applications using TDHCA Bonds, (2) applications not using 9% HTCs, and (3) 2020 9% HTC applications. Maximum funding per application increased to $2M. Board approved.
6. 2020 -2 MF Direct Loan NOFA – $11.4M in National Housing Trust Funds transferred to the 2020-2B MF Direct Loan NOFA – to be used for eligible MF applications submitted until April 4, 2020. Board approved.
7. 2020-4 MF Direct Loan Special Purpose NOFA -$200K in undedicated Tax Credit Assistance Program Repayment Funds (TCAP RF) – to be used by private non-profits for predevelopment activities. Eligible non-profits include organizations that haven’t received MF development funding since January 1, 2010. The Board approved publication of this NOFA in the Texas Register.
8. The Board approved the publication in the Texas Register of the following approved rules:
   • 10 TAC Chapter 7, Subchapter A, General Policies & Procedures,
   • 10 TAC Chapter 8, Homeless Housing & Services Program,
   • 10 TAC 7.31,7.34,7.36,7.41-44, Emergency Solution Grants, and
   • 10 TAC 7.62 & 7.65, Ending Homelessness Fund
   • Public comment will be accepted from March 13, 2020 to April 13, 2020.
9. The Board approved the inducement of bond funding for two applications, totaling $49M.

The next TDHCA meeting will be March 26th, 2020 at 8:00am at the John H. Reagan Building, Room JHR 140 – 105 W. 15th Street, Austin, Texas 78701

UPCOMING: TDHCA 2021-22 QAP Roundtables

TDHCA will be hosting the 2021-2022 Qualified Allocation Plan (QAP) Roundtables starting Wednesday March 25, 2020, from 2-5pm.

William B. Travis Building
Room 1-104
1701 Congress Avenue
Austin, Texas 78701

The topics to be discussed include Preservation through Extended Affordability, Opportunity Index & Concerted Revitalization Plan, Right of First Refusal, Undesirable Site Features, Neighborhood Risk Factors, and other topics as necessary. For more information, please see The QAP Project Plan.

TAAHP Responds to TDHCA Compliance – PPR & EARAC Rules

TAAHP’s Compliance and Post Award Committee provided public comment on 10 TAC, Chapter 1, Subchapter C, Previous Participation (PPR) and Executive Award Review Advisory Committee (EARAC) rule. Read letter here.