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The TDHCA convened its board meeting at 10:04 am on December 8, 2022, at the Capital Extension, Hearing Room E2.030, 1100 Congress Avenue, Austin, Texas 78701

December 8 Meeting Summary

TAAHP Staff attended the board meeting and summarized its main takeaways. TDHCA has uploaded the video recording if you would like to watch full meeting.

  • Welcome new Board member, Mr. Holland Harper from Paris, Texas. Governor Abbott appointed Mr. Harper on December 1st. Read bio here
  • Resolution recognizing December. 21st 2022 as National Homeless Persons Memorial Day.
  • Consent Agenda approved except items 1d and 1h which moved to the Action Item Agenda

EXECUTIVE DIRECTOR’S REPORT

Bobby Wilkinson, Executive Director

  • Homeowner assistance fund (HAF) is active. The HAF program is federally funded that can help Texan residents with overdue mortgage payments, property tax, homeowners’ insurance, HOA fees and now recently utilities assistance. Half has been funded or approved. TDHCA has disbursed $259 million and serving 25,000. Average assistance amount is over $10,371 per applicant. 15 intake centers.
  • The Texas Utility Help program is available to homeowners and renters, and its past due utility payments. Received 10,000 applications. And to qualify, household income must be at or below 150% of federal poverty income, which is a much lower threshold than the percent AMI. And at least one occupant in the household must be a U.S. citizen or qualified alien. It’s a federal requirement.
  • Texas Rent Relief program still has $112 million remaining, based on recent allocations received by Treasury. Will process applications till they run out. Texas Supreme Court emergency order establishing eviction dispersion program extended through January 2023.
  • The Compliance Division recently rolled out a new training – covering interview questions and how to properly update a unit status report.  You can view the training on TDHCA Youtube Channel.
  • The Compliance Division hosted a virtual training on October 25th focused on monitoring and inspection requirements for developments that have completed the first 15 years of the affordability. You can view the training on TDHCA Youtube Channel.

ITEM 5: HOME AMERICAN RESCUE PLAN

Naomi Cantu, HOME American Rescue Plan Director

Presentation, discussion, and possible action to authorize the issuance of the 2023 HOME American Rescue Plan Rental Development Notice of Funding Availability and publication in the Texas Register

  • Requesting the release of approximately $49 million for competition within the 2023 HOME ARP Development note. These funds can be used for construction or capitalized operating cost assistance reserves and nonprofit capacity building and nonprofit operating cost assistance.

Board approved

ITEM 6: HOUSING RESOURCE CENTER

Elizabeth Yevich, Director of Housing Resource Center

Presentation, discussion, and possible action on the draft 2023 State of Texas Low Income Housing Plan and Annual Report; proposed repeal of 10 TAC Chapter 1, Subchapter A, General Policies and Procedures, §1.23 concerning State of Texas Low Income Housing Plan and Annual Report; proposed new 10 TAC Chapter 1, Subchapter A, General Policies and Procedures, §1.23 concerning State of Texas Low Income Housing Plan and Annual Report; and directing their publication for public comment in the Texas Register

  • Draft State of Texas Low Income Housing Plan and Annual Report (SLIHP)
  • The slip must be submitted annually to the governor, to the Governor, speaker of the House, the Oversight Committee, not later than 30 days after you, the board approves it, and the final SLIHP must be presented to you no later than March 18th.
  • Required 30 days public comment.
  • Department working on creating a new design layout for the report

ITEM 7: COMMUNITY AFFAIRS

Gavin Reed – Planning & Community Affairs Division

Report on the allocation of Program Year 2023 Community Services Block Grant awards

  • Use funds for staff to help enroll low-income Texas households and utility assistance, case management, weatherization and other programs. They provide referrals to other resources in the community.
  • CSBG funds are also used to provide assistance to persons working to transition out of poverty. The list of entities to receive their proportional share of 2023 CSBG funds is provided in attachment a of the bar, probably on your next page.
  • With your approval, staff will prepare contracts for calendar year 2023 beginning on January 1st for the 39 CSBG eligible entities.

ITEM 8: MULTIFAMILY BOND FINANCE

Teresa Morales; Director Of Multifamily Bonds

  • The quarterly report relating to staff-issued Determination Notices for 2022 Noncompetitive 4% Housing Tax Credit applications. – Teresa Morales, TDHCA Multifamily Bond director – Activity over the last quarter
  • 4% HTC program financed the development of a little more than 14,000 units in this program year
  • Staff has issued 6 determination notices, which represent approximately 1000 total units and 10.6 million in annual 4% credits
  • 37 transactions have closed.
  • We have 23 applications that are currently under review. What this means is we are sitting at a
  • A little over 14,000 affordable units anticipated for 2022.
  • 2021 activity produced a little over 16,000 units
  • Property inventory available on TDHCA website

ITEM 9: MULTIFAMILY FINANCE

Cody Campbell; Director of Multifamily Programs

a) Presentation, discussion, and possible action on an order adopting the repeal of 10 TAC Chapter 13, Multifamily Direct Loan Rule, and an order adopting the new 10 TAC Chapter 13, Multifamily Direct Loan Rule, and directing its publication in the Texas Register for adoption Cody Campbell Director of Multifamily Programs

  • Staff does not recommend removal of the criteria that awards points for having a lower subsidy per unit – the department has an obligation to make the most efficient use of resources possible.
  • Staff does not recommend the removal or modification of the requirement that the owner must have at least 10% equity in the deal when THC is the only source of permanent debt

Board approves

b) Presentation, discussion, and possible action regarding the approval for publication in the Texas Register of the 2023-1 Multifamily Direct Loan Notice of Funding Availability

  • The department has seen a significant increase in our funding over the past few years. In 2019, TDHCA received approximately $11 million in National Housing Trust Fund. For 2022, they received over $47 million, which is an increase of over four times. in just three years. In 2023, There will be approximately $42.5 million in National Housing Trust fund available and 6.1 million in home funding.
  • These funds are being made available in a series of application acceptance periods with a specific list of priorities. The department will take applications until no funds are left and the NOFA is suspended.
  • The first application acceptance will run from January 2nd to January 31st.
  • Applicants will be required to apply for a minimum of $1.5 million or if the amount available through the regional distribution is less than that, they will be required to request the maximum amount available in that region.
  • The next application acceptance date will be for the same group of eligible applicants, but for this. Applications will not be limited to the amount available in the regional distribution. Instead, applicants will be required to request at least four million, but no more than 8 million in funding. These numbers were set based on feedback from the industry relating to the amount of funding realistically needed to complete the developments that are currently unfunded from our 2022 applicant pool. After these application acceptance periods, there are two others, one for applications that propose to have our loan in first lien position and after that there is an open application acceptance.
  • Staff expects that the demand will exceed the supply for these funds and will suspend the NOFA once all available funds have been applied for.
  • The loan products available under it are significantly more standardized and streamlined than they have been in the past.
  • Applicants have the option of either a fully amortizing loan made at 2% interest or for applicants that have a first lien FHA loan, there is a cash flow payment option as required by HUD’s map guide.
  • Limiting the number of loan products available will simplify the review, underwriting and closing processes. And given the current demand for these funds, staff does not anticipate that these more streamlined offerings will prevent us from getting the money out the door.
  • This new NOFA also prioritizes larger loan amounts over smaller ones. Proceeding this way should result in a pipeline of deals that are more realistically manageable, allowing staff to get them to the closing table in a timelier manner.
  • Lastly, this NOFA does not make available all of the departments current funding. There is remaining HOME funding as well as uncommitted NHTF funding from prior years that will either be programmed into this NOFA or released under a separate Nova later in 2023. Staff is intentionally staggering these funds to allow for a reasonable processing time after an application is submitted.
  • Update on the status of MDL – TDHCA has hired three additional staff members and are interviewing others to get fully staffed.

Meeting adjourned at 12:09

The next TDHCA board meeting is on January 10, 2023.