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The TDHCA convened its board meeting at 10:01am on February 6, 2024, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.

February 6 Meeting Summary

TAAHP Staff attended the board meeting and summarized its main takeaways.

Consent Agenda Approved

AGENDA ITEM 23: Executive Director’s Report

Bobby Wilkinson Executive Director, TDHCA

  • In 2023, TDHCA’s real estate analysis group published 235 underwriting reports, which doesn’t even include 13 additional reports that weren’t published due the application being withdrawn by the applicant. This is a 13% increase in reports from 2022.
  • Asset Management – Last year, TDHCA started a peer review system to expedite the final approval of cost certifications. This resulted in the second highest number of developments receiving their IRS Form 8609 in a year.
    • 2023 – TDHCA issued 111 8609s. This is the second highest number of developments receiving their IRS Form 8609 in a year. The record being 113 in 2021.
    • 2024 is expected to be another record year.
  • TDHCA recently submitted a bid for additional Section 811 funds, which is a project-based rental assistance program for extremely low-income persons with disabilities and is linked with long-term services. The program is made possible through partnership between TDHCA and the Texas Health and Human Services Commission and eligible multifamily properties. If awarded, TDHCA would receive about 8 million in additional funding resulting in 108 at risk Texans getting housed.
  • Multifamily Compliance Division will be launched a new virtual live webinar, called Office Hours, and will occur the second Friday of each month from 9 am to 12 pm. They will conduct a training on a topic, and then open up the floor for additional questions.
  • Homeowner assistance fund (HAF) is active – with only a couple months left. 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.
    • HAF has provided assistance to almost 58,000 unique households with an average assistance amount per household totaling $12,233. TDHCA has distributed $717 million in assistance pay to date.
    • $3.2 million is approved payment scheduled and there’s about $6 million funds remaining.
    • There are approximately 2,000 submitted HAF applications in queue requiring review and decision. Staff estimates review and decision of these 2,000 applications will require about two more months.

AGENDA ITEM 27-28: Home ARP

  • Presentation, discussion, and possible action regarding a waiver of 10 TAC §13.8(b)(6) regarding 10% of Owner Equity in the Total Housing Development Costs and an award from the 2023-2 HOME American Rescue Plan Rental Notice of Funding Availability (NOFA)
  • 10 TAC §13.8(b)(6) states that the development owner must provide equity in the amount, not less than 10% of the total housing development costs. If TDHCA direct loan including HOME-ARP is the only permanent source of department funding, the code also outlines a waiver process for this requirement.
  • The Board approved the waiver request for less than 10% of owner equity for the two projects.

AGENDA ITEM 30: Rules

  • Presentation, discussion, and possible action on an order adopting new 10 Texas Administrative Code Chapter 10, Uniform Multifamily Rules, Subchapter I, Public Facility Corporation Compliance Monitoring and directing that they will be published for adoption in the Texas Register
  • The PFC rule was out for public comment in the Texas Register between November 10th and December the 11th. Ten entities provided comments – including TAAHP. The department used the public comments to help update and fine tune the rule to ensure it aligns with the purpose and requirements of HB 2071.
  • HB 2071 Background: A PFC is a nonprofit corporation that is eligible for 100% property tax abatement, which can be created by municipality, a county, a school district, a housing authority, or special district known as a sponsor. Under Chapter 303 of Texas Local Government Code, a PFC may use a sponsor to acquire, construct, and rehabilitate and multifamily development for public use.
  • The first PFC audit reports are subject to the new law or required to be submitted to the department by June 1st, 2024.
  • Changes to the rule include;
    • Several updates to the definition section to better clarify terms and delete unnecessary ones
    • Clarify what PFC entities are required to report, elaborate on procedures and timelines if noncompliance is found and to make clear who will be notified if noncompliance is not corrected within the 60-day deadline.
    • Differentiating the percentage of units set aside for new construction versus acquired occupied developments.
    • Better clarify income and rent restrictions.
    • Included an outline of what an independent auditor must examine and what tools must be implemented for their review.
    • Set minimum and maximum thresholds on the number of household files that must be reviewed and record retention requirements.
  • No public comment was given.
  • The board approved to adopt the new 10 TAC Chapter 10, Subchapter L, Public Facilities Corporation compliance monitoring.

AGENDA ITEM 33: Multifamily Finance

  • Presentation, discussion, and possible action on a waiver of 10 TAC §11.1(e) for Lincoln Ridge Apartments (#24130)
  • Lincoln Ridge Apartments, is a 2024 housing tax credit pre-application located in Cleburne. It is applying for opportunity index points.
  • Each year, TDHCA gets the census data and uses Excel to sort census tracts into regions which are then divided into quartiles based on median income. To qualify for opportunity index points, you must be in at least the third quartile.
  • The region that this pre-application is located in contains a number of census tracts that is not evenly divisible by four, which means that one of the quartiles has to have one fewer census tracts than the rest.
  • When Excel generated the quartiles for this region, the third quartile ended up being the one with the smallest number of census tracts. Out of all 1,800 census tracts in region three, this application happens to be in the exact one that is the first in the fourth quartile.
  • The project is requesting a waiver to be considered a third quartile. However, there doesn’t a exist a rule to be waived. Nothing in the QAP specifies exactly how an uneven number of census tracts is to be divided by four.
  • According to legal, this situation is where you have an uneven distribution amongst the quartiles.
  • The board has directed staff to update the site demographics and characteristics report for the 2024 9% tax credit round to reflect the census tract of the subject application is a third tract.
  • The Director of Multifamily Finance stated that in the 2025 QAP – TDHCA could add a few sentences where it clarifies that when they divide quartiles that they will do so in the manner that is most beneficial to the most census tracts. Which would mean that whenever there is a circumstance that necessitates one of the quartiles having fewer, it would always be the fourth.
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Meeting adjourned at 11:27 AM

The next TDHCA board meeting is on March 7, 2024