Opening Items
- The meeting was called to order at 10:03 a.m.
- Two resolutions were read into the record:
- April 2026 as Fair Housing Month
- May 2026 as Community Action Month
- Staff also noted the Governor issued a proclamation recognizing Fair Housing Month in Texas.
Consent Agenda
- The board approved the consent agenda, Items 1–30, except Item 10, which was moved to the action agenda.
- Mr. Thomas abstained from the consent agenda vote because his employer, FHN Financial, was listed in Item 11 as an approved broker-dealer under the department’s investment policy.
- Vote – Approved with no opposition. Mr. Thomas abstained.
Executive Director’s Report
- Mr. Wilkinson highlighted recent TDHCA participation in national & state conferences, including presentations on data-informed funding decisions, homelessness partnerships, and ESG administration challenges.
- He also previewed several interim legislative charges that may involve TDHCA testimony, including:
- housing affordability barriers,
- mental health and homelessness services,
- foster youth homelessness and recidivism, and
- other affordability issues under House and Senate committees.
- No questions from the board.
Item 10: Material Change to Multifamily Management System Contract
- Staff asked the board to approve a contract increase for TDHCA’s new Multifamily Management System, which is being built to manage multifamily applications and underwriting.
- The contract would increase from $3.53 million to $4.1 million because of project delays and expanded underwriting work.
- Industry speakers gave conditional support, saying the system needs to work better for applicants and consultants, especially on the front end.
- Staff said user feedback had already led to changes and that the system is still being refined.
- Chairman Vasquez said the discussion also highlighted the need to revisit outdated or duplicative requirements.
- Vote – Approved unanimously.
Item 32: Multifamily Housing Revenue Bonds and Determination Notice
- Staff presented a request for multifamily housing revenue bonds and a determination notice of housing tax credits for a 300-unit new construction development in Wilmer.
- The development would serve the general population, with all units restricted at 60% AMI.
- Staff noted that the Dallas County Housing Finance Corporation would serve as the general partner to support the property tax exemption, & that the City of Dallas had provided the required RONO.
- Staff also said there had been no public comments and no letters of support or opposition.
- Vote – Approved.
Item 34: Timbers Aid Apartments TCAP Loan Request
- Staff presented a request to extend & modify the existing TCAP loans as part of a new 4% rehab transaction.
- The change would push the loan maturity to February 16, 2052, change repayment to annual cash flow payments based on 75% of HUD-defined cash flow, & extend the TCAP LURA to match the longer loan term.
- Staff said the rehab costs are higher than expected, tax credit pricing has fallen, and the deal would not be feasible without leaving the TCAP loan in place.
- Board members asked whether anyone was cashing out. Staff and the developer said no — no new TDHCA money is going in, and the transaction is intended to keep the rehab together.
- Vote – Approved unanimously.
Item 35: Draft 2026 State of Texas Consolidated Plan One Year Action Plan
- Staff presented the draft 2026 One Year Action Plan, which covers how the state plans to use federal housing and community development funds.
- One notable change is new language allowing TDHCA to consider a set-aside for direct TBRA assistance for people leaving jail or incarceration.
- The draft will be posted for public comment from April 17 to May 17, 2026, and a public hearing on May 6.
- Vote – Approved unanimously.
Item 36: 2026 Department of Energy Weatherization Assistance Program State Plan & Awards
- Staff presented the final 2026 DOE Weatherization Assistance Program State Plan. TDHCA expects to receive about $10 million in DOE weatherization funds.
- The money will go to 21 subgrantees for home energy-efficiency work such as insulation, duct work, weather stripping, appliance replacement, and basic repairs needed to make homes weatherization-ready.
- Staff noted the draft plan had already gone out for comment, and no public comments were received.
- Approval allows staff to submit the plan to DOE and move forward with contracts for the 21 subgrantees.
- Vote – Approved unanimously.
Item 37: Reprogramming of 2025 CSBG Administrative and Discretionary Funds
- Staff asked the board to reallocate about $903,000 in unused 2025 CSBG administrative and discretionary funds. The recommendation was to distribute the money to entities that had already spent 100% of their original 2025 CSBG awards. Funds must be fully used before the September 30, 2026 expiration deadline.
- Board members asked about timing and whether the previous participation review process could slow things down. Staff said compliance had already started work and that the department wanted to move the money out as quickly as possible.
- Vote – Approved unanimously.
Item 38: Emergency Amendment to HFC Compliance Monitoring Rule
- Staff asked the board to approve an emergency amendment to the newly adopted HFC compliance monitoring rule. Mr. Wilkinson said the issue surfaced very late in the prior process, and emergency rulemaking was the fastest way to bring the rule back into line with statute before the audit deadline.
- The change was needed because one part of the March-adopted rule conflicted with HB 21. Specifically, the rule had used only the tenant-paid portion of rent in the rent reduction test for units with vouchers or rental assistance, while the statute refers more broadly to the rent charged for the restricted unit.
- Staff said the correction needed to happen immediately because HFC audit reports are due June 1, 2026, and the rule needed to be fixed before those reports are submitted.
- Staff also asked the board to approve the same amendment for publication for public comment through the normal rulemaking process, with comments open from April 24 to May 24.
- Vote – Approved unanimously.
- After the vote, Chairman Vasquez also recognized Rep. Gary Gates, who was present, and thanked him for his work on housing and affordability issues.
Item 39: Final Adoption of PRWORA Rule for HOME, HOME-ARP and NHTF Developments
- Staff presented the final rule implementing legal status verification requirements for HOME, HOME-ARP rental and National Housing Trust Fund developments in TDHCA’s multifamily portfolio. The rule requires all lease signers to be verified as having legal status as a U.S. citizen, U.S. national, or qualified alien.
- Staff said the rule will apply to existing and future properties for the full affordability period. Verification will occur at initial lease-up after the rule takes effect.
- Staff summarized major public comments, including concerns about housing instability, administrative burden, cost, SAVE system errors, and the fact that verification will apply property-wide even when only some units are HOME or NHTF units. Staff said federal requirements do not allow TDHCA to limit verification only to assisted units.
- Staff said two major changes were made since draft adoption:
- the rule will now take effect on August 1, 2026, to allow more time for training and SAVE system setup
- the “harboring” language was revised to instead tie the requirement to whether someone would need to be listed on the lease under the property’s existing lease terms.
- Staff also said additional rule changes are expected at the May board meeting to address issues such as delayed SAVE verification, waiting list questions, and dispute processes.
- Vote – Approved unanimously.
Item 40: Amendments to Compliance Monitoring Rules
- The biggest changes were tied to HUD’s new HOME final rule, which takes effect April 30, 2026.
- The updates affect things like tenant protections, utility allowances, rent increases, and reporting requirements for certain HOME-related developments with contracts executed on or after that date.
- Staff said two notable changes were made based on public comment:
- non-operable elevators must be reported within 72 hours instead of 24 hours; and
- the rule was clarified on when a property must accept timely rent payments made in full.
- Vote – Approved unanimously.
Item 41: Sea Gulf Villas Undesirable Site Feature Determination
- The project is a 2026 9% application to redevelop a vacant historic building in downtown Corpus Christi into 61 affordable units.
- Staff said the site is about 1.85 miles from Refinery Row, but recommended approval based on the site’s downtown location, city support, and similar past approvals.
- The applicant also spoke in support, describing it as an important adaptive reuse project for downtown Corpus Christi.
- Staff clarified that the vote applied only to this refinery-related issue, not to the application as a whole.
Item 42: Appeal of Breezy Meadows Application Termination
- Staff asked the board to uphold the termination of the Breezy Meadows 2026 9% application.
- Staff said the applicant was given system login information on February 19, but because of a personnel change, a new password was not requested until the afternoon of the application deadline.
- A new password was issued at 4:42 p.m., shortly before the 5:00 p.m. deadline.
- Staff said the application submitted by 5:00 p.m. was substantially incomplete, and the complete materials were not uploaded until around 8:00 p.m.
- The applicant appealed, arguing that the application itself had been completed on time and that the issue was an incomplete transmission, not an incomplete application.
- Board members said they understood the situation but were concerned that allowing the late submission would be unfair to other applicants and could create a bad precedent.
- Vote: The board denied the appeal. The motion passed 5–1, with Ms. Farias voting against the motion.
