TDHCA recently sent out an email concerning the availability of Federal Home Loan Bank’s (FLHB) Affordable Housing Program (AHP). This financing can be combined with federal funding such as Low-Income Housing Tax Credits (HTC), or state and local housing programs. Funds can help offset gap financing or shore up additional financial support. AHP funds must be used to benefit households with incomes at or below 80% of the Area Median Income (AMI).
The Department has since been asked to consider whether this funding may be used as gap financing on 2024 9% Housing Tax Credit Applications. The FHLB AHP application acceptance period begins on April 2, 2024. 10 TAC Section 11.204(6)(B) establishes requirements for gap financing that is to be used along with a 9% HTC Application must have been applied for no later than the full 9% Application Delivery Date, which is March 1, 2024.
The AHP requires that an FHLB member institution sponsor an application for that source of funding. In lieu of having submitted the final AHP application on or after April 2, 2024, the Department will consider the application made to the FHLB member institution that is sponsoring the AHP application as satisfying the requirement to have made an application as an available funding source established at 10 TAC Section 11.204(6)(B), so long as that application is made on or before the deadline of March 1, 2024. All requirements of the rule related to gap financing must be met, and all necessary documentation related to it must be submitted with the 9% Application, including the required letter from the funding entity confirming receipt of an application or a term sheet from the lending agency that clearly describes the amount and terms of the financing. Please see the 2024 Qualified Allocation Plan for further information, as this e-mail does not include all requirements related to gap financing: https://www.tdhca.texas.gov/sites/default/files/multifamily/docs/24-QAP-10TAC-Ch11.pdf.
This email does not constitute a waiver of any rule or regulation.
With questions concerning the contents of this email or the 9% Housing Tax Credit program, please contact Josh Goldberger at [email protected].
With questions concerning the FHLB AHP, please contact an AHP analysts at 800-362-2944 or send questions or emails to [email protected]. Find more information at https://www.fhlb.com/community-programs/affordable-housing-program.