The TDHCA convened its board meeting at 10:02am on July 11, 2024, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.
July 11 Meeting Summary
TAAHP Staff attended the board meeting and summarized its main takeaways.
Consent Agenda Approved
AGENDA ITEM 15: Executive Director’s Report
Bobby Wilkinson Executive Director, TDHCA
- Wendy Quackenbush from the compliance division reports that their new interactive online training has been highly successful.
- The training includes regular sessions and “Office Hours” led by Cara Pollei, held on the second Friday of each month, where attendees can ask any compliance-related questions.
- With positive feedback and an average of 215 attendees per month (peaking at 364), the sessions have proven popular.
- The next session on July 19 will focus on post-year 15 housing tax credit properties.
- The development community is encouraged to sign up for these valuable opportunities, with sign-up information available through listservs.
- The HAF program has provided assistance to 58,512 unique households with average assistance per household totaling $12,617. A total of $739.3 million in assistance has been paid to date. At this time, all HAF funds have been committed. The program is in phase three making final payments to approved households.
- For Section 8, HUD recently completed a management assessment of our Section 8 program or what is called SEEMAP. SEEMAP measures the performance of public housing agencies that administer the housing choice voucher program in 14 key areas. TDHCA scored a 100 and is considered a high performer by HUD.
AGENDA ITEM 19: Multifamily Bonds
Presentation, discussion, and possible action regarding the issuance of a Determination Notice for 4% Housing Tax Credits for Willow Creek Manor in Houston (#24460)
- The discussion focused on concerns about the appraisal values and financing for a property renovation in Corpus Christi. During the discussion, Kenny Marchant questioned the relationship between the appraisal values and market realities for a property in Corpus Christi, specifically concerning its final cost versus the fair market value. Teresa Morales clarified that while HUD’s approval of the $355,000 per unit valuation is crucial, the appraisal process adheres strictly to QAP requirements. Morales added that the property in question is undergoing renovations to extend its affordability, despite concerns about high costs.
- Board members suggested more rigorous scrutiny of such transactions and consideration of revised funding priorities, including focusing on new construction or setting cost limits per unit, to ensure resources are used effectively.
- Mr. Marchant and Ms. Farias voted against approving the resolution, and the remaining board members did and resolution passes. Chairman Vasquez abstained.
AGENDA ITEM 7: Multifamily Bond
Presentation, discussion, and possible action regarding the issuance of a Determination Notice for 4% Housing Tax Credits for Willow Creek Manor in Houston (#24460)
- Such notices do not require board consideration, but a request from State Representative Sam Harless, who opposes the project, has prompted this review.
- Willow Creek Manor plans to construct 264 units in Northwest Houston for households at 60% of the area median income.
- The application has faced opposition from the state representative and the Klein Independent School District, citing concerns about community impact.
- Despite this, staff recommends issuing a determination notice for $3,434,480 in 4% housing tax credits, as the application meets the QAP requirements. Board approves the issuance of a determination notice for 4% HTCs.
AGENDA ITEM 12: Housing Resource Center
Presentation, discussion, and possible action to approve the 2024 State of Texas Analysis of Impediments to Fair Housing Choice.
- Elizabeth Yevich, director of the Housing Resource Center, presented item 12, the 2024 Analysis of Impediments to Fair Housing Choice (AI), which is required by HUD as part of the five-year consolidated plan.
- This AI updates the 2019 version and includes improvements like interactive data visualization using Tableau.
- The AI identifies new impediments, including economic shocks impacting protected classes, and incorporates feedback from extensive public consultation.
- Inclusive Communities Project criticized the AI for lacking actionable steps to address fair housing issues, arguing that it fails to meaningfully address segregation and disparities. She called for more robust engagement with stakeholders.
- The board acknowledged her concerns and emphasized ongoing openness to feedback.
AGENDA ITEM 24: Multifamily Finance
Presentation, discussion, and possible action on an appeal for 10112 Bissonnet Living
- The application for 10112 Bissonnet Living lacked a required statement in the city’s resolution acknowledging the concentration of housing tax credit units in the census tract.
- This omission caused the application to miss out on a 30% basis boost, rendering it financially infeasible.
- Appeal – The applicant submitted a new resolution with the required statement and appealed the decision.
- Staff Recommendation: Deny the appeal because waivers are not allowed after submission.
- Board members debated whether this situation is a material or clerical deficiency, with some considering the addition of the missing sentence as a correctable clerical issue rather than a substantive change.
- Vote – Motion Passes
- Aye – Farias, Harper, Thomas, & Vasquez
- Nay –Conroy, and Marchant
AGENDA ITEM 29: Multifamily Finance
Presentation, discussion, and possible action on an appeal for Braniff Lofts
- The issue centered around the appraisal’s valuation of the building
- The initial appraisal led to a significant reduction in eligible tax credits, rendering the project financially unfeasible.
- A revised appraisal submitted during the appeal was also found inadequate and not compliant with program rules.
- Despite the applicant’s arguments about the appraisal’s shortcomings and the building’s historic value, the board upheld the decision to deny the appeal, as the appraisal and underwriting process followed statutory requirements.
The next TDHCA board meeting is on July 25, 2024