The TDHCA convened its board meeting at 10:05am on June 13, 2024, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.
June 13 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
- The board book has a report on all the pandemic-related programs. TDHCA received 22 separate allocations – equaling $4.6 billion. 90% has been expended. It’s helped 6.1 million individuals.
- Community Affairs Division & Disaster Assistance – TDHCA approved $25,000 awards of CSBG discretionary funding to the Southeast Texas Regional Planning Commission and South Plains Community Action Association. The department is assisting low income families impacted by the recent storms and flooding.
AGENDA ITEM 19: Multifamily Bonds
Presentation, discussion, and possible action regarding the Issuance of Multifamily Housing Revenue Bonds (Gulfway Manor Apartments) Series 2024 Resolution No. 24-020, and a Determination Notice of Housing Tax Credits
- 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 21: Asset Management
Presentation, discussion, and possible action regarding a waiver and extension of the 10% Test submission deadline in 10 TAC §10.401(a) and 10 TAC §11.2(a) for 3300 Caroline Street (HTC #20114/21711/22802)
- A board member inquired about a notification system for overdue reports. TDHCA acknowledged that no such system currently exists but mentioned ongoing discussions about updating their software to address this issue. Meanwhile, the department is reviewing past awards to identify properties with missing reports.
AGENDA ITEM 26-37: Multifamily Finance
Report on Third Party Requests for Administrative Deficiency under 10 TAC §11.10
- RFADS were due this year on May 3rd.
- Nineteen RFADs were submitted by this date.
- The new tiebreaker that was added to this year’s QAP was the most common topic of these RFADs.
- During the review process for this year’s tiebreaker applications, several issues arose regarding the eligibility of amenities used in the tiebreaker calculations.
- For parks, there were concerns about whether school-associated recreational facilities should count, as they may not be accessible at all times. The staff issued administrative deficiencies but found that the applicants had complied with the rules, so no further action is recommended.
- For grocery stores, a dispute emerged over whether a Target store, which lacks fresh produce and meats, met the QAP’s definition of a grocery store. The staff recommended excluding it from tiebreaker consideration.
- The board is advised of these issues but is not making decisions on them today; future QAP updates are planned to clarify these matters.
Presentation, discussion, and possible action on a request for return and reallocation of tax credits under 10 TAC §11.6(5) related to Credit Returns Resulting from Force Majeure Events for The Upland
- Applicant stated challenges – increased interest rates, construction costs, and a decrease in credit pricing.
- Applicant has pursued Harris County ARPA funding and a tax exemption through the inclusion of a Harris County entity into the Project’s ownership.
- The applicant states that the administration of Harris County ARPA funds has been delayed significantly and the anticipated closing date of these funds will imperil the Development’s ability to meet its 10% test
- After discussion, the Board tables Item 23 to next month’s agenda.
Presentation, discussion, and possible action to issue a list of approved Applications for 2024 Housing Tax Credits (HTC) in accordance with Tex. Gov’t Code §2306.6724(e).
- The applications recommended for award will be presented to the board on July 25th.
- Initially 228 pre-app applications and then 105 full applications were submitted for this cycle.
- As of the date this report was prepared, three applications had been withdrawn or terminated.
The next TDHCA board meeting is on July 11, 2024