The TDHCA convened its board meeting at 10am, March 10, 2022 at the John H. Regan Building, JHR 140 1400 Congress Ave Austin, Texas 78701
March 10th Meeting Summary
CALL TO ORDER ROLL CALL Leo Vasquez, Chair CERTIFICATION OF QUORUM
Called to order 10:04am.
CONSENT AGENDA REPORT ITEMS: Motion by Brayden, second Mr. Marchant – Motion carries
ITEM 3: APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS:
EXECUTIVE REPORT
BOBBY WILKINSON; EXECUTIVE DIRECTOR, TDHCA
- Executive Director’s Report
- Homeowner assistance fund launched on March 2nd – things going smoothly – more marketing will be done. There’s also a public facing dashboard. Benefit of up to $65,000 for anyone behind on their mortgage or property taxes. Average payout has been around $7,000. TDHCA hopes to serve 70,000 households.
- Texas rent relief: 1.97 billion has been distributed.
- Texas Supreme Court order that addresses the Texan Eviction Diversion program has been extended to May 1st. But there’s no funding piece to go with that. TDHCA might get reallocation funds from treasury.
- Multifamily 9% applications due March 1st
- Received 127 applications for 2022 9%, addition to 36 supplemental applications for ’19 & ’20 years
- $174.6 million of credits requested but only $76 million available
- 2022 QAP development plan more comprehensive from previous years
- Monica G. will leave TDHCA in a month. – job posting for Bond Finance Director
ITEM 4: AUDIT
AJAY THOMAS; CHAIR OF THE AUDIT AND FINANCE COMMITTEE
- a) Report on the meeting of the internal Audit and Finance Committee
- b) Review and possible acceptance of the State Auditor’s Office audit of the TDHCA Financial Statements
- SAO Report on the “The Audit of the Department of Housing and Community Affairs Fiscal Year 2021 Financial Statements” Report # 22-013 available at: https://sao.texas.gov/Reports/Main/22-013.pdf
* Board approves acceptance of the SAO report/Audit
ITEM 5: RULES
ABIGAIL VERSYP; DIRECTOR OF SINGLE FAMILY & HOMLESS PROGRAMS
- Presentation, discussion, and possible action on the proposed repeal and proposed new 10 TAC §7.1, §7.2, §7.3, §7.7, and §7.12; 10 TAC Chapter 7, Subchapter C, Emergency Solutions Grants; and 10 TAC Chapter 7, Subchapter D, Ending Homelessness Fund, and directing their publication for public comment in the Texas Register
* Board approves staff recommendation to repeal the old ESG and EHF rules and public the new draft rules for public comment
ITEM 6: SINGLE FAMILY AND HOMELESS PROGRAMS
ABIGAIL VERSYP; DIRECTOR OF SINGLE FAMILY & HOMELESS PROGRAMS
- Report on Emergency Solutions Grants Funding Under the CARES Act
- To date the program has successfully provided $52,150,978 in aid to Texans through street outreach, emergency shelter, rapid re-housing and homelessness prevention, Homeless Management Information System and administration.
- The program has been expended an average of $12 million each quarter
- The program achieved HUD’s 20% Expenditure Benchmark
- The CDC Eviction Moratorium restricted eligibility for Homelessness Prevention under the ESG Program until August of 2021, creating an obstacle for households facing eviction in Texas. In response, TDHCA ESG CARES staff quickly developed and implemented guidance so these households could still receive assistance.
*No further action
ITEM 7: HOUSING STABILITY SERVICES
CATE TRACZ; DIRECTOR OF HOUSING STABILITY SERVICES
a) Presentation, discussion and possible action granting authority for Emergency Rental Assistance 2 Housing Stability Service Funds to be awarded to the Texas Access to Justice Foundation for the provision of housing stability services
*Board approves staff recommendation to make the ERA 2-HSS award to Texas Access to Justice Foundation
b) Presentation, discussion, and possible action on timely filed eligibility or scoring appeals under the Notice of Funding Availability for Emergency Rental Assistance 2 Housing Stability Services \
c) Presentation, discussion, and possible action on Emergency Rental Assistance 2
- Department released a NOFA for $84,000,000 in ERA2 HSS funds to the public on November 12, 2021, with an application deadline of January 7, 2022, And in response to that NOFA, the Department received 81 applications requesting a total of $196,971,475;
- 44 awards for a total $84 million in assistance to help Texans in need obtain or retain stable housing
*Board approves staff recommendation to make the ERA 2-HSS awards as expressed in the action item
ITEM 8: BOND FINANCE
TERESA MORALES; DIRECTOR OF MULTIFAMILY BONDS
a) Presentation, discussion, and possible action regarding the Issuance of Multifamily Housing Revenue Bonds (Socorro Village) Series 2022 Resolution No. 22-017, and a Determination Notice of Housing Tax Credits
*Board approves staff recommendation to issue the determination notice and housing bonds for Socorro Village
b) Quarterly report relating to staff-issued Determination Notices for 2021 Noncompetitive 4% Housing Tax Credit applications, summary of year-end activity and 2022 Program Update
- Over the last quarter (December through February), staff has administratively issued 10 Determination Notices. This represents 2,354 total units and $19,388,222 in annual 4% Housing Tax Credits.
- Since April 2021, staff has administratively issued 36 Determination Notices, representing 8,238 total units and $71,337,347 in annual 4% Housing Tax Credits.
- The 4% HTC program will produce 16,493 total units in 2021, which results in approximately $141 million in annual 4% Housing Tax Credits, assuming all of the approved and active applications close under their current bond reservation,
- The 2022 Private Activity Bond (PAB) Program has an annual ceiling amount of approximately $3.2 billion and as of February 25, 2022, eligible requests total approximately $6.5 billion, with much of the requests coming from multifamily issuers that participated in the 2022 PAB Lottery.
- It’s worth noting that the TDHCA set-aside is only $170 million and the waiting list (including the pre-applications) total $740,560,000, over four times over-subscribed.
*No further action
ITEM 9: TEXAS HOMEOWNERSHIP
LISA JOHNSON; BUSINESS DEVELOPMENT OFFICER
Texas Homeownership Activity Report
*No further action
ITEM 10: HOME-AMERICAN RESCUE PLAN
NAOMI CANTU; DIRECTOR OF HOME-ARP
Presentation, discussion and possible action for approval to submit the HOME American Rescue Plan Allocation Plan as modified based on public comment to the U.S. Department of Housing and Urban Development
- TDHCA was allocated $132,969,147 of funds from the U.S. Department of Housing and Urban Development (HUD) under Section 3205 of the American Rescue Plan Act, which HUD has called the HOME-ARP Program.
- Direct Awards of HOME-ARP for National Housing Trust Fund (NHTF) Developments will be allowed.
- The maximum award amount per application for rental housing was increased from $10 million to $15 million. Although, a lesser maximum award amount may be included in a NOFA.
*Board approves staff recommendation to submit the revised HOME-ARP Plan to HUD
ITEM 11: COMMUNITY AFFAIRS
MICHAEL DE YOUNG; DIRECTOR OF COMMUNITY AFFAIRS
Presentation, discussion, and possible action on the reprogramming of Program Year 2021 Community Services Block Grant Administrative and Discretionary funds
- TDHCA has determined that there remains $487,988 in unexpended Program Year (PY) 2021 CSBG-D funds and $464,695 in Department administrative funds
- The Department wishes to expend the funds prior to the expenditure deadline of September 30, 2022, and therefore the funds warrant prompt reprogramming, and staff is recommending that the funds be used for direct client assistance
*Board approves staff recommendation for the reprogramming of CSBG Admin and Discretionary funds
ITEM 12: MULTIFAMILY FINANCE
CODY CAMPBELL; DIRECTOR OF MULTIFAMILY PROGRAMS
a) Presentation, discussion, and possible action regarding an award from the Multifamily Direct Loan (MFDL) 2021-3 Notice of Funding Availability (NOFA), as amended
*Board approves staff recommendation to make a $3 million-dollar Multifamily Direct Loan Fund award to Connect South Apartments in Houston
b) Presentation, discussion, and possible action regarding a waiver of 10 TAC §13.8(b)(6)(A) for Balcones Terrace (#21513)
- Balcones Terrace has experienced cost increases which have resulted in the equity decreasing below ten percent.
- The development has received $16,131,500 in funding from the City of Austin.
- Foundation Communities, Inc., is acting as both the developer and guarantor for this Application and is able to provide gap funding if needed.
*Board approves staff recommendation to adopt the Multifamily Direct Loan Fund rule waiver for Balcones Terrace
c) Presentation, discussion, and possible action regarding a waiver of 10 TAC §11.1002 of the 2022 Qualified Allocation Plan relating to the Program Calendar for Supplemental Housing Tax Credits for Canal Lofts (#20011) in Houston
*Board approves staff recommendation to deny the waiver request from Canal Lofts in Houston
d) Presentation, discussion, and possible action regarding approval of Supplemental Housing Tax Credit requests for the 2022 Competitive Housing Tax Credit Application Round
- The 2022 Qualified Allocation Plan (QAP) allows up to $5,000,000 to be allocated as supplemental funding for 2019 and 2020 9% Housing Tax Credit (HTC) awards which have experienced cost increases related to the COVID-19 pandemic
- TDHCA timely received 36 requests for supplemental allocations, 23 of which have since been conditionally approved by the Board.
- There are currently 13 remaining requests eligible for consideration, which are collectively requesting credits totaling approximately $2,364,230.
*Board approves staff recommendation to make 13 supplemental tax credit awards pending underwriting
ADJOURN @ 12:12 pm
Next meeting April 14TH