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The TDHCA convened its board meeting at 10:00 am on March 9, 2023, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.

March 9 Meeting Summary

TAAHP Staff attended the board meeting and summarized its main takeaways. TDHCA has uploaded the video recording if you would like to watch full meeting.

Board Member Brandon Batch submitted his resignation to the Governor’s office due to personal obligations. TAAHP would like to thank him for his service to the housing community and wish him well.

EXECUTIVE DIRECTOR’S REPORT

Bobby Wilkinson, Executive Director• Texas Rent Relief Portal has opened on March 14th and will close on March 28th. TDHCA has about $96 million in remaining funds. This includes a recent $40 million reallocation they received from other state and local programs.

  • The Texas Supreme Court Emergency Order establishing the Texas Eviction Diversion program has been extended through May 1, 2023.
  • Homeowner assistance fund (HAF) is active. The HAF program is federally funded that can help Texan residents with overdue mortgage payments, property tax, homeowners’ insurance, HOA fees and now recently utilities assistance. Half has been funded or approved. TDHCA has approved funding for 32,000 households. They have disbursed $353 million, with an additional $1.2 million in progress. Average assistance amount is over $10,979 per applicant. It takes about 34 days from time of application submittal to the time a determination is made on the application.
  • TDHCA Executive Director, Bobby Wilkinson testified before the House Committee on Urban Affairs concerning the department.
  • March 1st was the deadline for the 2023 9% Housing Tax Credit cycle.
    • The department received 92 applications – this is a 30% reduction from applications submitted last year. 

Agenda Item 15

Quarterly report relating to staff-issued Determination Notices for 2022 Non-competitive 4% Housing Tax Credit applications and a 2023 Program Update

Over the last quarter (December through February), staff has administratively issued 16 Determination Notices. This represents 3,776 total units and $37,375,767 in annual 4% Housing Tax Credits.

2022 Application Log Summary
  • The 2022 Private Activity Bond Program has an annual ceiling amount of approximately $3.2 billion.
  • TDHCA awarded $122 million in annual 4% credits and produced 12,602 affordable units across 60 applications.
    • 52 deals have closed to date. TDHCA has issued determination notices on six applications that are pending closing. And they have two applications that are currently under review.
    • 24 deals out of the 60 were new construction. These deals produced about 5,400 new affordable units
    • 36 applications were acquisition rehab. These deals produced about 7,000 units.
    • Of the 7,000 acquisition-rehab units, only 870 units were new affordable units that did not have existing restrictions in the form of Section 8 or under contract.
    • 6,200 acquisition-rehab units were already rent restricted, and the majority of those restrictions were in the form of existing LURAs.
  • Withdrawn applications in 2022 – There were 30 applications that were withdrawn compared to about 17 applications that were withdrawn in 2021. Interest rates and constructions costs are the main culprit.
2023 Application Log Summary
  • The 2023 Private Activity Bond (PAB) program has an annual ceiling amount of approximately $3.6 billion, and as of February 24, 2023, eligible requests total approximately $4.9 billion, with much of the requests coming from multifamily issuers that participated in the 2022 PAB Lottery
  • Staff is currently reviewing 41 applications for the 2023 program year for a total of approximately 8,050 units.

Important Remarks
Board Member Kenny Marchant asked Ms. Morales how the 4% HTC program is used as a tool to target rural vs urban projects. Mr. Morales, and TAAHP member, Bobby Bowling explained how 4% deals are hard to be financially feasible in rural areas. The 4% HTC program is more geared towards areas that can make the deal pencil, such as urban Texas cities.

Agenda Item 18

Adoption of the 2023 State of Texas Low Income Housing Plan and Annual Report (SLIHP)

The SLIHP document offers a comprehensive reference on statewide housing needs, housing resources, and strategies for funding allocations. It reviews TDHCA’s housing programs, current and future policies, resource allocation plans to meet state housing needs, and reports on performance during the preceding state fiscal year (September 1, 2021, through August 31, 2022).

Click here to access the full text of the 2023 SLIHP. The public may also receive a copy of the 2023 SLIHP by contacting the Department’s Housing Resource Center at (512) 475-3976.

Important Remarks
Board Member Holland Harper asked Elizabeth Yevich, the Director of TDHCA’s Housing Resource Center, if the SLIHP document includes performance indicators that measure the department’s 2023 performance based on their 2022 goals. He asked if there is an easy way for the department to see if they are on target to meet their annual goals. It’s important to track these goals because it could give us a deeper look on what is failing programmatically.

The board has directed the department to provide a quarterly report to the Board that demonstrates TDHCA’s progress on meeting their annual goals.

Agenda Item 20

Presentation, discussion, and possible action on amendments to §10.606 Construction Inspections; §10.613 Lease Requirements; §10.622 Special Rules Regarding Rents and Rent Limits Violations; §10.626 Liability; and §10.627 Temporary Suspension of Sections of this Subchapter and directing their publication for public comment in the Texas Register.

The Compliance Monitoring Section held a virtual roundtable in December to discuss potential amendments to the Compliance Monitoring Rule, 10 TAC Chapter 10 Subchapter F, §10.622 Special Rules Regarding Rents and Rent Limit Violations.

  • Staff had originally proposed 120 days for the notification requirement.
  • To balance the needs of low-income residents and their housing partners, TDHCA staff shortened the notification requirement to 75 days.
  • To summarize the new rule: If an Owner is increasing a household’s rent $75 or more per month, the Owner is required to provide the household a 75-day written notice of such increase.

Other proposed amendments include:

  1. Correct references to other rules that have been updated.
  2. Include current and new programs requirements in the following subsections; §10.613 Lease Requirements, §10.626 Liability and §10.627 Temporary Suspension of Sections of this Subchapter.
  3. Deletes outdated rule reference to Average Income.

 

Agenda Item 25

Presentation, discussion and possible action regarding a waiver of 10 TAC §11.101(b)(1)(A)(vii) of the Qualified Allocation Plan (QAP) relating to the percentage of efficiency and/or one bedroom units for Seabrook Square.

  • This agenda item is similar to the waiver requests approved at the February board meeting.
  • This applicant requested a waiver in advance of application submission. The timeline the applicant identified indicates the design of the project was in the planning process well before the introduction of the ineligible unit mix to the 2023 QAP and that up until that point, the applicant was under the belief that they had a compliant development
  • The board approved this waiver request.
  • Board members did ask if they would keep receiving more of these waiver requests. TDHCA informed him that the board should not expect many more, especially in the new tax credit cycle.

Meeting adjourned at 11:44

The next TDHCA board meeting is on April 13, 2023.