The TDHCA convened its board meeting at 10am, May 12, 2022 at the John H. Regan Building, JHR 140 1400 Congress Ave Austin, Texas 78701
May 12th Meeting Summary
TAAHP Staff attended the board meeting and have summarized its main takeaways. TDHCA has uploaded the video recording if you would like to watch the meeting.
ANNOUNCEMENTS
- Board Member Paul Braden has submitted his resignation from the Governing Board of TDHCA
- Board went into executive session – During executive session the Board did not adopt any policy, position, resolution, rule, regulation or take any formal action or vote on any item.
EXECUTIVE DIRECTOR’S REPORT
- Homeowner assistance fund (HAF) is active – disbursed $24.7 million, serving 3,500 households. $560,000 in process, $11.3 million reserved for loan modifications. $40,000 cap to help with mortgage, $25,000 max for property tax, HOA, insurance: – total $65,000 max benefit per household. Most applications from Hidalgo, Bexar, Harris, Dallas and Tarrant counties
- Texas Rent Relief –They have distributed $2 billion since the start of the program. 700,000 Texans prevented evictions for over 21,000 households. In March, received another $47.8 million in ERA Funds, that were reallocated from different entities. New funding will go to applicants that applied before.
- Texas Supreme Court emergency order establishing eviction dispersion program extended through July 1, 2022.
- HUD released new income limits several weeks ago for multifamily properties – TDHCA already updated online.
- QAP roundtables and working groups are still happening – 1 roundtable and working group left
- Several vacancies in Compliance department
ASSET MANAGEMENT
ROSALIO BANUELOS; DIRECTOR OF ASSET MANAGEMENT
- Nuestra Senora Apartments – El Paso: Owner requesting approval for changes to design – increase development site, eliminate podium parking, and reduce building height from five to four stories.
- Majority of discussion focused on the elimination of 63 of the 130 parking spaces proposed at application. Testimony was provided that the City of El Paso granted a variance and conducted a parking analysis for the site in support of the proposed parking reduction.
- Another project in El Paso segregated 120 parking spaces in a nearby garage and only 56 spaces are being used by residents. Evidence that the parking reduction can occur.
- City of El Paso granting 100 percent parking reductions, and 50 percent parking reductions in downtown core because they are trying to facilitate both pedestrian traffic, bus traffic, etc
- Approved the material amendment – motion passes
MULTIFAMILY FINANCE
TERESA MORALES; DIRECTOR OF MULTIFAMILY BONDS
NEIGHBORHOOD RISK FACTORS ISSUE: Presentation, discussion, and 4 possible action regarding eligibility under 10 TAC Section 5 11.101(a)(3)(B)(ii) related to undesirable neighborhood 6 characteristics for Sunset Gardens, project 22445. +
- QAP requirements about neighborhood risk factors: 1) the poverty rate of the census tract, 2) the performance of the schools in the attendance zone of the development, 3) blight in the neighborhood, and 4) the Part 1 violent crime rate.
- The information provided to mitigate the Part 1 violent crime rate was not sufficient based on staff’s review
- The threshold for the Part 1 violent crime rate is 18 per 1,000 persons. Neighborhood Scout reflects a crime rate for this neighborhood of 41 per 1,000 persons. Most recent crime rate for 2021 was 30. Governing statute 2306.002 identifies the Department’s policies as providing a decent, safe, and affordable living environment.
- Public testimony: The District Attorney’s Office will support local law enforcement and Rainbow Housing Assistance Corporation’s efforts to mitigate crime in and around the community, while working with community stakeholders as a part of our ongoing commitment to make Houston and Harris County safer.
- This existing apartment community in the Sunnyside neighborhood of Houston is an area that is rapidly transforming and receiving hundreds of millions of dollars of public and private investment. City selected Sunnyside as a priority area in its Complete Communities Program – 1 of 10 neighborhoods selected for Houston’s tax increment reinvestment zones.
- Project has tremendous local support – partnership with Houston policy department, significant security measures in place
- BATCH: “if we’re seeing a decrease in crime and if the goal is to improve the lives of the people that are living within this community, then you know, I can’t see why we wouldn’t want to be supportive of something that would increase police presence in the area, increase accountability amongst the residents to protect their community.”
- Farias does not think this property meets the governing statute: safe, decent and affordable
- Farias voted opposed. The motion carries with one nay vote.
MULTIFAMILY PROGRAMS
CODY CAMPBELL; DIRECTOR OF MULTIFAMILY PROGRAMS
- Received 42 applications – the NOFA initially made available about $41 million, and the current log reflects about $100 million in requests.
- Department anticipates large award of National Housing Trust Fund – want to be able to program the non-administrative funds from that award into the NOFA
- Issue: Using historic tax credits with MFDL funds
- Historic tax credits cannot be layered with the Departments MFDL funds – direct loans may not be used for adaptive reuse developments – because historic tax credits not easily compatible with very strict timing deadlines of MFDL funds
- The rule prohibiting the combination of these funds is a state rules and is not a federal requirement.
- To approve the waiver request to layer those funds – then an amendment to the Department’s one-year action plan with HUD will be necessary.
- All force majeure requests were approved.
The next TDHCA board meeting is on June 16, 2022.