TDHCA May 2024 Meeting Highlights

May 17, 2024 | Newsletter, TDHCA News

The TDHCA convened its board meeting at 10:02am on May 9, 2024, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.

May 9 Meeting Summary

TAAHP Staff attended the board meeting and summarized its main takeaways.

Consent Agenda Approved

RESOLUTIONS

  • Resolution Recognizing April as Fair Housing Month
  • Resolution Recognizing May as Community Action Month

AGENDA ITEM 15: Executive Director’s Report

Bobby Wilkinson Executive Director, TDHCA

  • The Homeowner Assistance Fund (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.
    • The program is in the final phase, making final payments to approved households.
    • Provided assistance to 58,498 unique households, with average assistance per household totaling $12,617 dollars. A total of $739.1 million in assistance has been paid to date. At this time, all funds have been committed.
  • Multifamily Finance division – 19 Requests for Administrative Deficiencies (RFADs) were received this year. Last year, the department also received 19 RFADs.
  • The neighborhood stabilization program is winding down.
  • The Office of Colonial Initiatives hosted a roundtable this month to speak with stakeholders about the status of contract for deed.
    • Along the Texas, Mexico border, we are seeking input about the prevalence of contract for deed as well as common impediments and the use of our HOME dollars contract for deed program.
    • TDHCA received helpful feedback about possible rule changes that may assist with the administration of the program.
    • TDHCA also heard from these stakeholder stakeholders that they just don’t see many contracts for deed in the way they did in the past. They voluntarily convert their contract for deed into a warranty deed because they are not always interested in the contract for deed actually being paid off.
    • Staff is working through the feedback received and considering next steps, which may include bringing on a temporary project manager to work with nonprofits to create a model program, design for contract for deed, including creation of best practices and identification of funding sources that could provide assistance with title issues, which is not a home eligible expense.

 

AGENDA ITEM 19: Housing Resource Center

Presentation, discussion, and possible action on the draft 2025 Regional Allocation Formula Methodology, and directing its publication in the Texas Register for public comment.

  • The draft 2025 RAF Methodology explains the use of factors, in keeping with the statutory requirements, which include the need for housing assistance, the availability of housing resources, and other factors relevant to the equitable distribution of housing funds in urban and rural areas of the state.
  • For 2025, Clay County has been changed from rural to an urban due to an expansion of the City of Wichita Falls into Clay County. Even though a county may be a part of an MSA, all the places within that county may meet the definition of rural per Tex. Gov’t Code §2306.004(28-a).
  • The public comment period will be open from Monday, May 20, 2024, through Thursday, June 20, 2024, at 5:00 p.m. Austin local time, and a public hearing will be held on Tuesday, June 4, 2024, at 2:00 p.m.
  • The Board adopts staff recommendation on Item 19 to approve the draft 2025 Regional Allocation Formula Methodology and directing its publication in the Texas Register for public comment.

AGENDA ITEM 21: Single Family & Homeless Programs

Presentation, discussion, and possible action to authorize the issuance of the 2024 Emergency Solutions Grants Program Notice of Funding Availability and publication in the Texas Register

  • The Department wishes to release a Notice of Funding Availability (NOFA) for the ESG Program in accordance with 10 TAC §7.33 concerning Apportionment of ESG Funds and will retain 4.5% for administrative purposes.
  • Staff recommends publication of the ESG NOFA with estimated percentages of the total funds available within each Continuum of Care (COC) region and will later publish the actual amount of funds based on these percentages when the allocation amount is obtained from HUD. The Department will retain 4.5% of the allocation amount for administrative purposes. The remaining funds will be made available for awards to Subrecipients though the 2024 ESG NOFA.
  • The Board adopts staff recommendation.

AGENDA ITEM 22-25: Multifamily Finance

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 Manson Place Apartments

  • The Owner has also had to undertake a lengthy process of identifying and securing additional funding, including 66 Project Based Vouchers from the Houston Housing Authority, which have been contracted as of March 2024.
  • The applicant made responsive adjustments to financing of the project, and is prepared to close in June and proceed with construction, however the tax credit syndicator has made Force Majeure treatment a condition of closing, as construction is like to be completed in 2026.
  • Board adopts staff recommendation.

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 on a waiver of certain requirements of 10 TAC §13.11(c)(14) for multifamily Developments that have been awarded loans of Emergency Rental Assistance (ERA2) funds

  • Staff believes that granting the requested waiver does not present any risk to the completion of these Developments.
  • The Board adopts staff recommendation.

 

The next TDHCA board meeting is on June 13, 2024