TDHCA May 2025 Meeting Highlights

The TDHCA convened its board meeting at 10:05 am on May 8, 2025, at the Greer Bldg, 125 East 11th Street Austin, Texas 78701.

May 8 Meeting Summary

Consent Agenda report approved.

EXECUTIVE DIRECTOR’S REPORT

• Border Site Visits & Colonia Support
  • TDHCA’s Office of Colonia Initiatives staff are traveling along the Texas-Mexico border to visit Colonia Self-Help Centers.
  • The team will conduct site visits in El Paso and Cameron County, and meet with Nueces, Maverick, Val Verde, and Hidalgo Counties.
  • The visits will also introduce Sophia Castro, the newly appointed Contract for Deed Implementation Manager.

• Homeowner Assistance Fund (HAF) Program Completion
  • As of April 15, the HAF program is officially closed for payments.
    58,536 unique Texas households received assistance.
  • The average benefit per household was $12,658.
  • A total of $742 million was distributed—making Texas the top state in terms of households served.
  • Although the program is complete, the division will remain temporarily to support audits and closeout activities.

Legislative Update – 89th Texas Legislature

Provided by Michael Lyttle, Director of External Affairs

• Budget
  • Senate Bill 1 (General Appropriations Act) is in conference committee. TDHCA’s full budget request is included—only minor rider changes expected.
• Housing Legislation
  • HB 1585 (Bell) limits Housing Finance Corporations (HFCs) to operate only within their home jurisdictions.
  • SB 898 (Blanco) raises the per-development cap for 9% housing tax credits from $2M to $3M, offering TDHCA flexibility by region or urban/rural split.
  • SB 578 (West) mandates surveillance cameras for 9% tax credit developments starting in 2026, excluding rural areas.
  • SB 732 (Miles) requires elderly developments to have generators for emergency heating/cooling and elevator access, prompted by Hurricane Beryl outages.
  • SB 243 (Flores) expands TDHCA’s oversight of migrant farmworker housing, requiring proactive inspections and outreach statewide.
  • SB 2623 (Creighton) restricts homeless services within 1,500 feet of schools and adds TDHCA to a related state task force.

• Government Efficiency
  • SB 14 (King) has been signed into law, creating a Texas Regulatory Efficiency Office to cut red tape and improve rulemaking.
  • HB 12 (Bell) strengthens agency sunset reviews and mandates performance audits and public input (awaiting Senate action).
• Policy Discussion
  • Board Member Kenny Marchant suggested amending the QAP to penalize “traveling HFCs” if legislation doesn’t pass. Staff affirmed this is possible, especially where projects bypass local tax contributions or offer minimal affordability.

Agenda Item #24: Presentation, discussion, and possible action on an appeal of the termination of Trinity East Senior

• Trinity East Senior is a 2025.9% housing tax credit application, which proposes the new construction of 90 units in Houston’s Third Ward. The project is part of a HUD Choice Neighborhood Program provides grants to cities for the revitalization of areas and for the rehabilitation or replacement of aging public housing stock. This particular grant is for $50 million for the revitalization of the Third Ward, including the replacement of the aging Cuney Homes housing development.
• Site has crime rate of 35.68 per 1,000 (neighborhood risk factor), double the 18 per 1,000 limit
• Houston Housing Authority representatives discussed: Current Cuney Homes design allows hiding spots for criminal activity, New design would improve safety and visibility, Senior housing would be built first to relocate elderly residents before demolition begins.
• Board expressed concern about crime statistics being double the allowable limit
• Neil Ratcliffe (newly appointed COO of Houston Housing Authority) indicated: The mayor instructed HPD to put full resources behind safety efforts, The neighborhood is rapidly changing with 264% income increase in last 10 years vs 35% citywide, Project is part of $400M investment to improve the neighborhood, Cuney Homes residents have lived in substandard housing for 86 years
• $864,000 budgeted in the $50M grant specifically for public safety initiatives
• Board requested a detailed 3-5 year security plan before reconsidering the appeal
• The Board choose to table the item until a future time and to resolve the concerns via the administrative deficiency process.

Agenda Item #15: Report on Third Party Request for Administrative Deficiency under 10 TAC §11.10 of the 2025 Qualified Allocation Plan

• 18 RFADs received by April 15 deadline, covering various scoring and threshold issues
• Earlier RFAD deadline this year allows issues to be resolved sooner
• No points awarded/deducted at this stage; applicants will have appeal rights.

Agenda Item #20: Presentation, discussion, and possible action on the proposed amendments to 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, §10.406 Ownership Transfers, and directing their publication for public comment in the Texas Register
TDHCA will publish proposed changes to its ownership transfer rules for public comment. The key update removes the option for letters of support from mayors or county judges when an ownership transfer leads to a new 100% property tax exemption (e.g., through a PFC, HFC, or PHA). Instead, a formal resolution of support from the city or county will be required.

Why it matters: Ensures stronger local oversight and prevents property tax exemptions from being granted without formal municipal or county approval.

• Public comment period: May 23–June 23, 2025.
• Final adoption: Expected July 2025.
• The Board approved staff recommendation to adopt the proposed amendments to specific asset management rules.

Agenda Item #20: Presentation, discussion, and possible action on the proposed amendments to 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, §10.406 Ownership Transfers, and directing their publication for public comment in the Texas Register
TDHCA will publish proposed changes to its ownership transfer rules for public comment. The key update removes the option for letters of support from mayors or county judges when an ownership transfer leads to a new 100% property tax exemption (e.g., through a PFC, HFC, or PHA). Instead, a formal resolution of support from the city or county will be required.

Why it matters: Ensures stronger local oversight and prevents property tax exemptions from being granted without formal municipal or county approval.

• Public comment period: May 23–June 23, 2025.
• Final adoption: Expected July 2025.
• The Board approved staff recommendation to adopt the proposed amendments to specific asset management rules.

Adjourned at 12:28 pm.

Next TDHCA Meeting: Thursday, June 12, 2025