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The TDHCA convened its board meeting at 9am, October 14th, 2021 at the John H. Regan Building, JHR 140 1400 Congress Ave Austin, Texas 78701

October 14 Meeting Summary

CALL TO ORDER ROLL CALL Leo Vasquez, Chair CERTIFICATION OF QUORUM

Called to order 9:10am. Batch; Thomason absent.

CONSENT AGENDA

ITEM 1: APPROVAL OF THE FOLLOWING ITEMS PRESENTED IN THE BOARD MATERIALS:
EXECUTIVE

a) Presentation, discussion, and possible action on Board meeting minutes summary for September 2, 2021 Beau Eccles Board Secretary

ASSET MANAGEMENT

b) Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Land Use Restriction Agreement; Rosalio Banuelos Director of Asset Management

  • 01144 Autumn Oaks of Corinth Corinth
  • 02008 Prairie Commons Dallas
  • 03066 Anson Park Abilene
  • 03190 Westview Ranch Pearsall
  • 04241 Anson Park II Abilene
  • 98174 Lodge at Merrilltown Austin
  • 99005 Homes of Parker Commons Fort Worth
  • 99059 The Retreat at Texas City Texas City

c) Presentation, discussion, and possible action regarding a Material Amendment to the Land Use Restriction Agreement

  • 534339 Southwest Village Apartments Marble Falls

d) Presentation, discussion, and possible action regarding a Material Amendment to the Housing Tax Credit Application 20192 Arbor Park Austin

  • 20205 Ella Grand Houston
  • 20451 Crossroad Commons Austin

e) Presentation, discussion, and possible action regarding a waiver of §10.101(b)(4)(M) of the 2016 Uniform Multifamily Rules 16373 Avondale Farms Seniors Haslet

 

BOND FINANCE

f) Presentation, discussion, and possible action on Resolution No. 22-003 authorizing request to the Texas Bond Review Board for annual waiver of Single Family Mortgage Revenue Bond set-aside requirements, authorizing the execution of documents and instruments relating thereto, making certain findings and determinations in connection therewith, and containing other provisions relating to the subject Monica Galuski Director of Bond Finance

g) Presentation, discussion, and possible action on Inducement Resolution No. 22-004 for Multifamily Housing Revenue Bonds Regarding Authorization for Filing Applications for Private Activity Bond Authority; Teresa Morales Director of Multifamily Bonds

  • 21628 The Preserve at Cottonwood Creek Wilmer
  • 21629 Union Acres Center
  • 21630 Palladium Glenn Heights Town Center Glenn Heights
  • 22600 Harvest Ridge at Brushy Creek Hutto
  • 22601 Torrington Arcadia Trails Balch Springs
  • 22603 Marine Park Fort Worth
  • 22604 Socorro Village Socorro

h) Presentation, discussion, and possible action on Inducement Resolution No. 22-005 for Multifamily Housing Revenue Bonds Regarding Authorization for Filing Applications for Private Activity Bond Authority

  • 21608 Fiji Lofts Dallas
  • 21609 Throckmorton Villas McKinney

i) Presentation, discussion, and possible action on Inducement Resolution No. 22-006 for Multifamily Housing Revenue Bonds Regarding Authorization for Filing an Application for Private Activity Bond Authority for Delafield Villas (#21610)

 

SINGLE FAMILY & HOMELESS PROGRAMS

j) Presentation, discussion, and possible action authorizing the submission of requests to remove property from the Neighborhood Stabilization Program land bank; Abigail Versyp Director of Single Family and Homeless Programs

k) Presentation, discussion, and possible action regarding a waiver of 10 TAC §23.31(a)(2)(c) relating to submission of a Reservation to assist owners of unoccupied housing under the Homeowner Reconstruction Assistance Program

 

RULES

l) Presentation, discussion, and possible action on an order proposing the amendment of 10 TAC Chapter 1, Subchapter A, General Policies and Procedures, §1.3, Sick Leave Pool; and an order directing its publication for public comment in the Texas Register; Brooke Boston Deputy Director of Programs

m) Presentation, discussion, and possible action on an order proposing the repeal of 10 TAC Chapter 5, Section 8 Housing Choice Voucher Program, §5.801, Project Access Initiative; proposing new 10 TAC Chapter 5, Section 8 Housing Choice Voucher Program, §5.801, Project Access Initiative; and directing their publication for public comment in the Texas Register

 

MULTIFAMILY FINANCE

n) Presentation, discussion, and possible action regarding the issuance of a Determination Notice for 4% Housing Tax Credits for K Avenue Lofts (#21454) in Plano Teresa Morales Director of Multifamily Bonds

 

COMMUNITY AFFAIRS

o) Presentation, discussion, and possible action on the selection of Community Council of South Central Texas, Inc. to administer the Weatherization Assistance Program in Brewster, Crane, Culberson, Hudspeth, Jeff Davis, Pecos, Presidio, and Terrell counties Michael De Young Director of Community Affairs

 

FINANCIAL ADMINISTRATION

p) Presentation, discussion, and possible action to adopt a resolution regarding designating signature authority and superseding previous resolutions Joe Guevara Director of Financial Administration

CONSENT AGENDA REPORT ITEMS
ITEM 2: THE BOARD ACCEPTS THE FOLLOWING REPORTS:

a) Media Analysis and Outreach Report (August 2021) Michael Lyttle Director of External Affairs

b) Report on Activities Related to the Department’s Response to COVID-19 Pandemic Brooke Boston Deputy Director of Programs

c) Housing Finance Activity Report Cathy Gutierrez Director of Texas Homeownership d) Report on the closing of the Department’s Single Family Mortgage Revenue Bonds, Series 2021A and Single Family Mortgage Revenue Refunding Bonds, Series 2021B (Taxable) Michelle Straley Senior Financial Analyst

 

ACTION ITEMS

Executive Session: the Chair may call an Executive Session at this point in the agenda in accordance with the below-cited provisions Leo Vasquez Chair.

No executive session was called

 

ITEM 3: EXECUTIVE

Executive Director’s Report Bobby Wilkinson Executive Director, TDHCA

  • Bobby Wilkinson – Executive Director Report – Currently at the end of the 3rd Special Session.  Some concepts on adding funding discussed.
  • TX rent Relief – over $1B dispersed; first state to distribute $1b in rent relief; another billion to be distributed. 
  • Homeowner Assistance Fund – American Rescue Plan – plan submitted to Treasury; but no state plan approved yet.
  • MF Finance Changes –
      • Cody Campbell new MF manager.
      • Wendy Quackenbush – Director of Compliance Monitoring.
  • Income eligibility training provided directly by TDHCA staff.
  • MF Bond Program will be participating in the 2022 bond lottery; Requesting $623m from 22 applications; only 7 expected to receive an allocation.
  • HOME American Rescue Plan – $132.9 million will be used to combat homelessness.
  • Adding a 3 year forgivable 2nd lien for homeowner assistance program.

 

ITEM 4: BOND FINANCE

Presentation, discussion, and possible action regarding the Issuance of Multifamily Housing Revenue Bonds (The Park at Kirkstall) Series 2021 Resolution No. 22-007, and a Determination Notice of Housing Tax Credits; Teresa Morales Director of Multifamily Bonds

Where there are 2-story units, there must be an accessible entry; since this was a requirement in the QAP and LURA; Park at Kirkstall is not in compliance since they are built above a garage; Applicant has agreed to lease 2 BR units at 1BR rents for families needing accessible units.  Staff recommends waiver and believes it would not have been foreseeable.

4% tax credits.

Motion: Marchant; Second Thomas; approved

 

ITEM 5: SINGLE FAMILY AND HOMELESS PROGRAMS

a) Presentation, discussion, and possible action regarding a waiver of 10 TAC §23.32(a)(19) relating to submission of Reservations to assist owners of housing under the disaster relief set-aside; Abigail Versyp Director of Single Family and Homeless Programs

City of Port Arthur violation; City asked for an appeal but didn’t contest the rule; as an alternative is that they asked a for a waiver to the statue due to COVID-19; staff recommends approval of the waiver.

Motion: Thomas; Second: Marchant; approved.

b) Presentation, discussion, and possible action to authorize the issuance of the 2022 HOME Investment Partnerships Program Single Family General Set-Aside Notice of Funding Availability and publication of the NOFA in the Texas Register; Chad Landry Manager of HOME Program

All NOFA’s are awarded using reservation systems.

2022 HOME SF General NOFA $19.9M for Homeowner reconstruction; tenant Based rental assistance.

Motion: Marchant; Braden; approved

c) Presentation, discussion, and possible action to authorize the issuance of the 2022 HOME Investment Partnerships Program Single Family Persons with Disabilities Set Aside Notice of Funding Availability and publication of the NOFA in the Texas Register

To assist people with disabilities; funds are available statewide; $1.7 million home construction and tenant based rental assistance (grant).

Motion: Braden; Second Thomas; approved

d) Presentation, discussion, and possible action to authorize the issuance of the 2022 HOME Investment Partnerships Program Single Family Contract for Deed Set-Aside Notice of Funding Availability and publication of the NOFA in the Texas Register

2022 Contract for Deed NOFA; funds allocated for households who may be in a contract for deed; buyer occupies property but does not own until all payments are made;  this program buys these out and converts them into traditional mortgages. Terms for contracts for deeds many times have unreasonable interest rates and other terms. Average buyout is $50K – $150K. These are mainly seen within Colonias. Any unused funds are reprogrammed for other purposes.

Motion:  Braden; Second: Marchant; approved

 

ITEM 6: RULES

a) Presentation, discussion, and possible action on the proposed repeal of 10 TAC Chapter 13, Multifamily Direct Loan Rule, the proposed new 10 TAC Chapter 13, Multifamily Direct Loan Rule, and directing their publication for public comment in the Texas Register; Charlotte Flickinger Multifamily Direct Loan Manager

Repeals 10 TAC Chapter 13 and proposes a new 10 TAC Chapter 13 that are primarily non substantive technical corrections.

10 TAC Chapter 13 governs all aspects of Direct loan administration. First, adaptive reuse proposals eligible, but with limitations.  The rule does not allow for historic tax credit. Second, moves loan terms from the rules to the NOFA. Third, adds cross cutting requirements, like Davis Bacon, and adds clarifications. Fourth, shortened the timing for environmental reviews and distribution.

Motion: Thomas; Second: Braden; approved.

b) Presentation, discussion, and possible action on an order proposing the repeal of 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, and an order proposing new 10 TAC Chapter 10 Subchapter E, Post Award and Asset Management Requirements, and directing their publication for public comment in the Texas Register;

Rosalio Banuelos Director of Asset Management

Proposed rules will be posted and then brought before the board. Among changes, removes 401, 402 that have been moved to the QAP adds a section to deal with subordination agreements. 

Motion: Marchant; Second: Thomas; approved

 

ITEM 7: MULTIFAMILY FINANCE

a) Presentation, discussion, and possible action to amend the 2021-3 Multifamily Direct Loan Notice of Funding Availability; Charlotte Flickinger Multifamily Direct Loan Manager

2nd amendment to the NOFA; staff continue to receive new applications; due to continued activity seek to extend deadline. Amendment also corrects an administrative error. NOFA changes effective October 15.  Original NOFA related to 2019 and 2020 development difficulties with labor and materials costs. Most changes due to costs incurred. Others have documented increases.  Costs independently certified through cost cert process.

Motion: Braden; Second: Marchant; approved.

b) Presentation, discussion, and possible action regarding awards from the Multifamily Direct Loan (MFDL) 2021-3 Notice of Funding Availability (NOFA), as amended.

Six recommendations:

  1. Palladium Fain Street, Ft. Worth; approved in 2020; documented cost increase of $1.5M; request was $528,735;  staff recommendation $474,000 as qualified amount.
  2. Vernon – Pioneer Crossing; approved in 2020; documented increase of $1.6M; request was $1.050,000; recommendation $1,050,000.
  3. Commons at St. Anthony’s in Amarillo; documented increase of $3.7M in costs; staff recommendation: $2M
  4. Westwind at Dumas; 2020 application; documented building cost increases of $1,219,753; staff recommendation $1.1M.
  5. Arbor Park Apartments; approved in 2020; documented costs increases of  $2.8M; Requested $2.2M; Staff recommendation: $2,222,900.
  6. Ella Grand Apartments; approved in 2020; documented increase of $3.6m; Requested $2.18M; staff recommendation $2,180,000.

 Motion: Thomas; Second: Braden; approved.

c) Presentation, discussion and possible action on requests for return and reallocation of tax credits under 10 TAC §11.6(5) related to Credit Returns Resulting from Force Majeure Events for Applications Awarded Competitive (9%) Housing Tax Credits in Prior Application Rounds; Cody Campbell Director of Multifamily Programs

This action affects the following applications for Force Majeure consideration to extend the 10% Test deadline to July 1, 2022 and Placement in Service to December 31, 2023.

  • 19077 Telephone Road Elderly Apartments Houston
  • 20077 Lockwood South Apartments Houston
  • 20082 Connect South Apartments Houston
  • 20190 Nuestra Señora El Paso

Motion: Marchant; Second: Braden; approved.

PUBLIC COMMENT ON MATTERS OTHER THAN ITEMS FOR WHICH THERE WERE POSTED AGENDA ITEMS

EXECUTIVE SESSION

The Board may go into Executive Session Pursuant to Tex. Gov’t Code §551.074 for the purposes of discussing personnel matters including to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee;

ADJOURN : 10:20am