TDHCA Governing Board Approves Tax Credit Program
The Governing Board of the Texas Department of Housing and Community
Affairs (TDHCA) at its January 26 meeting approved the 2001 Qualified
Allocation Plan and Rules (QAP) for the Housing Tax
Credit (HTC) Program. The QAP are the rules by which the Department
administer the program for the 2001 allocation round.
The Department held a series of hearings throughout Texas during
November and December of last year to receive public comment on
the document. Members of the public also provided extensive written
comment on the QAP. TDHCA took these comments into consideration
while developing the draft document, which was provided to the Governing
Board for review. Board members discussed, amended, and approved
the draft document before forwarding it to the Governor's Office,
where it awaits the approval of Governor Perry.
The following list highlights some of the amendments made to the
QAP by the board:
- Language was integrated into the Compliance section of the QAP
to prohibit property owners from using policies, practices or
procedures that exclude holders of Section 8 vouchers from housing
- Language was provided for Section 8 voucher holders so that
any minimum income requirements cannot exceed 2.5 times the portion
of the rent to be paid by the prospective tenant.
- The Board added language to open applications for public viewing
during the review process.
- Ex Parte rule requirements for developers were added to ensure
that applicants cannot communicate with members of the Governing
Board about a project while that project was being reviewed for
a tax credit allocation.
- An elderly set-aside category was added to the Program so that
at least 10 percent of the credit ceiling will be allocated to
qualified elderly projects.
- The provision for units for persons with disabilities, previously
a Selection Criteria, was made into a Threshold Criteria. The
QAP now requires that for up to 5 percent of all HTC units,
the owner will provide reasonable accommodations or modifications
at the owner's expense. Furthermore, all townhouse units must
now be designed with a bedroom and bathroom on the bottom floor.
- A non-exclusive preservation set-aside was added that ensures
at least 10 percent of the credit ceiling will be allocated
preservation projects. Preservation projects can fall into any
of the HTC Program's four set-aside categories: nonprofit,
rural, and general.
- Market studies are now required under the 2001 QAP for all
- Points will be awarded for projects located in cities with no
tax credit developments and where there are no tax credit developments
within a two-mile radius.
- Points for Qualified Census Tracts (QCT) have been changed
so projects must be in a QCT and contribute to a concerted community
revitalization effort to receive the points.
- Rural projects are now able to apply for developments greater
than 76 units as long as the need for additional units by market
study. If more than 76 units are permitted, the Rural project
cannot qualify in the Rural set-aside.
- The Department will now notify applicants when TDHCA receives
letters of opposition prior to the allocation of credits.
- Points were added to award projects that involve the joint partnership
of nonprofit and for-profit entities. In these cases, nonprofits
are not required to have 51 percent control of the project; however,
they must have this control to qualify for the nonprofit set-aside.
- Points were added for density (units per acre) for elderly
projects or Highrise Urban Infill Projects.
- Changes were made in the Supportive Service Criteria. Now, either
for-profit or nonprofit entities can provide supportive services
to tax credit properties; previously, only nonprofit entities