TDHCA Drafts Proposed Qualified Contract Policy for Housing Tax Credit Program
The Department has drafted a proposed Qualified Contract Policy to assist owners of Housing Tax Credit properties receiving a credit allocation after January 1, 1990, who desire to exit the program after the initial 15 year affordability period. Properties receiving credits after this date were required to extend the affordability requirements from 15 years to 30 years.
Property owners, at the end of the fourteenth year of the compliance period, can request TDHCA to locate a buyer for the property at the qualified contract price. If the Department cannot locate a buyer at the qualified contract price within one year, the extended use commitment will expire.
Once TDHCA's Governing Board approves the proposed policy, the Department will publish the draft in the Texas Register and release the document to the public for comment. The final rule will go to the Board no later than August 2005.