Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Multifamily Direct Loan Program

General Information

The Multifamily Direct Loan Program provides funding to nonprofit and for-profit entities for the new construction or rehabilitation of affordable multifamily rental developments. Funding is typically provided in the form of low interest rate, repayable construction-to-permanent loans. Multifamily developments funded through the Department’s Multifamily Direct Loan Program must comply with long-term rent and income restrictions and may be layered with additional funding sources (such as Housing Tax Credits). For more information, visit the FAQs page.


TDHCA has been notified by HUD that $4,778,364 has been allocated to the State of Texas through the National Housing Trust Fund (“NHTF”). The State is required to use these funds to serve Extremely Low Income (“ELI”) households at 30% of Area Median Income (“AMI”) or less. All housing assisted with NHTF funds must remain affordable for a minimum of 30 years, and at least 80% of the total allocation must be used to create affordable rental housing. In order to access the funds, HUD must approve the TDHCA Allocation Plan which will amend both the One-Year Action Plan and the five-year Consolidated Plan. A brief Fact Sheet on the HUD website provides basic information regarding NHTF:

The NHTF was established under Title I of the Housing and Economic Recovery Act of 2008, Section 1131 (Public Law 110-289). Section 1131 of HERA amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) (Act) to add a new section 1337, entitled "Affordable Housing Allocation" and a new section 1338, entitled "Housing Trust Fund." HUD has published an interim rule http://www.gpo.gov/fdsys/pkg/FR-2015-01-30/pdf/2015-01642.pdf which includes regulatory requirements for implementation and administration of NHTF, And a Notice regarding Allocation Plans

TDHCA has held two roundtables (Austin-April 25, 2016, and Houston-May 10, 2016) to gather stakeholder input in preparation for drafting the Allocation Plan. Since those meetings, HUD published the Housing Trust Fund Allocation Plan Guide https://www.hudexchange.info/resources/documents/HTF-Grantee-Allocation-Plan-Sample-Form.pdf on May 17, 2016.

Staff will present the draft plan to the Board at the July 14, 2016, meeting with a 30-day public comment period following. The final Plan will be presented at the Board meeting of September 8, 2016, and transmitted to HUD after acceptance. TDHCA will be requesting waiver of HUD's August 16 deadline as it does not allow sufficient time for stakeholder input and public comment within our Board schedule.

Apply for Funds

Visit the Apply for Funds page for the Uniform Multifamily Application and supplemental program materials needed to complete your application. Visit the NOFAs and Rules page for Notices of Funding Availability and the Uniform Multifamily Rules for scoring, threshold, and other requirements.

Current Application Cycle Information

Additional Guidance and Resources

Additional reference materials for applicants and awardees are included below. For information regarding public hearings and TDHCA Board meetings, please visit the Community Information page. For forums and recent announcements, please visit the Announcements & Forums page. For a list of upcoming events and trainings, please review the TDHCA Events Calendar.

For information on the following Federal Cross Cutting Requirements information, please click on the following links:

For training information related to any of these Federal Cross Cutting Requirements, please visit the Program Services Training page.

For instructions on how to request a Mid Construction and Final Construction Inspection, please visit the Compliance division’s Construction Inspections and Accessibility page.

Post Award Guidance

Visit the Compliance page for monitoring guidelines, Annual Owner's Compliance Report information, and the Income and Rent tool.

Multifamily Direct Loan Draw Processing Forms

Multifamily Direct Loan Draw Instructions

Multifamily Direct Loan Webinar: Award to Final Draw (presented 10/25/13)