Multifamily Finance Division Updates
- Public Hearing Schedule for Public Comment on the 2013 Competitive Housing Tax Credit Applications (PDF) - Public comments accepted until June 14, 2013
- February 5, 2013 (PDF)
- June 1, 2012 (PDF)
- February 10, 2012 (PDF)
Housing Tax Credit Program
The Housing Tax Credit (HTC) Program receives authority from the U.S. Treasury Department to provide tax credits to nonprofits, for-profit developers, and syndicators (or investors). The targeted beneficiaries of the program are low income families at or below 60% AMFI. The program's purpose is to encourage the development and preservation of rental housing for low income families, provide for the participation of for-profit and nonprofit organizations in the program, maximize the number of units added to the state's housing supply, and prevent losses in the state's supply of affordable housing. HTC is regionally allocated in thirteen (13) state services regions and further distributed in each of those regions into Rural and Urban/Exurban categories. Read the Housing Tax Credits Overview (PDF) for additional information.
Multifamily Bond Program
The Multifamily Bond Program issues taxable and tax-exempt mortgage revenue bonds (MRBs) to fund loans to nonprofit and for-profit developers. The proceeds of the bonds are used to finance the construction, acquisition, or rehabilitation of multifamily properties, with the targeted beneficiaries being low income households. Property owners are also required to offer a variety of services to benefit the residents of the development. Specific tenant programs must be designed to meet the needs of the current tenant profile and must be approved annually by TDHCA.
Multifamily HOME Programs
The HOME Multifamily Development Program provides funding to Public Housing Authorities, nonprofits, and for profit entities for the new construction or rehabilitation of affordable multifamily rental developments. Funding is provided in the form of low interest bearing, repayable loans. Multifamily developments carry long-term rent and income restrictions and may be layered with additional funding sources (such as Housing Tax Credits). Development funds are awarded on a first-come, first-served basis through an application submitted under the published Notice of Funding Availability (NOFA).
Preservation of existing affordable and subsidized housing stock is a critical element to achieving the Department's mission to provide safe, decent and affordable housing. Given current demographic projections for the state of Texas, stabilization of the existing stock of affordable housing is as equally important as new production in terms of meeting future demand for housing.
Tax Credit Exchange Program
The Tax Credit Exchange Program receives authority from the U.S. Treasury Department and Section 1602 of the American Reinvestment and Recovery Act of 2009 "ARRA”. The Exchange Program allows for developments that have been allocated tax credits in 2007, 2008 and 2009 to return their credits and “exchange” them for a cash amount. The program is modeled after the Housing Tax Credit Program with some modifications that give priority to developments that are located in Rural areas or are considered At-Risk.
Tax Credit Assistance Program (TCAP)
Title XII of the Recovery Act appropriated HOME Investment Partnerships (HOME) Program funds to assist in the development of properties that had been awarded low income housing tax credits (HTCs) between October 1, 2006, and September 30, 2009. The Tax Credit Assistance Program (TCAP) provides funding to compensate for the current devaluation of HTCs, which is jeopardizing the financial stability of these affordable rental developments. TCAP funds are to be used to help provide additional financing for shovel-ready developments giving priority to At-Risk and Rural developments. All TCAP funds must be used or returned by February 16, 2012.