TDHCA January 2022 Meeting Highlights

The TDHCA has convened its meeting of the Board of Directors at 10:00 a.m., January 13, 2022 at the John H. Regan Building, JHR 140 1400 Congress Ave Austin, Texas 78701

Summary of the January 13 meeting

CALL TO ORDER ROLL CALL Leo Vasquez, President CERTIFICATE OF QUORUM

Call for order at 10:02 a.m. Bradden; Absent Thomason.

CONSENT AGENDA approved.

ITEM 3: APPROVAL OF THE FOLLOWING POINTS PRESENTED IN BOARD DOCUMENTS:

EXECUTIVE REPORT

BOBBY WILKINSON; EXECUTIVE DIRECTOR, TDHCA

  1. Executive Director’s Report
    • Rent relief began in February 2021 – $1.97 billion distributed in rent and utilities to 307,000 households. Evictions avoided for 20,000 households. For this month, TDHCA will continue to process some requests and appeals, with now less than 2% of funds available. TDHCA asked for more federal funding but didn’t expect a lot of money.
    • The Homeowners Assistance Fund (HAF) has yet to receive HUD approval. 26 states have received approval. TDHCA aims to launch the program by February 21
      1. Two HAF pilots – 1) Only open to homeowners with delinquent loans in the TDHCA portfolio 2) Only located in Hidalgo County. Pilot opened 10.01.22 that will help owners with property costs such as HOA condo fees, liens or insurance. 312 owners in the process/system. It will be a slow program compared to rent relief, as it is more focused on creating long-term sustainable homeownerships.
    • Multi-Family Real Estate Compliance – The IRS Has Issued a Notice
      1. HTC 9% Rewards 2018:
        The go-live deadline has been extended to December 31, 2022. 2019 9% HTC Awards
        The deadline for the 10% test has been extended to July 1, 2022.
        The go-live deadline has been extended to December 31, 2023. 2020 9% HTC Awards
        The deadline for the 10% test has been extended to December 31, 2022.
        The go-live deadline has been extended to December 31, 2023.

        2021 9% HTC Price
        The deadline for the 10% test has been extended to December 31, 2022.

    • 9% lap started. TDHCA received many applications.
    • About 1/3 of TDHCA’s staff (249 employees) currently works in the office. The others are distant.

There are 10-15 TDHCA job vacancies

BROOKE BOSTON; DEPUTY DIRECTOR OF PROGRAMS

  1. PAQ 2023 Development Plan Report
  • The plan was developed based on the results of the survey conducted by TDHCA
  • Big Changes
    • There will be two rounds of QIP drafts, not just one – they would post a draft, get feedback on big changes, suggest those changes be made, then get feedback on those changes, then vote on them
    • Data analysis and research: Periodically post results and ask for feedback using the department’s web forum or list survey
    • Strategy for getting feedback:
      • In the past they’ve had 3-5 roundtables – they don’t usually provide a lot of in-depth discussion on a topic. Or collect enough dialogues.
      • Facilitate 3 intensive working groups, separate from roundtables – working groups will meet remotely for in-depth discussion and topic-focused writing – this year’s 3 topics are all scoring points – proximity to jobs, underserved and tax credit density points, and tenant’s right of first refusal
    • Another approach is micro-revisions – staff will write preliminary language on various specific small sections – published and get feedback. For some of these issues that are seen even before the drafts are released. It will be on the very inclusive site
    • We will survey specific items – especially items where it is difficult to get consensus in large groups
    • In-person roundtables – no virtual component – ​​how many people like 50-70 people. Will likely take place at a hotel or pickle center. Survey comments said to keep them in Austin.

ARTICLE 4: RULES:

BROOKE BOSTON; DEPUTY DIRECTOR OF PROGRAMS

Presentation, discussion and possible action on an order proposing repeal and proposed new rule for 10 TAC Chapter 1, Administration, Subchapter A, General Policies and Procedures, 1.5 Applicability of Federally Declared Disaster Waiver, and an order directing their publication for public comment in the Texas Register

  • Currently, this rule states that where a federal waiver that originates from a federal regulation and is incorporated into the TDHCA rules, the executive director may also waive or suspend that rule. It’s a federal requirement, so we put it in their rules. The TDHCA proposes to extend this authority – be sure it would also apply to state statutes – to state statutes on a state program and to federal programs. For example, a lot of government code 2306 applies to tax credits, so if the governor wanted to waive one of those, but they could put it in a rule, that’ll pass that and will allow the same overriding process to occur. . They are also going to let this rule apply in the event of a state disaster.
  • TDHCA will publish it for comment from January 28 to February 28, and then TDHCA will bring it back to you for final adoption. We make it applicable to state issues – whether it’s a state program or a federal program.

Motion made by Thomas, seconded by Braden

The movement carries. The Board approves the staff recommendation on item 4 to repeal the old rule and publish the new draft rule.

ARTICLE 5: AMERICAN HOME RESCUE PLAN

NAOMI CANTU; ARP RECEPTION DIRECTOR

Presentation, discussion and possible action on the approval of a draft HOME-ARP plan to be published for public comment and to publish notices of availability of funding after acceptance of the plan

  • TDHCA received $132.9 million for HOME-ARP. Possible activities include rental assistance, affordable housing construction, support services, non-congregate emergency shelters, supportive housing, and NPO operating costs
  • These funds are built on the foundation of the annual shelter program with waivers and new activities that focus on the homeless and other high-risk populations. It must be spent by October 2030. In October 2020 – TDHCA held 9 consultations on how we should use HOME-ARP – while public input varied widely – the greatest need was capital investment in long-term solutions – this need is reflected in the logbook.
    • Collective shelters – Traditional shelter with 1 or 2 large bedrooms
    • Non-collective shelters – households should have individual rooms, stop the spread of airborne viruses
  • Submit for public comment from January 14 to January 31, 2022; if the comments are not detailed, the executive director will proceed with submitting the plan to HUD without further action by the board. If there are a lot of comments, it will be submitted to the board in February. As part of HUD’s endorsement plan—staff will issue NOFAs for HOME ARP rental housing and HOME ARP non-collective housing—each offered with capacity building and nonprofit operating cost assistance.
  • Staff are acting to release these NOFAs and expedite HOME ARP application cycles. HUD requested a minimum of 15 days open for public comment, TDHCA set it at 17 days.

In item 5, the Board approves staff’s recommendation to release the draft HOME-ARP plan for public comment and to release funding notices after plan approval.

Moved by Braden, seconded by Thomas – motion carried.

SECTION 4: OWNER ASSISTANCE FUND

TANYA BIRKS; DIRECTOR OF THE OWNER’S AID FUND

Presentation, discussion, and possible action on the delegation of authority to the Executive Director or designate of the Department to disburse up to $10,000,000 in awards to HUD-approved housing counseling agencies to provide housing counseling housing and homebuyer education services for the Homeowners Assistance Fund

  • Kick-off live from mid to end of February
  • Housing Counseling Elements for the HAF Program – 10 million for statewide coverage – The US Treasury has state-specific guidelines. There are currently 45-50 HUD-approved agencies that could handle housing counseling statewide – the board is asking for flexibility to finalize the model contract for the housing counselors we plan to contract with – gives also to TDHCA the opportunity to disperse $10 million for real budgets for organizations across the state – understanding that some areas of the state will not have as much participation or heavier pull – TDHCA wants to quickly meet with these organizations for faster disbursement. TDHCA has heard from many organizations who wish to participate as housing counselors or drop-in centers – this will ensure they are ready to spring into action when the time comes.
  • Large organizations in Texas have the capacity to fulfill both roles, as a reception center and as a housing counselor – the only caveat is that if these organizations serve as a reception and housing counselor – they must always meet the criteria for both – they must show TDHCA that they have the ability to do both. The aim is that people who need these services can work with organisations/people in their own neighborhood – local agencies can also help guide TDHCA in their future policy.
  • $10 million is the total budget – anticipating the contracts that TDHCA will sign will be 18 months unless in policy who finds that is different.

In item 6, council approves the staff recommendation on housing council scholarships for the new homeowners relief fund. Motion made by Thomas, seconded by Marchant  motion carried

SECTION 7: MULTI-FAMILY FINANCING

CODY CAMPBELL; DIRECTOR OF MULTI-FAMILY PROGRAMS

  • Presentation, discussion and possible action regarding a waiver of 10 TAC 11.1003(b) of the Qualified Allocation Plan 2022 regarding the Maximum Additional Demand Limit for Villas at Pine Grove (#19364) in Lufkin
  • Staff recommends denying the waiver request. If they refuse the derogation, the project will not be feasible.
  • 68 at Lufkin and received an allocation of approximately $1 million in tax credits in 2019. The development has seen price increases due to COVID and winter freezing. If they get more funding, the amount will be deducted from the 2022 9% competitive cap. They are not eligible for House Trust or Multifamily Loans.

In item 7a, the Board disagrees with the staff recommendation and grants the waiver request as amended by the Board. 15% cap, pending IRA approval. Motion presented by Thomas and seconded by Braden

  • Presentation, Discussion, and Possible Action Regarding Multi-Family Direct Loan (MFDL) 2021-3 Awards Notice of Funding Availability (NOFA), as Amended

In item 7c, the Board approves the staff recommendation to award the 2021-3 MFDL Awards. Motion made by Braden, seconded by Marchant – motion carried.

ADJOURNMENT at 11:34 a.m.

Next meeting on February 10