The Texas Department of Housing and Community Affairs recently released a staff draft of the 2019 QAP. Staff especially welcome comment regarding the tie breaker found on page 32. Proposed changes include the following:

  • Tie breaker:
    • Among applications in census tracts with poverty rates below the median poverty rate of all census tracts with submitted applications, the development in the census tract with the highest share of statewide rent burden for renter households at or below 80% AMFI (Area Median Family Income)
    • Removal of urban core proximity, opportunity index, and fewest HTC units per capita criteria
  • Adaptive Reuse: Definition no longer requires that all exterior walls remain in place, rather that a “substantial portion of the original building remains at completion”
  • Average Income Election Scoring: Projects that propose use of the average income election will be scored by how far below the projects average AMI will be – dependent on the geography of the area, the project could receive as much as 16 points for proposing a 54% AMI average and as little as 12 points for proposing a 57% average AMI.
  • Underserved Area: Addition of two new qualifying scenarios
    • Census tract without another awarded project in the past 10 years with both a pverty rate greater than 20% and a median gross rent greater than the county’s HUD Fair Market Rent (2 points)
    • At-Risk or USDA Development placed in service 30 or more years ago, still occupied, and has not yet received federal funding or LIHTC equity for Rehabilitation (3 points)

TDHCA welcomes stakeholder input on the staff DRAFT. While this DRAFT creates an opportunity for discussion and stakeholder input, the input received will NOT be treated as “public comment” under the rulemaking provisions of the Administrative Procedures Act as it may or may not (depending on input) ultimately be the version of the rule presented to the Board for publication in the Texas Register for official public comment.

A meeting of the Board Rules Committee will be held at 1:30 p.m., on Wednesday, September 5, 2018, in Capitol Extension Hearing Room E1.010, to discuss the draft QAP. It is anticipated that at the Board meeting of September 6, 2018, a proposed form of the QAP will be presented for consideration and possible action to approve publication in the Texas Register. That will establish the official public comment period.

Input may be sent to Multifamily Policy Research Specialist Patrick Russell at patrick.russell@tdhca.state.tx.us, or posted to the TDHCA online forum. Any input is requested to be provided by August 17, 2018, by 5:00 p.m., Austin local time. You should monitor the Department’s website on this matter because it is possible that, in response to input, staff may post one or more revisions as a way to further discussion and understanding.

For questions, please contact TDHCA Multifamily Policy Research Specialist Patrick Russell at 512-475-0927 or patrick.russell@tdhca.state.tx.us.