title
Report relating to the 2025 Non-competitive 4% Housing Tax Credit Program and a preliminary 2026 Program forecast.
end
BACKGROUND
The 4% Housing Tax Credit (HTC) applications are reviewed by program, underwriting, and compliance staff within an approximately 90-day period, and Determination Notices are issued once all reviews are complete and the underwriting report is posted to the Department’s website. Applications are submitted at the beginning of each month and are then slated for a Determination Notice to be issued approximately 90 days later, which generally coincides with the Board meeting calendar, in order to provide internal and external expectations regarding the Determination Notice issuance date.
2025 Application Log Summary
The 2025 PAB program annual ceiling amount was $4 billion, and as of December 18, 2025, eligible requests totaled approximately $9.7 billion, with much of the requests coming from multifamily issuers. The 2025 4% HTC Application Log is included as Exhibit A and reflects those applications that have been submitted to TDHCA from December 2024 through December 2025 in conjunction with the issuance of bond reservations from the Bond Review Board.
Currently, there are 17 applications under review for a total of 2,758 units, and approximately $32M in requested 4% Housing Tax Credits. Additionally, reflected on the log are 28 applications that have been approved, and have had Determination Notices issued, but have yet to close. Those approved applications represent total issuances of more than $69M in 4% Housing Tax Credits, and 6,050 total units. Moreover, the log reflects 19 applications that have closed on their respective bond allocations. Those projects that have closed represent 4,185 units and over $45 million in 4% Housing Tax Credits. Altogether, when considering what has closed, been approved, and is currently active, the total number of units is 12,993.
Also reflected on the log are three pre-applications that were submitted to TDHCA and added to the Department’s waiting list for a bond reservation during the 2025 program year.
Finally, the log reflects those applications that were submitted to TDHCA, but subsequently withdrawn. This represents a total of 7,868 units. The reasoning behind these withdrawals were varied, but most commonly involved feasibility and timing concerns.
2026 Application Forecast
The 2026 PAB program has an annual ceiling amount of approximately $4.2 billion, and as of December 23, 2025, eligible requests total approximately $2.6 billion, with much of the requests coming from multifamily issuers. Based on information published by the Texas Bond Review Board, TDHCA staff expects to receive approximately 40 4% HTC applications throughout the month of January, in conjunction with the issuance of 2026 program year bond reservations.