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Presentation and Discussion on Single Family HOME Program Survey Results and Rule Updates
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BACKGROUND
REPORT ON SINGLE FAMILY HOME PROGRAM SURVEY
As requested at the April 9, 2026, meeting of the Single Family Committee, Single Family and Homeless Programs (SFHP) staff performed outreach to stakeholders in HOME Single Family Homeownership Programs. A survey was designed by SFHP staff, and feedback was solicited through TDHCA’s list serv. The survey was active from April 15, 2026, through April 21, 2026, and was open to any person to complete. A total of 56 responses were received from the following groups:
1. 32 employees and five elected officials of HOME Program Administrators or potential administrators (cities, counties, and nonprofits)
2. Seven grant consultants from four consulting firms
3. 12 general members of the public (seven identified as either previously assisted or as applicants for assistance)
Responses from general members of the public are included in the attached Excel file detailing results. The primary focus of the survey was Group 1, HOME Program Administrators and Group 2, grant consultants. Each group was directed to questions specific to that group, with an opportunity to provide a long form comment at the end with general feedback about the topic.
HOME Program Administrators were asked to rank HOME Program offerings in the order of need in their community. Of the 31 respondents, 22 currently administer HRA, and 9 do not. Two stated that they administer CFD, HANC, and/or SFD, and one stated that they administer TBRA.
87% of respondents ranked Homeowner Reconstruction Assistance (HRA) as the highest need, followed by Contract for Deed (CFD), Homebuyer Assistance with New Construction (HANC), Single Family Development (SFD), Tenant-Based Rental Assistance (TBRA), and Downpayment Assistance, in order of rank.
The 22 respondents that administer HRA were asked about impact of participation in the program based on various forms of assistance, including monthly amortizing loans, exceptions to loan repayment for certain households, due on sale provisions, and more generally whether assistance being provided as a loan overall would impact participation:
Consulting firms were asked the same question, and the results were similar:
Responses from Administrators when asked to share any additional information they would like to provide to TDHCA show overwhelming support for the HOME HRA program, which they believe is essential for helping low-income, elderly, and disabled residents access safe housing and remain in their homes. It also improves neighborhoods by reducing blight and increasing property values.
The biggest concern noted was that adding repayment requirements would discourage participation or make the program inaccessible, as most beneficiaries cannot afford additional costs. Some communities say they may stop participating if this change occurs.
While a few suggest exploring flexible financing options, the strong consensus is to keep the program in its current grant-based structure to maintain its effectiveness and reach.
REPORT ON PROPOSED SINGLE FAMILY DEVELOPMENT PROGRAM UPDATES
On April 20, 2026, staff attended a meeting organized by Committee Chair Harper. Attendees at the meeting included Mr. Harper, executive staff, program staff, and representatives of Habitat Texas, Inc. The purpose of the meeting was to discuss the HOME Single Family Development (SFD) Program. At the meeting, discussion centered around programmatic updates to rules and processes that would allow the SFD Program to align more readily with requirements of Habitat for Humanity affiliates.
The product of the discussion included a timeline of proposed rule changes, as well as an estimated timeline for presentation of a Notice of Funding Availability (NOFA) releasing a portion of TDHCA’s Program Income for the SFD Program.
The proposed Single Family HOME Program updates were approved for publication at the June 4, 2026 Board Meeting, and published in the Texas Register for public comment on June 19, 2026. As of July 1, 2026, one comment from Habitat Texas, Inc. has been received. The rule is anticipated to be presented to the Board for adoption in September. Key changes included in the proposed rule approved by the Board are:
Subchapter B, Availability of Funds, Application Requirements, Review and Award Procedures, General Administrative Requirements, and Resale and Recapture of Funds
§23.23(a)(5)(A)
Includes Single Family Development as a program activity subject to the existing Match requirements.
§23.23(a)(5)
Increases the cash reserve required for an entity applying for HOME funds to $100,000 from $80,000 for program activities involving construction and from $30,000 to $50,000 for tenant-based rental assistance. This increase reflects the need for Administrator to have cash on hand to effectively operate the programs prior to reimbursement.
§23.23(a)(10)
Incorporates a threshold requirement related to prior monitoring. The new requirement excludes Applicants who have had closed, unresolved monitoring findings with disallowed costs in excess of $5,000 in the past 3 years.
§23.24(b) and (c)
Extends term for contracts, including benchmarks within the contract, to incorporate extended deadlines now permitted in federal regulations.
§23.27(f)
Allows for additional hard costs for abatement of hazardous conditions on the site other than those identified in the environmental review but that would cause a code violation, such as abandoning disused wells and filling in cisterns.
§23.28(a)(6)
Removes minimum unit size requirements for single family construction.
Subchapter F, Single Family Development Program
§23.60(b)
Moves requirements necessary for a commitment of funds for Single Family Development contracts into the application requirements to ensure that awards are made only for projects that are ready for the commitment of funds.
§23.60(c)(2)
Incorporates a provision allowing for preference for self-help housing models for award.
§23.60(f)
Incorporates a provision that would allow for the value of volunteer labor and donated materials to be included in the calculation for the developer fee, increasing the available fee for developers utilizing these components in the project.
§23.60(h-i)
Allows for construction to commence prior to identification and qualification of an eligible buyer.
§23.60(j)
Clarifies that Developer’s cost to close the interim loan may be included in the interim construction loan
§23.60(k)
Removes the requirement for the HOME permanent loan to be in first or second lien position and defers to the lien position requirements as outlined in the Single Family Umbrella rule.
§23.60(k)(1)(C)
Removes the increased required front-end ratio for households with income exceeding 50% of Area Median Family Income.
§23.61
Changes to the overall structure of the rule to align with the existing loan closing process and to conform to changes allowing construction to commence prior to identifying the homebuyer.