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Presentation, discussion, and possible action regarding material amendments to previous 9% Competitive Housing Tax Credit Applications to award State Housing Tax Credits and approval of the waiting list for 2025 State Housing Tax Credit Applications.
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RECOMMENDED ACTION
recommendation
WHEREAS, The Department is authorized to allocate State Housing Tax Credits (SHTC) of which $13,325,000 million is to supplement 2025 Competitive awards;
WHEREAS, as established in 10 TAC §11.1008, the Department has prioritized applications proposing the most additional low income Units for households at or below 30% of AMGI relative to the State Housing Tax Credit Request; and
WHEREAS, as part of the process of awarding those credits, the affected Development Owners request approval for material amendments to add the State Housing Tax Credit as a source, revise other financing, and increase the number of 30% Units.
NOW, therefore, it is hereby
RESOLVED, that the list of recommended Applications for Final Certifications of State Housing Tax Credits is hereby approved in the form presented at this meeting;
FURTHER RESOLVED, that the requested amendments are approved as presented at this meeting, and the Executive Director and his designees are hereby authorized, directed, and empowered to take all necessary action to effectuate the foregoing; and
FURTHER RESOLVED, that the Board’s approval is conditioned upon the completion of underwriting and program review, the imposing of all conditions of underwriting, the imposing of the conditions resulting from staff review, the completion of any other reviews required to ensure compliance with the applicable rules and requirements for the State Housing Tax Credit Program, and any other special conditions the Board may consider appropriate.
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BACKGROUND
The SHTC award recommendations for December 11, 2025, are presented in the Board materials. To the extent that some applications do not yet have a final underwriting or program assessment, those applications will be considered conditionally recommended, with the condition being the completion of those reviews and recommendation of award or award with conditions. For any awards made by the Board by this item that subsequently are recommended by underwriting with conditions, these conditions will be considered to be the Board’s conditions of the award. Some of the Real Estate Analysis reports also discuss additional material amendments that the Development Owner has requested. The Board is not approving any material amendment other than the conditional award of the State Housing Tax Credits at this time.
REPORTS LOCATED IN THE BOARD BOOK
Ø Report 1: Recommended Applications
Ø Report 2: Real Estate Analysis Summaries of all amendment requests, including conditions to be placed on awards.
APPLICATION SUBMISSIONS
Fourteen Applications submitted an “Intent-to-Apply” for SHTCs, seeking a total of $21,890,361.
There are currently eight Applications eligible for consideration. Two Applicants were not awarded 2025 9% credits at the late July meeting, which means that those Applications are ineligible for consideration for the SHTC. Four additional Applications were withdrawn from consideration. Collectively, the remaining eligible Applicants requested $17,632,000 SHTCs. Staff has recommended the full request amount for Seven of the Eight Applications. The remaining Application could not be funded in full, and staff has recommended reducing the award to the total remaining credits in the 2025 ceiling.
Eight Applications are recommended for an award as reflected in Report 1, attached. There is no waitlist, as all eligible Applications were funded or withdrew a request of State Housing Tax Credits.
RECOMMENDATION PROCESS
Because more requests were received than can be fully funded, staff was required to determine which Applications were most competitive for these new credits. In making recommendations, staff relied on the priorities outlined in 10 TAC §11.1008, which establishes that priority shall be given to Applications that propose to create the most 30% AMGI Units using the SHTC. These are not additional physical Units that will be constructed - rather, they are Units that were proposed in the initial Application at a higher income and rent level that will be converted to the 30% income and rent level using the SHTC.
Units for households at or below 30% of AMGI proposed in the original application were not considered when determining this priority. The initial SHTC award was made to the Applicant with the lowest request amount per additional Units provided. Subsequent awards were made using the same metric until the Department could no longer fully fund a credit request.
The eight recommendations reflect commitments of $13,325,000, which leaves $0 available. Applicants recommended for an award committed a total of 74 additional 30% Units for households at or below 30% of AMGI.
Applicants recommended for an award submitted material amendment requests to add the SHTC as a source, increase the number of low-income Units for households at or below 30% of AMGI, and revised all other necessary exhibits.