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Presentation, discussion, and possible action on the SFY 2026 Operating Budget
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RECOMMENDED ACTION
recommendation
WHEREAS, the Governing Board of the Texas Department of Housing and Community Affairs (the Department or TDHCA) is required to approve a SFY 2026 Operating Budget; and
WHEREAS, the Department is required to submit the budget to the Office of the Governor (OOG) and the Legislative Budget Board (LBB);
NOW, therefore, it is hereby
RESOLVED, that the SFY 2026 Operating Budget, in the form presented to this meeting, is hereby approved; and
FURTHER RESOLVED, that upon approval by the TDHCA Governing Board, the Department will submit the budget to the OOG and the LBB.
BACKGROUND
In accordance with Tex. Gov’t Code §2306.112 et seq., TDHCA is charged with preparing an operating budget for Board adoption on or before September 1 of each fiscal year. The budget includes operational expenses distributed among the Department’s divisions. It does not include federal or state program funds that pass through to subrecipients except for administrative funds used by the Department associated with those federal or state funds that are retained and reflected in the budget. This budget anticipates maximizing all federal administrative resources. In addition, in accordance with internal auditing standards and the Board’s internal audit charter, the budget includes the Internal Audit Division’s annual operating budget.
This SFY 2026 Internal Operating Budget, which the Board is being asked to approve, corresponds to the first year of the biennial General Appropriations Act (GAA) passed by the 89th Texas Legislature which appropriated $488,025,349. In total, this budget provides for administrative expenditures and associated revenues of $48,494,906 or a $2,456,368 (4.8%) decrease from the prior year’s budget. Of the total net decrease, $8,222,290 is associated with temporary federal funding, offset by a $1,717,302 increase for Capital Budget projects and a $4,048,620 increase associated with the Department’s core programs.
The budget reflects 397 Full Time Equivalents (FTEs) of which 64 FTEs are appropriated to the Manufactured Housing Division. The remaining 333 are TDHCA FTEs which are composed of 291 CAP FTEs, and 42 Article IX (Temporary) FTEs associated with COVID-19 stimulus federal funds.
Additionally, the Housing Finance Division budget, which is funded with fees generated from the Department’s Bond, Housing Tax Credit, and Asset Management, Compliance, and Migrant Labor activities, increased by $3,468,699 or 15.7%. This increase is primarily attributed to the addition of 17 FTEs and an increase in the Capital Budget and contained in the GAA.
For a complete explanation of the aforementioned budget categories and details, please see the accompanying Comparison Report.
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