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Presentation, discussion, and possible action to authorize the issuance of the 2027 HOME Investment Partnerships Program Single Family Development Notice of Funding Availability and publication in the Texas Register
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RECOMMENDED ACTION
recommendation
WHEREAS, the Texas Department of Housing and Community Affairs (TDHCA or the Department) is allocated funding by the U.S. Department of Housing and Urban Development (HUD) through the HOME Investment Partnerships (HOME) Program;
WHEREAS, on July 9, 2026, the Board approved the 2026 State of Texas Consolidation Plan One-Year Action Plan (2026 OYAP), which identified Single Family Development as a planned use of funding, including that Program Income and/or deobligated funds may be used for this activity; and
WHEREAS, the Department wishes to release a NOFA for the HOME Single Family Development Program totaling $9,013,778 in accordance with the OYAP and as allowed by Texas Administrative Code §1.19 concerning reallocation of financial assistance;
NOW, therefore, it is hereby
RESOLVED, that the Executive Director and his designees be and each of them hereby are authorized, empowered, and directed, for and on behalf of the Department, to post on the Department’s website and to publish a notification in the Texas Register a 2027 HOME Single Family Development Program NOFA for the amount of $9,013,778, and to make any technical corrections or perform such other acts as may be necessary to effectuate the foregoing.
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BACKGROUND
On July 9, 2026, the Board approved the 2026 State of Texas Consolidation Plan One-Year Action Plan (2026 OYAP), which included programming $3,000,000 from the 2026 allocation of HOME Program funds for Single Family Development (SFD). To augment the amount of the NOFA, staff has identified the availability of additional funds in the amount of $6,013,778 from prior year HOME allocations and HOME Program Income which may be utilized for this purpose in accordance with 10 TAC, Chapter 1, §1.19, Reallocation of Financial Assistance. Staff recommends the release of the 2027 HOME Program Single Family Development NOFA in the amount of $9,103,778 to provide funding for interim construction loans to eligible developers of affordable single family housing, as well as necessary permanent mortgage financing for eligible low-income homebuyers of the properties constructed utilizing SFD funding.
Request for funds under the proposed NOFA allow Applicants to request up to $1,500,000 per Application and Applicant for the development of new single family housing for sale to low-income households.
Applicants must meet the minimum threshold requirements established in 10 TAC Chapter 23 for Single Family Development to be considered for award.
The availability and use of these funds are subject to the Department’s rules governing Administration at 10 TAC Chapter 1; Enforcement at 10 TAC Chapter 2; Single Family Programs Umbrella Rule; at 10 TAC Chapter 20; Single Family HOME Program Rule at 10 TAC Chapter 23; and the federal regulations governing the HOME Program at 24 CFR Part 92. The HOME SFD NOFA was developed in accordance with the Single Family Umbrella and HOME Program Rules.
Funds will be provided under the NOFA as follows:
Award Process
In accordance with 10 TAC §23.22(a), an application received in response to an open application cycle will be prioritized for review based on its “Received Date and Time.” Awards will be recommended based on the date and time the Application has completed review. Applications with outstanding administrative deficiencies may be suspended from further review until all administrative deficiencies have been cured or addressed to the Department's satisfaction. Applications that have completed the review process may be presented to the Board for approval with priority over Applications that continue to have administrative deficiencies at the time Board materials are prepared, regardless of "Received Date." If all funds available under a NOFA are awarded, all remaining Applicants will be notified, and the remaining Applications will not be processed.
Details on the award selection process, handling of administrative deficiencies, funding limitations, eligible and ineligible applicants and activities, threshold requirements, award selection criteria, and application submission requirements are included in the NOFA provided with this action item and, upon approval, will be posted to the Department’s website with notification of the NOFA posting in the Texas Register.
Priorities in the NOFA are granted by staggering the Application submission dates based on selection of priorities. All Applications submitted from September 21, 2026 to January 4, 2027 must reflect the selection of both priorities outlined in 10 TAC §23.60: 1) requiring leveraging of funds by Applicants committing to provide some or all of the permanent purchase money financing, and 2) to including self-help housing in the program design in accordance with the requirements of 10 TAC §24.10(3) related to Owner-Builder Qualifications for the Texas Bootstrap Loan Program.
Applications may be submitted in accordance with the Regional Allocation Formula (RAF), beginning with funds being made available by region and subregion on September 21, 2026. Beginning October 21, funds within each subregion will collapse and be made available by region until November 20, 2026, after which point Applications may propose to serve any area of the state.
Beginning January 5, 2027, Applications may be submitted that select only one of the two priorities outlined in 10 TAC §23.60: 1) requiring leveraging of funds by Applicants committing to provide some or all of the permanent purchase money financing, and 2) to including self-help housing in the program design in accordance with the requirements of 10 TAC §24.10(3) related to Owner-Builder Qualifications for the Texas Bootstrap Loan Program.
Applications that do not reflect either priority, or any other applications, may be submitted on or after February 22, 2027
All Applications must be submitted on or before March 22, 2027.
A table of these timeframes follows:
Funding Type Determination
Applications proposing to serve HOME Participating Jurisdictions (PJs) may only be funded utilizing HOME Program Income. HOME Program Income available under the NOFA will not exceed $6,013,778. Applications proposing to serve areas outside of PJs may be funded with either the 2026 HOME Program allocation or deobligated funding. In the event that requests for funds submitted under the NOFA proposing to serve PJs exceed the amount of funds available in HOME Program Income, other Applications that do not propose to serve PJs may be prioritized for award based on funding availability regardless of the date that the application was received, with a priority still being made first for applications that select both priority options, or second, those that elect one priority option.