title
Presentation and Discussion of Single Family Program Activities
end
BACKGROUND
The Single Family and Homeless Programs Division (SFHP) distributes both state and federal funding for a wide range of activities related to single family housing assistance. Programs supported by SFHP assist persons and families in many situations, and this report focuses specifically on our Single Family (SF) offerings.
SF Programs are funded by both the U.S. Department of Housing and Urban Development (HUD) and the Texas Housing Trust Fund (Texas HTF). Most programs are provided through subrecipients (including HOME state recipients). Organizations eligible for funding as subrecipients include nonprofit corporations and units of local government. HOME Single Family Development funds developers of housing, similar to HOME Multifamily Development. Section 8 is unique in that it is self-administered, with households assisted directly by TDHCA staff.
Funding Mechanisms
Non-Section 8 funds may be awarded by TDHCA to subrecipients through either a contract award, or a reservation system agreement. Contract awards are presented to the Board and are an award of funds to the subrecipient to provide a specific amount of funds over a defined period. Alternatively, designation of a subrecipient to have a reservation system agreement does not require approval of the Board as it does not award a specified amount of funds; it allows eligible subrecipients to access a pool of funding and reserve a portion of the pool for activities for individual households. Currently, most SF activities offered utilize a reservation system; only the Colonia Self-Help Centers Program and HOME Single Family Development are typically offered through contract awards. The reservation system allows for funds to be utilized for the activities with the highest demand. It also provides flexibility so that a smaller organization can pursue only a few activities at a time, while a larger organization with greater capacity can pursue a larger number of activities.
SFHP Organizational Structure for SF Programs
• Single Family: The SF team is responsible for the commitment and expenditure of funds for non-Section 8 Single Family Programs. This team is managed by the SF Programs Manager and has a staff of 13. Teams within SF include Production, Performance, and the Office of Colonia Initiatives.
• Section 8: The Section 8 team is responsible for the administration of Section 8 vouchers. This team is managed by the Section 8 Manager and has a staff of nine.
• Fiscal and Reporting: The SFHP Fiscal and Reporting team is responsible financial analysis, planning, federal and state reporting, tracking of commitments and expenditures, and requests for Section 8 vendor payments. This team is managed by the SFHP Fiscal and Reporting Manager and has a staff of four.
HUD Funded Programs
HOME Investment Partnerships Program (HOME) Single Family
• The HOME Program allows TDHCA to utilize funds for multiple activity types, including rental assistance, homebuyer assistance, and assistance with the preservation and production of affordable housing.
• The total HOME allocation of about $45 million per year, inclusive of program income, is split between HOME Single Family activities overseen by SFHP and HOME Multifamily activities overseen by Multifamily Direct Loan staff. The SFHP Fiscal and Reporting team is responsible for preparation of HOME Program financial reports utilized for strategic planning on the use of HOME funds and oversees issues relating to commitment and expenditure for the HOME Program.
• HOME Single Family is administered through subrecipients, state recipients, or developers, depending on the activity type. Many of our state recipients and subrecipients for construction activities utilize the services of consulting firms, which allow very small cities and counties with inadequate internal resources to utilize the HOME Program in their communities.
• About 62% of HOME funding is programmed for SF activities, with the remaining 38% programmed to Multifamily activities.
• TDHCA’s governing statute requires that funds are both subject to a Regional Allocation Formula, and subject to further geographic restrictions:
• 95% of HOME funds must be spent in non-Participating Jurisdictions (PJs)
• 5% of funds must be spent to assist persons with disabilities anywhere in the state (including PJs and non-PJs)
Section 8 Program (Section 8)
• Section 8 provides monthly rental and utility subsidy to eligible low-income households. TDHCA offers many different voucher types for specific populations, each with their own criteria. In its capacity as a Public Housing Authority (PHA TX-901), TDHCA has a service area that includes 34 counties that do not have their own Section 8 Voucher program. The amount of funding provided for Section 8 is contingent on current expenditures as calculated by HUD. The amount of funding provided by HUD is not sufficient to fully utilize the number of available vouchers HUD has said TDHCA can issue.
• Section 8 includes special purpose voucher programs which are available statewide, including Veterans Affairs Supporting Housing Vouchers (VASH), Foster Youth to Independence Vouchers (FYI), and Emergency Housing Vouchers (EHVs).
• Section 8 offers the Project Access Initiative, which utilizes multiple types of Section 8 vouchers to assist eligible households with disabilities transitioning out of institutions, including but not limited to nursing facilities, intermediate care facilities, board and care facilities as defined by HUD, and state psychiatric hospitals. In addition to the regular Project Access Initiative, TDHCA offers a pilot under the Project Access Program where a portion of vouchers are set-aside specifically for those exiting state psychiatric institutions. The pilot requires a waiver from HUD, which is pending for the upcoming five-year period.
• Section 8 is directly administered by TDHCA staff; no subrecipients are involved. TDHCA partners with different entities for special project types, including the Department of Aging and Disability Services for Project Access, Veterans Affairs Medical Centers VASH, and the Department of Family and Protective Services for FYI. TDHCA partnered with Continuums of Care to provide EHVs authorized under the American Rescue Plan Act (ARPA); however, no new EHVs are likely to be issued as funding is limited and set to expire.
Community Development Block Grant (CDBG)
• The Colonia Self-Help Centers Program (CSHC) is funded by the federal Community Development Block Grant (CDBG) through a memorandum of understanding between TDHCA and the Texas Department of Agriculture (who receives the CDBG allocation from HUD for the state). TDHCA receives 2.5% of the state’s CDBG allocation for CSHC, which is about $1.75 million annually.
• CSHC is a statutory program and is required to be administered by CSHCs, which must be located in Cameron (also serving Willacy), El Paso, Hidalgo, Nueces, Starr, Webb counties. TDHCA has also established CSHCs in Maverick and Val Verde counties as allowed in statute.
• Each CSHC may apply for CSHC funds, and if awarded, will receive a contract with a four-year term. At least 80% of the funds must be utilized for housing, 10% may be utilized for public services, and 10% may be utilized for administration.
• CHSC is overseen by the Office of Colonia Initiatives (OCI).
Texas HTF Funded Programs
Texas Bootstrap Loan Program (Bootstrap)
• Bootstrap is funded by a portion of the Texas HTF, including new allocations of state revenue and proceeds from prior Bootstrap loans. A minimum of $3 million per year (if sufficient funds are available) must be made available for Bootstrap per TDHCA’s governing statute.
• Bootstrap is administered through subrecipients that provide self-help housing utilizing a reservation system. Most Bootstrap administrators are Habitat for Humanity affiliates.
• Bootstrap provides repayable loans of up to $45,000 to low-income households. The funds may be utilized for construction loans or permanent financing to purchase and construct new housing or rehabilitate existing housing. The loans are provided at 0% interest, and the household must contribute at least 65% of the labor required for construction.
• Two-thirds of Bootstrap funds must be programmed to census tracts where the median household income is not greater than 75% of the median state household income.
• Further priority is granted to households whose income is less than $17,500 per year, or if the property is in an area where Capitol Recovery Fees, building permit fees, or other fees related to the home to be built are waived.
Amy Young Barrier Removal Program (AYBR)
• AYBR is funded by the remainder of the Texas HTF, including excess non-Bootstrap proceeds paid into the Texas HTF and new allocations of state revenue. The allocation is about $1.6 million per year.
• AYBR is administered through subrecipients and provides grants of up to $22,250 for accessibility modifications for both tenant and owner-occupied property. Up to 25% of the $22,500 may be utilized for repairs to mitigate life-threatening hazards in owner-occupied housing.
• Funds are regionally allocated.