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Quarterly report relating to staff-issued Determination Notices for 2023 Non-competitive 4% Housing Tax Credit applications
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BACKGROUND
The 4% Housing Tax Credit (HTC) applications are reviewed by program, underwriting, and compliance staff within an approximately 90-day period; and Determination Notices are issued once all reviews are complete and the underwriting report is posted to the Department’s website. Applications are submitted at the beginning of each month and are then slated for a Determination Notice to be issued approximately 90 days later, which generally coincides with the Board meeting calendar, in order to provide internal and external expectations regarding the Determination Notice issuance date.
The 4% HTC applications listed in Exhibit A include those where the Determination Notice was issued administratively by staff. From September through November, staff has administratively issued eight Determination Notices. This represents 2,138 total units and $23,626,643 in annual 4% Housing Tax Credits.
2023 Application Log Summary
The 2023 Private Activity Bond (PAB) program has an annual ceiling amount of approximately $3.6 billion, and as of November 21, 2023, eligible requests total approximately $7.5 billion, with much of the requests coming from multifamily issuers that participated in the 2023 PAB Lottery. As of November 15, the last day of the calendar year to issue a bond reservation, there was $293 million in unreserved requests. The 2023 4% HTC Application Log is included as Exhibit B and reflects those applications that have been submitted to TDHCA from December 2022 through November 2023 in conjunction with the issuance of bond reservations from the Bond Review Board.
Currently, there are 16 applications under review for a total of 3,759 units. Additionally, reflected on the log are five applications that have been approved, and have had Determination Notices issued administratively, but have yet to close. Those approved applications represent total issuances of approximately $15 million in 4% Housing Tax Credits. Finally, the log also reflects the 37 applications that have closed on their respective bond allocations. Those projects that have closed represent 7,681 units, and approximately $82 million in 4% Housing Tax Credits. Altogether, when considering what has closed, been approved, and is currently active, the total number of units is 12,477.
Also reflected on the log are seven pre-applications that were submitted to TDHCA and added to the Department’s waiting list for a bond reservation either for the 2023 or 2024 program year.
Finally, the log reflects those applications that were submitted to TDHCA, but subsequently withdrawn. This represented a total of 7,141 units. The reasoning behind these withdrawals were varied, but most commonly involved feasibility and timing concerns.