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Report relating to the conclusion of the 2024 Non-competitive 4% Housing Tax Credit Program and an update on the 2025 Non-competitive 4% Housing Tax Credit Program.
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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.
2024 Application Log Summary
The 2024 Private Activity Bond (PAB) program annual ceiling amount was $3.8 billion, and as of December 19, 2024, eligible requests totaled approximately $8.2 billion, with much of the requests coming from multifamily issuers. The 2024 4% HTC Application Log is included as Exhibit A and reflects those applications that were submitted to TDHCA from December 2023 through December 2024 in conjunction with the issuance of bond reservations from the Bond Review Board.
Currently, there are four applications that have been approved, and have had Determination Notices issued, but have yet to close. Those approved applications represent total issuances of more than $11 million in 4% Housing Tax Credits, and 1,045 total units. Additionally, the log reflects 53 applications that have closed on their respective bond allocations. Those projects that have closed represent 12,586 units and over $147 million in 4% Housing Tax Credits. Altogether, when considering what has closed, and been approved, the total number of units is 13,631, and the total recommended tax credit amount is approximately $158 million.
Also reflected on the log are 12 pre-applications that were submitted to TDHCA and added to the Department’s waiting list for a bond reservation during the 2024 program year.
Finally, the log reflects those applications that were submitted to TDHCA, but subsequently withdrawn. This represents a total of 6,916 units. The reasoning behind these withdrawals were varied, but most involved feasibility and timing concerns.
The 2024 program year has concluded, and the figures represented herein are considered final.
2025 Application Log Summary
The 2025 PAB program has an annual ceiling amount of approximately $4 billion, and as of August 1, 2025, eligible requests total approximately $6.18 billion, with much of the requests coming from multifamily issuers. The 2025 4% HTC Application Log is included as Exhibit B and reflects those applications that were submitted to TDHCA from January 2025 through September 2025 in conjunction with the issuance of bond reservations from the Bond Review Board.
Currently, there are 30 applications under review for a total of 6,395 units, and approximately $78 million in requested 4% Housing Tax Credits. Additionally, reflected on the log are seven applications that have been approved, and have had Determination Notices issued, but have yet to close. Those approved applications represent total issuances of more than $12 million in 4% Housing Tax Credits, and 1,163 total units. Moreover, the log reflects 16 applications that have closed on their respective bond allocations. Those projects that have closed represent 3,449 units and over $34 million in 4% Housing Tax Credits. Altogether, when considering what has closed, been approved, and is currently active, the total number of units is 11,007. Considering the recent collapse of bond cap, staff expects several more 4% applications to be submitted to TDHCA in the coming months.
Finally, the log reflects those applications that were submitted to TDHCA, but subsequently withdrawn. This represents a total of 6,455 units. The reasoning behind these withdrawals were varied, but most involved feasibility and timing concerns.