title
Presentation and Discussion of Texas Housing Trust Fund (Texas HTF).
end
BACKGROUND
The Texas Legislature established the Housing Trust Fund in 1993 to provide state general revenue for affordable housing activities. The program receives state appropriations, which include loan repayments from previous Texas HTF projects, to fund the Texas HTF. The Department awards funding in the form of grants and/or loans to nonprofits, units of local government, councils of government, local mental health authorities, other public agencies, and public housing agencies to serve low-income households. State statute does not direct the specific activities that are to be implemented but requires the publication of a biennial plan that details how the Department will program and expend the funds. Over the years, the Department implemented a diversity of programs with Texas HTF resources to varying success. The Texas HTF has now evolved to focus on two successful primary programs: the Texas Bootstrap Loan Program, which satisfies the statutory requirement to operate an owner-builder loan program, and the Amy Young Barrier Removal Program.
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 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. The majority of 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...
Click here for full text