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Report on the Development of the 2026 Qualified Allocation Plan
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BACKGROUND
The Texas Qualified Allocation Plan (QAP) is a document developed by the Department that outlines the policies, procedures, and scoring criteria used to allocate federal Low-Income Housing Tax Credits (LIHTC) in Texas. These tax credits support the development and rehabilitation of affordable rental housing for low-income households.
The QAP establishes:
* Threshold eligibility requirements for Applicants and Developments
* Scoring criteria for Applications based on housing needs and priorities
* Underwriting requirements
The QAP must comply with both federal requirements under Section 42 of the Internal Revenue Code and state housing priorities established by the Texas Legislature and TDHCA's Governing Board.
Although state law permits a biennial update, TDHCA has traditionally revised the QAP annually. Each spring, the Department gathers input through roundtables, workgroups, and committee meetings. An informal draft is released in the summer, followed by a formal draft presented to the Board in September. After a public comment period, a final version is submitted to the Board in November and then sent to the Governor, who may approve, modify, or reject it. This annual cycle promotes transparency and responsiveness to Texas's housing needs.
Department staff has identified several key areas of the QAP to propose for revision this year. Suggested revisions are attached to this report for some of the following items.
Concerted Revitalization Plans (Suggested Revisions Attached)
Federal law requires the Department to give preference to projects that contribute to a concerted community revitalization plan, which is accomplished through the Concerted Revitalization Plan (CRP) scoring item. This item is worth seven points, and is not available to Applications that elect points under the Opportunity Index, a separate scoring item that rewards proximity to desirable Census Tracts and...
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