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Report on the Development of the 2027 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.
The Department held a public roundtable discussion to discuss the 2027 QAP on May 20, 2026. Based on that discussion, staff believes that the following topics warrant specific discussion at this meeting of the Rules Committee. Other changes that were discussed at that meeting, including clerical changes or minor procedural revisions, are not included in this report, as staff does not believe that those changes necessitate further discussion.
Undesirable Site Features
The QAP includes a list of Undesirable Site Features that generally render a Development Site ineligible unless the Applicant provides satisfactory mitigation as determine...
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