<p style="margin-left:0in;" data-pasted="true">Consider and take appropriate action on a request to approve the following items related to the TDHCA Single Family Private Activity Bond Program:</p>

Staff Report & Agenda Item Details

In June 2024 and 2025, the Commissioners Court and TCHFC Board approved similar resolutions to assign volume cap to TDHCA for their single family homeownership program. Although Housing Finance Corporations (HFCs) had previously been very active in financing single family homeownership for low- and moderate-income homebuyers, various market factors and practical considerations have made it difficult or undesirable for HFCs to issue Single Family Mortgage Revenue Bonds (SFMRBs) and implement Mortgage Credit Certificates (MCCs) programs.     <br><br>To support HFCs single family assistance initiatives and to leverage TDHCA’s economies of scale, TDHCA allows HFCs to apply for single family PAB volume cap and then assign it to TDHCA. For continuance of this program in Travis County, TCHFC must apply for PAB volume cap through the Texas BRB and TDHCA. TDHCA will originate mortgage loans for first-time homebuyers and veterans on the HFCs behalf, using its network of approved lenders. TDHCA handles loan servicing, marketing and compliance for the life of the loan, minimizing the workload for TCHFC staff. TCHFC will benefit by receiving a fee on loans originated in its jurisdiction. This program enables TCHFC to actively support affordable homeownership for first-time homebuyers and veterans in Travis County while allowing TDHCA to administer the program.<br><br>Over the past three years, the Travis County HFC has assigned a total of $50,000,000 in Private Activity Bond (PAB) Volume Cap to TDHCA. As of March 31, 2025, approximately 61% of those dollars have been utilized to fund below-market rate mortgage loans and Mortgage Credit Certificates to First-Time Home Buyers within your jurisdiction.  Demand for these programs has increased significantly over the past year. <br><br>Attached please find a PowerPoint presentation detailing the 2026 PAB Volume Cap Assignment Program.  This document is intended to outline how local HFCs benefit from participation in the program, as well as the process, timelines and required documents.  TDHCA has reviewed qualified activity within the TCHFC’s jurisdiction and has determined that demand is sufficient to support a 2026 Volume Cap assignment of up to $10,000,000.  As in previous years, TDHCA will pay the BRB application fee and the BRB 35-Day Filing Fee on behalf of the HFC.