Frequently Asked Questions

If you have questions not addressed below, please contact David Danenfelzer, Senior Director of Development Finance, at 512-477-3562.
 

• What is a land bank?

  A land bank is a public or community-owned entities created for a single purpose: to acquire, manage, maintain, and repurpose vacant, abandoned, and foreclosed properties. TSAHC holds land and works with Local Partners to develop it. 

• What is a land trust?

  A land trust is an agreement where TSAHC maintains ownership of land that is developed by a Local Partner. This partnership allows TSAHC to own the land, and the Local Partners owns improvements on it. This provides deeper levels of affordability at rental properties and the ability to sell homes at a more affordable price. 

• Who may apply to be a TSAHC Local Partner?

  You are eligible to apply to be a Local Partner if you have a history of providing housing services within the communities where TSAHC properties are acquired. Local Partners must meet the following minimum qualifications:

  1. Nonprofit entities must be an active nonprofit 501(c)(3) or (c)(4) corporation as recognized by the U.S. Internal Revenue Service, and registered as a domestic nonprofit corporation within the State of Texas;
  2. Provide financial audits or statements for a two year period that reflect the entity’s ability to manage funds appropriately;
  3. Have at least two years of experience in the planning, marketing, development or management of housing programs for moderate and low-income households; and 
  4. Demonstrate the ability to provide evidence of support from local government officials for their activities within the target community.
• What types of financing does TSAHC offer for Multifamily affordable housing developments?

  TSAHC currently offers several financing options for multifamily affordable housing developments including loans and tax-exempt bonds. 

• What types of financing does TSAHC offer for Single-Family affordable housing development?

  TSAHC offers lines of credit for the acquisition of land and construction of new homes, as well as for the acquisition and rehabilitation of existing homes.  Details about these programs can be found through the links below:

  Texas Housing Impact Fund

  Affordable Communities of Texas (ACT)

• What is the Texas Housing Impact Fund?

  The Texas Housing Impact Fund, administered by the Texas State Affordable Housing Corporation, offers financing for the development, acquisition, or rehabilitation of affordable rental or homeownership projects across Texas.Through the Texas Housing Impact Fund, TSAHC provides short and long-term loans to loans to developers seeking to build affordable housing, with an emphasis on empowering local nonprofit builders. Our loan products provide competitive rates and can be combined with other financing products to give developers the flexibility they need to create sustainable housing in Texas. 

  For more information, click here.

• When are awards made and how do I apply for financing?

  TSAHC’s lending and tax-exempt bond programs accept applications on an ongoing basis. TSAHC will post an announcement on our website if funding is not available for any of our programs. Interested applicants should contact our staff before completing an application in order to determine if there is sufficient funding available. Our application materials, policies and term sheets are available online. 

• What are the primary differences between the 501(c)(3) bond program and the Private Activity Bond Program (PAB)?

  There are three primary differences between the 501(c)(3) Bond Program and the PAB Program.

  1. The PAB Program allows both for-profit and nonprofit entities to apply for financing, whereas the 501(c)(3) program requires the applicant to be organized as a 501(c)(3) nonprofit as defined under the Internal Revenue Code.
  2. The allocation for the PAB Program is limited by the Texas Legislature, whereas the 501(c)(3) Bond Program has no technical limit, but is limited at the discretion of TSAHC's Board of Directors.
  3. The Internal Revenue Code allows the combination of PAB with Low Income Housing Tax Credits (LIHTCs), whereas this is not allowable with 501(c)(3) bonds. 
• What are the benefits of utilizing TSAHC's Private Activity Bond (PAB) Program to finance a property?

  Unlike local issuers of PABs, TSAHC is not subject to the lottery process directed by the Texas Bond Review Board. This provides TSAHC with greater flexibility in the administration of the program. Unlike local issuers, TSAHC also has the ability to work statewide and on projects across several counties or cities.

• How does TSAHC have the authority to issue tax-exempt bonds?

  TSAHC is a public nonprofit corporation. The Texas Legislature has given TSAHC the authority, pursuant to §2306.553 of the Texas Government Code, to issue tax-exempt bonds for the purpose of financing affordable housing. 

• Does TSAHC offer Low Income Housing Tax Credits (LIHTC)?

  The LIHTC program may be used in conjunction with Private Activity Bonds that TSAHC issues; however, applications for LIHTC allocations must be made through the Texas Department of Housing and Community Affairs. The Internal Revenue Code does not allow LIHTCs to be used in conjunction with the 501(c)(3) bond program.

• If my application for financing does not get approval, will my application fees be refunded?

  No, any costs incurred in the application or development process are the sole responsibility of the applicant. TSAHC only collects fees for specific services provided and to make required deposits to our professional service providers. These fees are used to cover our costs for the services provided and are not refundable.