Frequently Asked Questions

If you have questions not addressed below, please contact us at one of the following emails:

  • What is a land bank?

    A land bank is a public or community-owned entity created to acquire, manage, maintain, and repurpose vacant, abandoned, and foreclosed properties. TSAHC holds land and works with Local Partners to develop affordable housing.

  • 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/Home Buyers own the improvements. 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. Our loan products are best suited for construction or bridge loans on both smaller and large-scale projects. The tax-exempt bond program is best for larger developments and for developers with high levels of experience in affordable housing development.

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

    TSAHC offers smaller developers access to revolving lines of credit for affordable for-sale housing projects. Details about revolving lines of credit can be found on our Texas Housing Impact Fund website.

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

    TSAHC’s lending programs accept applications on an ongoing basis when funding is available. TSAHC posts announcements on our website and sends out email blasts to interested parties when new funding is available.

    Interested applicants should contact our staff before completing an application to determine if there is sufficient funding available. Here’s a link to book a meeting with staff: Book Meeting with TSAHC

  • 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, 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.

  • What are some frequently asked questions about the 2025 Bond Application cycle for the Multifamily Tax-Exempt Bond Program?
    1. Will Term Sheets and Equity LOIs be required with the application due 10/7 or can these be provided later?

      Copies of terms sheets, letters of intent or applications are only required from the bond purchaser or underwriter of the transaction.  We do not require these from the equity partner until the planned submission of the bond reservation. 
       
    2. If applying for 1 bond issuance for 2 properties, are letters of support required per project or per application?  (For example, 2 letters per project or just 2 letters per application)

      TSAHC’s policies state that two letters are required per Development. A project involving two properties is considered one Development and thus only two letters are necessary. However, both properties must be listed in the letters of support to fulfill this requirement. 
       
    3. Does the COVID-19 disaster relief declaration qualify projects for the Disaster Relief Targeted Housing Need? 

      No. TSAHC only considers counties identified in a Federal Emergency Management Agency disaster declaration where the declared disaster resulted in the loss or destruction of housing units. TSAHC does not consider extensions to disaster declarations, as was the case for the COVID-19 declaration. Also, TSAHC will only consider the time period 18-months after the initial declaration for eligibility.
       
    4. Can TSAHC get my project a reservation of volume cap in December 2024? 

      No. The federal allocation of private activity bond volume cap to each state occurs on January 1st of each year. The Texas Bond Review Board cannot issue reservations for volume cap prior to the new year.