TDHCA Programs Overview
Most of the Department’s funds are administered to local residents in need through partnerships with:
- Cities and counties that receive no direct allocation of federal housing dollars (Non-Participating Jurisdictions)
- Nonprofit and community-based organizations
- Private developers
- Public Housing Authorities
If you or someone you know is in need of assistance, please visit Help for Texans.
The HOMEbuyer Assistance Program provides funds to eligible entities which offer down payment assistance for homebuyers earning up to 80 percent area median family income, and may help fund modifications to make home more accessible. This assistance is offered through TDHCA’s federally funded Texas HOME Program.
This is a self-help construction program to provide very low-income families an opportunity to help themselves through the form of sweat equity. Participants under this program are required to provide at least 65 percent of the labor necessary to build or rehabilitate the home. Nonprofit organizations can combine these funds with other sources; however, all combined loans cannot exceed $90,000 per unit. The program is administered through TDHCA's Colonia Self-help Centers and State Certified Owner-Builder Housing Programs across the state.
The program channels low interest rate mortgage money through participating Texas lending institutions to eligible families who are purchasing their first home, or to those who have not owned a home in the past three years. Although income limits may vary with each bond issue, the program is designed to serve very low- to moderate-income (30 to 115 percent of AMFI) Texas families.
The Texas Mortgage Credit Certificate Program allows qualified buyers to claim a credit of up to $2,000 against federal taxes based on a percentage of annual mortgage interest paid. It increases a family's disposable income by reducing its federal income tax obligation. The tax credit is valid for the term of the mortgage loan as long as the borrower occupies the property as their primary residence.
Texas Statewide Homebuyer Education Program (TSHEP) is designed to work with local nonprofit organizations to teach the principles and applications of comprehensive pre- and post purchase homebuyer education, and to certify participants as homebuyer education providers.
Home Affordability: Energy Efficiency
The Comprehensive Energy Assistance Program (CEAP) combines case management, education, and financial assistance to help very low- and extremely low-income consumers reduce their utility bills to an affordable level. Services include utility payment assistance, energy education and budget counseling.
The Weatherization Assistance Program (WAP) helps low-income Texans, particularly the elderly and persons with special needs, control energy costs to ensure a healthy and safe living environment. The program funds the installation of weatherization materials and provides energy conservation education.
Provides funds to eligible entities for accessibility modifications in rental and owner-occupied housing for persons with disabilities earning up to 80-percent area median family income. Offered through TDHCA’s state funded Housing Trust Fund Program.
The Homeowner Rehabilitation Assistance (HRA) Program provides funds to eligible entities for the rehabilitation or reconstruction of substandard homes owned and occupied for homeowners earning up to 80 percent area median family income. Offered through TDHCA’s federally funded Texas HOME Program.
Community Foreclosure Relief
The Neighborhood Stabilization Program provides funds to eligible entities for the acquisition and redevelopment of foreclosed, abandoned or vacant housing to create affordable housing; demolition of severely substandard housing; redevelop demolished or vacant properties; creation of land bank; and/or other related activities.
Single Family Development
The Department was given a legislative directive to establish SHC's in Cameron/Willacy, El Paso, Hidalgo, Starr, and Webb counties; two additional centers opened in Maverick and Val Verde County. SHC's provide on-site technical assistance to low and very low-income individuals / families on housing, and community development activities, infrastructure improvements, and outreach and education. Operation is carried out through a local nonprofit organization, local community action agency, or local housing authority that has demonstrated the ability to carry out the functions of a SHC.
The Contract for Deed Conversion Initiative is available to residents who are currently purchasing residential property within 150 miles of the Texas-Mexico border and reside in a colonia identified by the Texas Water Development Board or meet the Department's definition of a colonia are eligible to apply for conversion assistance. The Department is currently accepting applications from residents interested in converting their contract for deed into a traditional note and deed of trust.
Contract for Deed Conversion (CFDC) Program Assistance Grants are grants that support eligible nonprofits and units of local government in assisting eligible colonia households to convert their contracts for deeds to warranty deeds. Administrators receive grant assistance for organizing and supervising conversions and if needed, additional construction activities.
Provides funds to Community Housing Development Organizations (CHDOs) for the acquisition, rehabilitation, or reconstruction of single family housing for households earning up to 60 percent area median family income. Offered through TDHCA’s federally funded Texas HOME Program.
Rental Housing Development
Housing Tax Credit (HTC) Program
The Housing Tax Credit Program is the primary means of directing private capital toward the creation of affordable rental housing. Developers of low-income rental housing use the tax credit to offset a portion of their federal tax liability in exchange for the production of affordable rental housing. To qualify for the tax credit, either 20 percent or more of the project's units must be rent-restricted and occupied by individuals whose income is 50 percent or less of the median family income; or 40 percent or more of the units must be rent-restricted and occupied by individuals whose income is 60 percent or less of the median family income. 9% Competitive Housing Tax Credits | 4% Non-Competitive Housing Tax Credits
The Multifamily Mortgage Revenue Bond Program issues mortgage revenue bonds to finance loans for qualified nonprofit organizations and for-profit developers. In an effort to target low-income populations, properties financed are subject to unit set-aside restrictions for low-income tenants, such as rent limitations and other requirements set by TDHCA and its Governing Board. For example, 75 percent of all units created with mortgage revenue bonds must be occupied by households that are at 80 percent or below AMFI. In addition, five percent of the units are reserved for special-needs tenants.
Provides funds to eligible entities for the development or rehabilitation with or without acquisition of affordable multifamily rental housing to serve tenants earning up to 80 percent area median family income. Offered through TDHCA’s federally funded Texas HOME Program.
Provides funds to eligible entities to offer rental assistance for qualifying non-elderly persons with disabilities transitioning from institutions into the community.
The Statewide Housing Assistance Payments Program (Section 8) provides rental assistance subsidy vouchers to families earning less than 50 percent of area median family income (AMFI), the elderly, and persons with disabilities. The statewide program is designed specifically for needy families in small cities and rural communities served by similar local or regional programs.
Provides funds to eligible entities to offer rental assistance for up to 24 months; assistance includes security, utility deposits, which may be extended for up to 12 months, for tenants earning up to 80 percent area median family income. Offered through TDHCA’s federally funded Texas HOME Program.
Poverty and Homelessness Prevention
The Community Services Block Grant Program (CSBG) provides administrative support to a network of local Community Action Agencies (CAAs) that provide services to very low-income persons in all areas of the state. The funding helps provide such essential services as childcare; health and human services for children, families and the elderly; housing; and other poverty-related programs.
The ESG program funds provide grants to eligible entities that provide shelter and related services for homeless persons, as well as intervention services to persons threatened with homelessness. Activities eligible for funding include renovation of shelters for use as homeless shelters; assistance in obtaining permanent housing; medical and psychological counseling and supervision; and developing and implementation of homeless prevention activities.
The Homeless Housing and Service Program provides funds to eligible entities within the eight largest Texas cities with populations larger than 285,500 per¬sons (Arlington, Austin, Corpus Christi, Dallas, El Paso, Fort Worth, Houston, San Antonio) for services and housing activities, including construction, to prevent and alleviate homelessness. The funding must benefit homeless persons or families at or below 50 percent area median family income.
The Texas Department of Housing and Community Affairs (Department) will be the Texas governmental agency administering several significant programs under the Recovery Act: Prevention of Homelessness, Weatherization, Community Services Block Grant, Housing Tax Credit Assistance, Housing Tax Credit Exchange, and Neighborhood Stabilization Program. The Department, in administering these programs, will promote transparency and efficiency. Although the Department will, using Recovery Act funds, add resources to administer these programs, as the programs wind down the Department will return to normalized staffing levels.
Effective July 1, 2011, the CDBG Disaster Recovery Programs have transferred to the Texas General Land Office.