Texas Department of Housing and Community Affairs

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Texas Department of Housing and Community Affairs

Issuer Type: Housing

Bond Ratings

1 of 3

Single Family Mortgage Revenue Bonds - Senior Lien

Moody's
Aaa
S&P
AA+

Residential Mortgage Revenue Bonds

Moody's
Aaa
S&P
AA+

Single Family Mortgage Revenue Bonds - Junior Lien

Moody's
Aa1
S&P
AA+

Welcome to Our Investor Relations Site

On behalf of the Texas Department of Housing and Community Affairs, I would like to welcome you to our new investor relations website. We appreciate your interest and investment in bonds issued by TDHCA, as it allows the Department to make critical investments in affordable housing throughout Texas.  We are committed to maintaining our strong bond ratings, and to being as transparent as possible with the investor community and public at large.

We hope you find this website useful.  Please do not hesitate to contact our office with suggestions for how we can improve. Thank you for your interest in our bond programs.

Monica Galuski, Director of Bond Finance and Chief Investment Officer

News & Highlights

September 8, 2021

News
Addressing affordability no easy task in Austin

During last week’s speech on the state of the city, Mayor Steve Adler identified issues the city has been grappling with, including defeating Covid and homelessness. He also pointed out the next big issues the city must tackle in order to allow Austinites to continue to live and thrive here. The top issue on the list? Affordability.

Adler provided a lengthy fact sheet on affordability designed to demonstrate that, despite the pandemic, Austin remains one of the best places to live in the country in terms of employment.

According to the mayor’s data, Austin has the lowest unemployment rate among the 25 largest cities in the U.S. In July that rate was 4.2 percent, as compared to a high of 12.1 percent in 2020. For the state of Texas as a whole, the rate in 2020 was 12.9 percent, falling to 6.7 percent earlier this summer.

A report from the Austin Chamber of Commerce was even rosier, stating that, on a seasonally adjusted basis, Austin’s July unemployment rate was 4.0 percent, down from 4.4 percent in June.

“Among Texas’ other major metros, Dallas and San Antonio have the next lowest seasonally adjusted unemployment rate, 5.0 percent in July, while Fort Worth is at 5.2 percent, and Houston’s rate is 6.5 percent,” the chamber reports, using data produced by the Federal Reserve Bank of Dallas.

The mayor’s memo on affordability states that Austin has added jobs in 14 of the last 15 months and “regained all but 300 of spring 2020’s pandemic-related job losses.”

Adler argues that Austin has the “the second-best-performing major job market since the beginning of the pandemic.”

“As of July, more than 16,500 jobs had been announced from roughly 60 companies moving to the region and nearly 70 expansions of companies already in the Austin area. This is yet another reflection of how much is going well here and how desirable a city we are. We’ve attracted new, clean manufacturing that will bring much-needed middle-skill jobs (jobs that don’t require a degree) to a city where that is our most significant employment need,” he continued.

But having the jobs and providing the people with the skills to do the jobs are two different things. One thing the city did was provide funding for Workforce Solutions, which has experienced a tenfold demand for remote workforce training and enrolled more people in the first four months of 2021 than it typically would have in an entire year, according to the mayor. Still, it’s a slow process. Over the past year, 574 people have enrolled in the program, with 209 completing the training so far. Of those, 112 have gotten local jobs, according to Workforce Solutions.

Adler likes to compare Austin with Denver and Seattle. Denver’s rate of unemployment was 6.7 percent in June, while Seattle’s was 4.5 percent.

However, according to the website MoneyGeek.com, Austin ranks 18th in terms of job opportunities and wages. The rankings there go beyond unemployment rates and take into account taxes and cost of living. Salt Lake City, Utah, and Birmingham, Alabama, topped its list of best cities for job seekers, taking into account overall job growth, competition for jobs and housing affordability.

Dallas-Fort Worth-Arlington was ranked 17th, beating Austin by less than 2 points overall. MoneyGeek gave Austin 72.6 points, compared with DFW at 74.5 points. Denver and Seattle – the mayor’s two points of comparison – were ranked considerably lower. Seattle came in at 28 and Denver at 29. Houston was ranked at 45, Los Angeles-Long Beach at 50 and New York at 51.

The website found that cities that are major entertainment hubs, including New York City, Los Angeles, Las Vegas and Chicago, fell to the bottom of the list. “However, with the exception of Las Vegas, many of the lower-ranked cities are in high-rent, high-tax areas, including the city that MoneyGeek identified as the worst city for job seekers in 2021: Hartford, Connecticut. In contrast, the top cities – Salt Lake City, Birmingham, Indianapolis and Nashville – are in areas with a lower tax burden and lower living costs.”

Adler, like a lot of long-term Austinites, remembers a time when Austin was the most affordable big city in Texas. Austin’s affordability problem, he notes, is very much related to housing costs.

According to data from RentCafe, the average monthly rent for an Austin apartment is $1,539 a month for an 865-square-foot home. That compares with $1,763 for an 832-square-foot apartment in Denver and $2,234 a month in Seattle for a space that is just 692 square feet.

However, in Nashville that number is $1,502 for an 888-square-foot apartment, while in Salt Lake City the average rent is $1,353 for an 832-square-foot space. The rental price in Nashville has increased by 6 percent over the past year, while the average rent in Salt Lake City has risen by 9 percent over the past year, just like Austin’s. While the rent in Seattle remains exceptionally high, the price has fallen by 4 percent over the past year, according to data from RentCafe.

The city of Austin assisted 5,452 households in 2020 through the emergency rent relief program, which distributed more than $37 million in assistance. The mayor points out that the current City Council has worked to increase the city’s housing supply by providing creative subsidies for affordable housing, including enhanced density bonuses. He said with voter approval of housing bonds, Council has approved more than 600 new units of permanent supportive housing, compared with just 60 in the first two years of its term.

Council also took action earlier this summer to help homeowners by increasing the homestead exemption from 10 percent to 20 percent of a home’s assessed value. According to city data, the typical median household will pay $141 per year less in property taxes than under the old formula.

While not directly related to the cost of housing, Austin has invested in the child care labor force that allows Austinites with young children to focus on their own jobs. Adler says Austin has distinguished itself from other Texas cities by providing $6 million in grants for day care facilities that offer services for families relying on child care subsidies.

The city also provided $100,000 in emergency relief grants for family-based child care providers. Adler believes that without the city’s rapid response to the child care emergency, many of the programs would have disappeared.

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September 7, 2021

News
Work underway on affordable housing units in far North Austin

Ohio-based developer NRP Group has started construction on a new multifamily complex that will add 275 units of affordable housing to far North Austin and Williamson County.

In a Sept. 7 news release, NRP Group announced it has broken ground on its project, The James on Grand Avenue, located at 15701 FM 1325, Austin. The project site is near Austin’s border with Round Rock in Williamson County.

According to the news release, The James on Grand Avenue will offer apartment units to residents earning up to 60% of the Austin-Round Rock metropolitan area median family income. For a one-person household, that means someone earning below $41,580 annually would qualify for a unit, according to recent figures from the U.S. Department of Housing and Urban Development.

“Population growth and housing demand in Austin has exploded these past several years as technology companies like Tesla, Apple and Samsung gravitate to the city. The need for more affordable housing accommodations for residents with moderate income profiles is extremely high,” said Jason Arechiga, senior vice president of development for the NRP Group, in the company’s news release.

The James on Grand Avenue will feature seven separate buildings with one- to four-bedroom units available for rent. Amenities at the development will include a pool, a fitness center, a children’s center and a playground, a community center and more. According to the Sept. 7 news release, the housing development will additionally offer wraparound services, such as financial literacy training, first-time homebuyer programs and after-school programming for children.

Leasing for units at The James on Grand Avenue is expected to begin August 2022, though final completion is not scheduled until June 2023.

The Capital Area Housing Finance Corp., which is made of representatives from 10 Central Texas counties, is partnering with the NRP Group on the project.

The project is utilizing housing revenue bonds and tax credits to help fund the development of the project, according to the Sept. 7 news release.

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September 7, 2021

News
Texas Rent Relief Program Hands Out $750 Million In Assistance For Nearly 125K Households

NORTH TEXAS (CBSDFW.COM) — On September 7 the Texas Department of Housing and Community Affairs (TDHCA) announced it had distributed more than $750 million in rental and utility assistance to more than 124,000 Texas households impacted by the COVID-19 pandemic.

Officials say there is another $34 million already committed to being paid in the next few days.

According to a report from the U.S. Department of the Treasury, Texas is the country’s leading state in both households served and program funds distributed.

“The Texas Rent Relief program has cleared major hurdles and our strong efforts at outreaching to all Texans have been effective, reaching 92% of Texas counties with relief funds,” said Bobby Wilkinson, TDHCA Executive Director. “We’ve also partnered with other statewide agencies and organizations such as the Texas Apartment Association and Public Utilities Commission to share information about available assistance and outreach resources to ensure those most at risk of eviction or utility disconnection get the help they need.”

Once the Texas Rent Relief Program begins processing an application for eligibility, the most significant delay is receiving any missing federally required documentation necessary to approve funding.

Some advice for applicants —

  • Ensure all email and phone contact information is correct, check spam email folders and/or voice messages and respond accordingly as Texas Rent Relief Program staff attempt to finalize applications for approval.

Tenants and landlords may check their Texas Rent Relief program application status here or by calling 833-989-7368. Landlords will only see the status of their tenant’s application once their application IDs are linked in the system.

The Texas Rent Relief Program is an opportunity to get up to 12 months of back due rent and even secure up to three months of future rent stability for tenants, as well as utility assistance. Landlords can get up to 15 months of rent paid through this program, but only if they don’t evict.

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