History and Accomplishments

History

TSAHC initially came into existence to administer an innovative plan to finance low income housing for residents of colonias. Because of the importance of affordable, safe and decent housing to the safety, welfare, and public health of Texans, TSAHC continued to expand affordable housing efforts through its participation in several programs - primarily grant administration, loan origination, and loan servicing. These programs helped establish TSAHC as a self-sustaining organization and provided resources to build the key programs, both multifamily and single family, administered by the corporation today.

Single Family Programs
Two TSAHC single family programs were created through the actions of the 77th and 78th legislature to acknowledge Texas professional educators, firefighters, and police officers for their commitment and dedication to their profession and to help them achieve the dream of homeownership.  Approximately $50 million ($25 million for each program) is made available annually for these programs, from an allocated portion of the allowable private activity bond (PAB) volume cap. 

These programs provide below market 30-year fixed rate mortgage loans to eligible first-time homebuyers through a network of participating lenders across the state. In addition to the incredibly low interest rate, these programs offer down payment and closing cost assistance, up to 5% of the loan amount, in the form of a grant. The programs are available statewide on a first come, first-served basis, to first-time homebuyers who wish to purchase a newly constructed or existing home within the state of Texas .   

TSAHC worked with the 79th Legislature in expanding the eligibility requirements to include not only firefighters and police officers, but any certified or licensed full-time paid, firefighter, peace officer, county jailer, public security officer, and corrections officer, significantly increasing the eligible pool of borrowers. TSAHC is currently structuring the 2006 allocated $25 million for the Professional Educators Program.

Multifamily
TSAHC started its multifamily programs with a Multifamily Direct Lending Program which provided permanent financing for the purpose of increasing and preserving the stock of affordable multifamily housing units throughout the state. This financing was facilitated through relationships with real estate investment companies that invest in affordable multifamily housing, namely, The Community Development Trust in New York and the Federal Home Loan Bank of Dallas. So far these partnerships have resulted in financed developments in Wichita Falls, Odessa, Big Spring, Brady, and Stephenville.

In April 2001, TSAHC 's 501(c)(3) bond program was created for the development and rehabilitation of affordable multifamily developments. Since the program began, TSAHC has issued $487 million in tax-exempt mortgage revenue bonds to finance more than 7,700 multifamily affordable housing units, and over 10,000 units overall. The bonds are paid from rental income generated by multifamily rental units financed under our program, without any obligation by the state to repay the bonds.

In the 78th legislature, TSAHC was given direct issuing authority over 10 percent of the multifamily private activity bond (PAB) cap. The PAB Program is different from the 501(c)(3) Bond Program in that multifamily financing has historically been largely driven by developers' preferences. With the PAB Program, TSAHC has designated certain geographic areas as targeted areas within the state and gives priority to regions where bond financing has traditionally not been awarded.

In 2004, the Corporation issued $14,260,000 in tax exempt bond financing along with a $500,000 subordinate loan to construct a 250-unit affordable multifamily development in San Antonio know as Marshall Meadows Apartments.

Recent Accomplishments

For more information on TSAHC 's programs, click here.