Title
Consider/Discuss/Act on a Resolution Approving Assignment of Private Activity Bond Authority to the Texas Department of Housing and Community Affairs; and Containing Other Provisions Relating to the Subject
Summary
COUNCIL GOAL: Enhance the Quality of Life
MEETING DATE: June 7, 2022
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Janay Tieken, Director of Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution Authorizing Assignment of Private Activity Bond Authority to the Texas Department of Housing and Community Affairs; and Containing Other Provisions Relating to the Subject
ITEM SUMMARY:
• MHFC would apply for Private Activity Bonds (PAB) volume cap, PABs are issued, and the MHFC will assign that PAB to TDHCA to administer tax-exempt bonds/MCCs on the MHFC behalf.
• TDHCA distributes the funds as below-market mortgages or MCCs to qualified homebuyers through their network of approved lenders.
• TDHCA manages all reporting and compliance.
• The MHFC is not required to qualify homebuyers, service loans or do anything beyond applying for PAB cap for $500 and executing an agreement with TDHCA.
• Borrowers who use this program have access to TDHCAs down payment assistance program (DPA)
• MHFC can also fund additional DPA.
• The program will be used for 1st time homebuyers
BACKGROUND INFORMATION:
• The MHFC has offered the MCC program in the past and it was underutilized. Partnering with TDHCA will allow to MHFC to assist more homebuyers.
FINANCIAL SUMMARY:
• The MHFC will receive a to be determined annual admin fee based upon production of MHFC loans.
BOARD OR COMMISSION RECOMMENDATION:
• MHFC Board approved at the April 8, 2022, board meeting