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SB 1989 seeks to allow the governing board of the Texas Department of Housing and Community Affairs (TDHCA) the authority to establish basic underwriting standards for housing tax credits at time of cost certification. They may determine cost certification by using the actual net operating income, adjusted for stabilization of rents and extraordinary lease-up expenses and a maximum debt coverage ratio of 1.50 or higher as adopted by department rule.
The agency would be allowed to increase the maximum debt coverage ratio (DCR) to be used by
adoption of rule and certain types of transactions may be excepted from these criteria if adopted
SB 1989 would allow the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to develop basic standards necessary to maintain consistency in their underwriting process. This is within the proper role of the state and of that agency in particular. We support SB 1989.
Our support for this legislation does not connote support for all of the duties of TDHCA.