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Tarrant County HFC renews volume-cap assignment to TDHCA, approves delegation of bond authority
Summary
The board approved assigning $45 million of volume cap to the Texas Department of Housing and Community Affairs and delegated bond issuance authority to TDHCA; Hilltop Securities explained the program that has assigned $90 million since 2023 and has used about 60% to date. The measures passed unanimously.
The Tarrant County Housing Finance Corporation on June 11 approved a pair of related actions to continue a partnership with the Texas Department of Housing and Community Affairs (TDHCA).
Claire Lastrapes of Hilltop Securities outlined the program: since 2023 the HFC has assigned $90 million of federal volume cap to TDHCA so the state agency can issue single-family bonds for first-time buyers. "This is an assignment program where you assign your volume cap over to TDHCA ... and you receive a financial benefit of 4.75 basis points on any of the loans that are originated," Lastrapes said, explaining last year the HFC approved $45 million and the board was being asked to approve $45 million again this year.
Board members approved a resolution authorizing submission of a reservation or assignment with the Bond Review Board related to qualified mortgage bonds or mortgage credit certificates and separately approved delegation of issuance authority and an assignment agreement to TDHCA. Counsel and staff clarified lenders are not preselected; any participating mortgage lender may originate loans so long as loans are originated in Tarrant County and the HFC's fee applies only to loans originated locally. Lastrapes said TDHCA has used about 60% of the $90 million assigned since 2023 and that the assignment gives local HFCs access to statewide underwriting and marketing resources.
Both measures passed on unanimous votes. If TDHCA uses the assigned capacity, developers and lenders will originate loans under the state program; the HFC will receive the stated fee for loans originated in Tarrant County.
