The Texas Department of Housing and Community Affairs (TDHCA) is a state agency responsible for a variety of assistance programs that serve low-income Texans.
TDHCA was created in 1991 when the Texas Department of Community Affairs (TDCA) and the Texas Housing Agency (THA) were combined. The department is governed by a seven-member board, appointed by the governor with the advice and consent of the Texas Senate.
Programs
The department’s programs promote affordable rental housing, homeownership, homelessness prevention, and outreach to the homeless. TDHCA administers grants to local governments and non-profits to deliver these programs. Private investors and private lenders are also involved in several housing programs.
TDHCA’s major programs include the Low Income Housing Tax Credit (LIHTC) program, which is the state’s primary mechanism for creating affordable rental housing, and the Section 8 Housing Choice Voucher program, which assists low-income families with rental payments. The Texas Bootstrap Loan Program supports self-help housing construction, while the Weatherization Assistance Program helps low-income households reduce energy costs through energy-efficiency improvements.
The department also regulates the manufactured housing industry in Texas.
Funding
Most of the funding administered by the Texas Department of Housing and Community Affairs comes from mortgage revenue bond financing and refinancing, federal grants, and federal tax credits.
Funding sources include the United States Department of Housing and Urban Development, U.S. Treasury Department, U.S. Department of Health and Human Services, U.S. Department of Energy, and State of Texas general revenue funds.
Oversight and Accountability
TDHCA’s programs are subject to multiple layers of oversight. Federal agencies audit programs funded through federal dollars, while the Texas Sunset Advisory Commission periodically reviews the agency’s structure and performance. The department is also required to submit detailed reports to the Texas Legislature, ensuring transparency in the use of public funds.
Agency Structure
TDHCA belongs to the executive branch of state government and is overseen by a seven-member board appointed by the governor. The members hold office for staggered terms, with the terms of two or three members expiring every two years. Board members are not paid and may not hold another public office.
Management of the agency falls to an appointed executive director, who is assisted by several division directors and other executives. The department employs about 300 people and has an annual budget of about $250 million.
Historical Background
Before the merger that created TDHCA, the Texas Housing Agency was chiefly responsible for financing affordable housing developments, while the Department of Community Affairs administered social service block grants and community development funds. The consolidation in 1991 was intended to streamline the administration of federal funds and create a single agency to oversee housing and community assistance efforts.
