Texas State Affordable Housing Corporation

Overview

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization established by the Texas Legislature to address the state’s housing challenges. While TSAHC operates independently and does not receive state-appropriated funding, it is subject to significant oversight from various state entities to ensure accountability and efficiency.

TSAHC’s primary mission is to provide housing assistance to individuals and families who may not qualify for conventional mortgage loans or rental housing. It focuses on serving low-income and moderate-income households, ensuring they have access to safe, quality, and affordable housing options. TSAHC plays a vital role in bridging the housing gap in Texas by offering innovative programs tailored to the specific needs of different communities.

Programs and Functions 

TSAHC administers several programs designed to improve access to affordable housing, support homeownership, and revitalize communities. These programs include:

• Home Buyer Assistance Programs: TSAHC provides down payment assistance and low-interest mortgage loans to first-time homebuyers, veterans, and essential workers, such as teachers, firefighters, police officers, and healthcare professionals.
• Home Repairs for Disabled and Low-Income Texans: The organization funds critical home repairs for very low-income Texans with disabilities, helping them maintain safe and accessible living conditions.
• Disaster Housing Assistance: TSAHC offers grants to nonprofit organizations that provide housing assistance to families affected by natural disasters, helping them rebuild and recover.
• Foreclosure Property Redevelopment: TSAHC partners with local nonprofit organizations to acquire foreclosed properties from financial institutions and redevelop them into affordable housing options for low-income families.
• Affordable Rental Housing Initiatives: The organization provides below-market rental housing in the Austin area and collaborates with developers to create additional affordable rental housing options across Texas.
• Support for Housing Developers: TSAHC offers flexible financing solutions to nonprofit and for-profit developers engaged in building and preserving affordable rental housing. This program helps ensure that more housing units are available to meet the needs of low-income families.

Funding 

TSAHC secures funding from multiple sources to sustain its operations and expand its impact. These sources include:

• Loan Programs and Revolving Funds: TSAHC utilizes revolving loan funds and other financing mechanisms to provide long-term sustainability for its affordable housing initiatives.
• Tax-Exempt Housing Bonds: TSAHC raises capital for its programs by issuing tax-exempt affordable housing bonds. These bonds are a crucial tool for funding homebuyer assistance programs and affordable rental housing projects.
• Private Donations and Investments: The organization receives financial contributions from private donors, philanthropic foundations, and financial institutions that support the mission of affordable housing development.
• Government and Corporate Grants: TSAHC applies for and receives grants from federal programs, local governments, and corporate entities that aim to promote housing stability and economic mobility.
• Property Donations and Redevelopment: TSAHC accepts donated properties, which are then redeveloped into affordable housing units for low-income families. This initiative helps revitalize communities and provide long-term housing solutions.

Structure and Oversight

TSAHC is governed by a five-member Board of Directors appointed by the Governor of Texas. These board members provide strategic direction and oversight, ensuring that TSAHC fulfills its mission efficiently and transparently.

Key oversight mechanisms include:

• Public and Stakeholder Engagement: TSAHC regularly collaborates with local governments, community organizations, and housing advocates to align its initiatives with the needs of Texas residents.
• Texas Bond Review Board and Texas Attorney General’s Office: All bonds issued by TSAHC must be reviewed and approved by these entities to ensure financial viability and compliance with state laws.
• State Auditor’s Office: TSAHC undergoes regular audits by the Texas State Auditor’s Office, which evaluates the corporation’s financial statements, internal controls, and overall performance.
• Sunset Advisory Commission: TSAHC is subject to periodic review by the Sunset Advisory Commission, a legislative body responsible for assessing the effectiveness and necessity of state agencies and organizations.