9% HTC Pre-Application Basics

The 9% Housing Tax Credit (HTC) application process has two parts: (1) a voluntary Pre-Application, and (2) a mandatory Application. The information below offers a basic overview of the Pre-Application process. For specific details regarding HTC Pre-Applications and Applications, please refer to the Qualified Allocation Plan (QAP)(PDF).

Purpose

• The purpose of the HTC Pre-Application is to enable Applicants interested in pursuing an award of housing tax credits to assess generally their competition in a given region or subregion.
• Based on an understanding of the potential competition, Applicants can make a better and more informed decision whether they wish to proceed to prepare and submit an Application.
• Submission of a pre-application affords applicants the opportunity to achieve additional points on the full application.

Pre-Application Content

• Location of the proposed development site along with evidence that the applicant owns the site or has a contract to purchase the land;
• Applicant's name, address, individual contact name, and phone number;
• Development name, address, city, and county;
• Statement that the Applicant is submitting an application to TDHCA and certifying to an understanding of the applicable rules;
• Development attributes, i.e., new construction, reconstruction, adaptive reuse, or rehabilitation;
• Approximate total number of units and approximate total number of low-income units;
• Self-score form indicating estimated score of the full Application based on several selection criteria.

Process

• Pre-Applications must be submitted to the Department by a defined deadline, which is usually in early January.
• A Pre-Application fee is required ($10 per unit)
• Only one Pre-Application may be submitted by an Applicant for each site.
• Department Pre-Application review is limited; not all issues of eligibility and threshold are reviewed.
  • Acceptance by staff of a Pre-Application does not ensure that an Applicant satisfies all Application eligibility, threshold or selection requirements.
  • Department rejection of a Pre-Application does not preclude an Applicant from submitting an Application.

Pre-Application Threshold Criteria

• Notification letters must be sent to all of the following individuals and entities in the area containing the development by e-mail, fax or mail with registered receipt return or similar tracking mechanism:
  • State Senator;
  • State Representative;
  • Mayor of municipality;
  • All city council members;
  • County judge;
  • All county commissioners;
  • School district superintendent;
  • School district board of trustees’ presiding officer;
  • Neighborhood organizations whose boundaries contain the development site;
• Each such notice must include, at a minimum, all of the following:
  • Applicant's name, address, individual contact name, phone number;
  • Development name, address, city, county;
  • Statement that the Applicant is submitting a request for HTCs with TDHCA;
  • Development attributes, i.e., new construction, reconstruction, adaptive reuse, or rehabilitation;
  • Development type, i.e., single family homes, duplex, apartments, townhomes, high-rise etc.; and
  • Approximate total number of units and approximate total number of low-income units.

Pre-Application Results

• TDHCA posts online by late January:
  • Pre-Application Log (a spreadsheet that reflects some content of each Pre-Application received by the Department)
  • Individually imaged Pre-Applications
• Only Pre-Applications which have satisfied all of the Pre-Application Threshold Criteria requirements will be eligible for Pre-Application points on the full Application.
• The scores of the Pre-Applications released on the Pre-Applications Submission Log do not represent a commitment on the part of the Department or its Board to allocate tax credits to any development and only represent the scores reflected in the Applicant’s self-score form.
• Inclusion of a development on the Pre-Applications Submission Log does not ensure Pre-Application points.

Typical Schedule