PILLAR: Vibrant
AGENDA DATE: November 10, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
A resolution to (1) authorize the Dallas Housing Finance Corporation (DHFC or Corporation) to delegate to the Texas Department of Housing and Community Affairs (TDHCA) its authority to issue Qualified Mortgage Revenue Bonds in an amount not to exceed $65,000,000.00 (the Bond Reservation), to be administered by TDHCA for the Texas Homebuyer Program; and (2) approve an assignment agreement between the DHFC and the TDHCA for the assignment of the Corporation’s Bond Reservation - Financing: No cost consideration to the City
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
The purpose of this agenda item is to consider and adopt a resolution authorizing (1) the DHFC to delegate to the TDHCA its authority to issue Qualified Mortgage Revenue Bonds (Bonds) in an amount not to exceed $65,000,000.00 for the purpose of obtaining funds to finance home mortgage loans for persons of low- and moderate-income that TDHCA will administer through the Texas Homebuyer Program (Program); and (2) an assignment agreement between the DHFC and TDHCA assigning the Corporation’s bond reservation to TDHCA. As with all bonds issued by the DHFC, the Bonds are non-recourse to both the City and the Corporation. They are not liabilities of the City.
The Program is administered by TDHCA and targeted at first-time homebuyers and veterans to provide below-market mortgages to Texans that include down payment assistance (DPA) available as either a forgivable or deferred second lien. Interest rates vary based on the type of DPA received, location of the home, and market conditions at the time of closing.
Different program options are offered to homebuyers seeking assistance in targeted or non-targeted areas. Targeted areas include qualified census tracts (QCT) and areas of chronic economic stress, and the Program allows for higher purchase price limits and higher homebuyer income limits in these areas as compared to the non-targeted areas. A QCT is a census tract with over 50% of the population at or below 60% area median income (AMI) or a poverty rate over 25%. The Program is designed to increase home values and median incomes of QCTs and areas of economic stress.
TDHCA sets the income and purchase limits for the Program. The 2026 income limits are as follows for the First-time homebuyer option:
Non-Targeted Area Income Limits:
1. 1- or 2-person households: 100% AMI ($121,100.00)
2. 3 or more persons: 115% AMI ($139,265.00)
Targeted Area Income Limits:
1. 1- or 2-person households: 120% AMI ($145,320.00)
2. 3 or more persons: 140% AMI ($169,540.00)
Non-Targeted Area Purchase Limits: $589,596.00
Targeted Area Purchase Limits: $720,817.00
DPA is also offered through the Program with the following terms for forgivable and deferred second liens:
1. Forgivable second lien is forgiven after 36 months and repayable if sold within 36 months.
2. Deferred second lien is repayable if or when home is sold.
3. Homebuyers must have a credit score of at least 620 and take an approved homeownership course.
As of October 13, 2026, the interest rates for the Program ranged from 6.625% to 8.875% depending on the targeted area, amount of down payment assistance provided, and whether the down payment assistance was deferred or forgivable. Additional information can be found at the following website: <https://thetexashomebuyerprogram.com/>.
For this program to continue operating in the City, the DHFC must apply for a private activity bond cap through the Texas Bond Review Board. Once all the documents are approved, funds will be distributed through TDHCA’s network of approved lenders. The DHFC does not have to provide any staff support or process any of the loan applications - this is all done through TDHCA. There is no significant risk to the City or DHFC, and no significant investment of Corporation staff resources for this program to operate, making it a highly effective and low-cost tool that can be added to the mission of providing home-ownership opportunities for first-time homebuyers and low- to moderate-income residents.
Staff recommend approval of this item as it furthers the goals of the Dallas Housing Resource Catalog by providing access to lower cost mortgages to families earning less than 140% of AMI.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 9, 2026, the Dallas Housing Finance Corporation authorized filing an application with the Texas Bond Review Board for a reservation of state ceiling to issue up to $65,000,000.00 in qualified mortgage revenue bonds. On the same date, the Board of Directors delegated to the Texas Department of Housing and Community Affairs the authority to act on its behalf under Chapter 394.032(e) of the Act, including authority related to financing, refinancing, acquiring, leasing, owning, improving, or disposing of home mortgages or residential developments and issuing bonds for those purposes.
The City Council was briefed by memorandum regarding this matter on November 6, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY26-27%20Memos/OHCE%20Upcoming%20Agenda%20Item%2026-2144A%20-%20DHFC%20Mortgage%20Bonds.pdf>
FISCAL INFORMATION
No cost consideration to the City.