Public Facilities Corporation Application

Are you a developer or project sponsor seeking tax exemption for an affordable housing development in Travis County? The Travis County Facilities Corporation (TCFC) is now accepting applications for PFC project approval, as required by recent state legislation. Our team will review your application and work with you to ensure all requirements are met, including income and rent restrictions, along with fair housing policies. Submit your PFC application today and take the first step toward increasing access to quality affordable housing in Travis County.

Workforce Housing

Workforce housing is tailored to serve the needs of essential middle-income workers who are often priced out of the housing markets where they serve. This initiative focuses on developing housing that is affordable for individuals earning between 60% to 120% of the Area Median Income (AMI). We offer developers opportunities to create mixed-income communities that are close to employment hubs, reducing commute times and improving quality of life. By partnering with us, developers gain access to a variety of incentives such as expedited permitting, potential zoning allowances, and possible tax abatements, all designed to ease the development process while meeting critical housing demands in Travis County.

4% Tax Credit

The 4% Low-Income Housing Tax Credit (LIHTC) program is a vital federal resource for the creation and preservation of affordable housing for low-income households, typically those earning no more than 60% of the AMI. Developers can automatically receive these credits when they utilize tax-exempt bonds to finance at least 50% of their project costs. The 4% credits provide a long-term commitment to affordability through a reduction in federal tax liability, making them a powerful tool for subsidizing project development costs. Compliance with regulatory requirements, including rent limitations and tenant income certifications, is mandatory to maintain the tax credit benefit. Engage with our team to navigate the complexities of incorporating 4% LIHTC into your development plan in Travis County, and bring affordable living spaces to fruition.

Standard Terms

Below are the standard terms set by the TCFC Board of Directors that developers must agree to in order to be eligible for a partnership with TCFC, regardless of whether the property deal is Workforce or 4% LIHTC.

Name
Typical Terms
Lease structure
  • PFC owns fee to entire project.
  • Lease to for-profit Developer.
  • Developer raises debt and equity.
  • PFC will retain fee of entire project at end of lease term.
Lease term
  • Lease 75 years.
Annual rent amount
  • 15% of annual tax savings initially using 80% of project costs to calculate (may be set as fixed rent)
  • If fixed rent, reset rent on first sale based on 15% of 80% of sales price tax rate.
  • Increase by 3%/year.
Structuring Fee
  • $250,000 at closing.
Sales Commission
  • 15% of return after debt, equity and preferred return are repaid on 1st capital event; then 2% of gross on all subsequent sales.
Sales Tax Saving Fee
  • $1500/door one-time payment
Developer Fee Sharing
  • PFC receives 15% of Developer Fee.
AMI Set asides
  • 30% of units must be reserved for 80% AMI adjusted for family size and
  • 20% of units reserved for 60% AMI adjusted to family size.
Affordability Period
  • 40 years
Loss of Tax Status Event
  • If it occurs before 40th year, PFC conveys entire project.
  • After 40th year, PFC to be paid termination fee.
Maintenance Requirement
  • Must be maintained as Class A apartment.
  • Physical needs assessment every 7 years and upon sale
Early Termination
  • Lease can be terminated 40 years upon paying a sliding scale fee based on when the termination is. The fee for a termination in year 40 is 7% of the FMV and it goes up to 32% by year 60.

Submitting an Application

Workforce Housing

To initiate the approval process, first complete the Acknowledgement of Standard Terms with TCFC. Then, submit the County's PFC Application at least 30 days prior to your desired Travis County Commissioners Court date. Our team will review your submission and work with you to ensure all requirements are met. You'll also need to fill out our term sheet template below, for approval by the board.

1

Acknowledgement of Standard Terms →

The first step in submitting an application for a property to TCFC is to sign to our acknowledgement of standard terms.
2

Submit County Application →

Once you've signed our standard terms sheet, you'll need to complete an application with Travis County and request a court date.
3

Wait for Approval

TCFC will receive your application, review it, and if approved, will contact you regarding next steps.

4% Tax Credit

To initiate the approval process, first complete the Acknowledgement of Standard Terms with TCFC. Then, submit Request for a Resolution of No Objection (“RONO”) with Travis County. Our team will review your submission and work with you to ensure all requirements are met. You'll also need to fill out our term sheet template below, for approval by the board.

1

Acknowledgement of Standard Terms →

The first step in submitting an application for a property to TCFC is to sign to our acknowledgement of standard terms.
2

Request a Resolution of No Objection →

This resolution indicates that the county does not have any objections to the proposed housing project and is required.
3

Wait for Approval

TCFC will receive your application, review it, and if approved, will contact you regarding next steps.

Term Sheet Template

In addition to the steps outlined above, you'll need to prepare a term sheet for your project for approval by TCFC's board, using the template below. This outlines our standard terms in greater detail, and will also contain relevant documents outlining the project, its details, location, amenities, and more.

TCFC Term Sheet Template

→

This is a MS Word template of the term sheet that you, as a developer, will need to fill out for your project. Highlighted sections need to be filled out, and relevant property documents (mentioned within) will need to be attached. This document may be revised as talks progress, and will only be signed upon final approval by TCFC's board.

Questions?

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We are an Equal Housing Opportunity Provider. We provide housing without discrimination on the basis of race, color, religion, sex, physical or mental handicap, familial status, national origin, or other protected class.

This site was created by Kevin Bryniak