A Message from TAAHP's 2020-2021 President

Janine Sisak, TAAHP 2020-2021 President

In my 20 years as a part of this industry, I do not remember a year quite as dramatic as the one we just had. Between the pandemic and Winter Storm Uri, TAAHP and our members experienced a very challenging year. As many of us are acutely aware, everything took longer, including transaction closings, construction, and lease-ups. Not only are these time delays costly for developers, lenders, and investors—but they have directly affected the supply of affordable housing, which is needed now more than ever as we recover from the pandemic-induced economic downturn. In response to this situation, TAAHP did its best to advocate for the industry— both at the Capitol during the 87th Legislative Session and with the Texas Department of Housing and Community Affairs (TDHCA) regarding regulatory matters. In August 2020, TAAHP requested that TDHCA grant an automatic placed-in-service extension for all 2018 9% awardees who had experienced supply chain issues or labor shortages that delayed construction. TDHCA granted this request, giving developers an additional six months to complete construction. The Governor’s Office also removed the “Readiness to Proceed” category in the 2021 Qualified Allocation Plan in response to TAAHP’s request. In February 2021, after Winter Storm Uri caused many of our members to live without power or internet for days, TDHCA worked with the Governor’s Office to grant a much needed one-week extension to the 9% tax credit application deadline, again in response to requests from TAAHP and other industry stakeholders. More recently, TAAHP has been engaged with TDHCA staff to develop relief from unprecedented construction cost increases in the form of a revised multifamily direct loan program and a possible tax credit increase policy, like the one that TDHCA approved in 2008. Results of those discussions are still pending but rest assured that TAAHP is actively pursuing all options to help developers close their transactions and see them to fruition. During the 87th Legislative Session, TAAHP’s Government Affairs and Legislative Advisory Committee members

met with more than 42 Texas House Representatives and Senators and testified at ten hearings to advocate for our legislative priorities. While a TAAHPsponsored bill did not ultimately survive the legislative process, we were able to deliver the message consistently and repeatedly throughout the Capitol that affordable housing is essential to Texas and the economic recovery. In doing so, we have also established TAAHP as the primary resource on affordable housing issues in the state. With the help of our lobby team, we were also able to prevent Janine Sisak legislation that would have negatively

TAAHP 2020-2021 President impacted our industry from becoming law. In sum, given that the 87th legislative session was one of the most difficult in history due to the pandemic, the state-wide energy crisis, and the ongoing culture wars—expectations for passing new legislation were low, but we were still successful in defending our industry and educating key legislators. Looking forward, I expect TAAHP to shift its advocacy efforts to the federal policy level, specifically with the goal of seeing the renewed Affordable Housing Credit Improvement Act (AHCIA) become the law of the land. In 2020, TAAHP’s federal advocacy efforts helped with the passage of the fixed 4% applicable percentage, which was a major win for our industry. Now, it is time to renew our support for other key provisions, including the proposed increase in the annual housing credit allocation, the Community Reinvestment Act and promoting housing as critical component of infrastructure. I am thankful for the support I have received from fellow board members, our membership, and staff over the last year as we have led this organization during the most challenging times we have known. We know that uncertainty will continue. But in uncertain times, we must work together as an industry, for the good of the industry, and for the good of the people we house, especially considering the growing economic and racial inequities in our country. We are only just starting our work in this regard, but we are well positioned to take it on because we are indeed stronger together.