The Texas Bootstrap Loan Program is a significant program for many Habitat affiliates across Texas. They are proposing some new rule changes. If you use Bootstrap, you need to review these changes and see if they impact your work. If they do, then let us know, but, most importantly, let TDHCA know. I’ve highlighted a few of the changes that some affiliates have questioned below in red. Here is an overview of the changes:


TDHCA staff has received TDHCA Board approval to propose changes to the Texas Bootstrap Loan Program Rule, also called the “Bootstrap Rule” (formally referred to as 10 TAC Chapter 24).

The rule, with proposed amendments, is attached and is available on the Bootstrap Program page and in the Texas Register issue dated August 21.  To understand the changes, please note that new text is underlined and

[old text to be deleted is in brackets].

Please review the proposed changes to the Bootstrap rule and give TDHCA your comments over the next 30 days.  The public comment period began Friday, August 21, 2015, and ends at 5PM, Friday, September 21, 2015.  You may mail hard copy letters or email your comments to the addresses provided in the attachment

A summary of the changes are:

  • 24.1 Purpose.  Adds additional chapters of the Texas Administrative Code because they are relevant to program administration.
  • 24.2 Definitions.  Adds additional chapters of the Texas Administrative Code because they contain definitions used in this rule.  Adds the definition for Capital Recovery Fee because loans that include waivers of these fees will be prioritized. 
  • 24.6 Prohibited Activities.  Clarifies that loan servicing fees are an ineligible expense.
  • 24.7 Distribution of Funds.  Removes limitations on benchmark extensions in the rule, but this may be placed in Notices of Funding Availability and/or contracts.
  • 24.7(c) Loan Priority. Adds this new section to clarify how the Department will prioritize certain loans.  Prioritized loans are for: 1) those that serve households with income below $17,500; and 2) situations in which local fees are waived to promote more efficient use of funds.
  • 24.8 Criteria for Funding.  Provides clearer language on the reservation process and properly uses defined terms.
  • 24.9 Program Administration.  Specifies the requalification process for Owner-Builder Applicants and properly uses defined terms. 
  • 24.9(l)(1) Loan Program Requirements. Amended to better protect the Department’s investment by increasing the difference in the leveraged loan amount from $1,000 to $10,000 in the instances when the Department subordinates its lien. 
  • 24.9(n) Forgivable Loans. Adds section to include loan term limits for Forgivable Loans.
  • 24.10(2) Owner-Builder Qualifications.  Adds sections on Eligibility Income and Qualifying Income to clarify how the Department calculates household income and debt-to-income ratio.
  • 24.10(3) Owner-Builder Qualifications.  Regarding unacceptable credit, extends the look-back period for any account placed for collection, profit and loss, or charge off from 12 months prior to date of loan application to 24 months prior to date of loan application.


Written comments may be mailed to the Texas Department of Housing and Community Affairs, Attention: Raul Gonzales, Bootstrap Rule Comments, P.O. Box 13941, Austin, Texas 78711-3941; emailed to; or faxed to (512) 475-1162.