Denton County is assigning a $40 million private activity bond volume-cap allocation to TDHCA, a move officials say could help about 132 households buy homes across the county, without borrowing a single extra dollar to do it. County commissioners have authorized the Denton County Housing Finance Corporation to hand off its 2026 private activity bond allocation to the Texas Department of Housing and Community Affairs.
The transfer, announced in an Oct. 20 news release, sends the bond cap — an annual federal limit on tax-exempt private activity bonds — from the county's housing finance arm to TDHCA, which will take over lending and administration duties going forward, according to Cross Timbers Gazette. Through TDHCA's existing homeownership program, the money is projected to generate nearly $1.4 million in down payment assistance for eligible buyers, per the Denton County announcement. Qualified buyers would also gain access to low-interest, 30-year mortgages through the state program.
Who Handles the Money Now
With TDHCA managing program administration and compliance, the county's housing finance corporation steps back from day-to-day lending. The arrangement isn't without upside for the county, though — the housing finance corporation is still set to collect annual fee revenue from the bond, money that officials say will go toward supporting future housing projects.
This isn't the program's first run at helping Denton County residents. The report notes that since January 2025, the effort has already supported 49 mortgages totaling roughly $15 million across the county, alongside this year's new allocation.
Officials Frame It as Debt-Free Relief
Denton County Judge Andy Eads cast the partnership as a way to ease pressure on local workers without straining county finances. “Help more working families achieve the dream of homeownership while supporting our local workforce, all without taking on additional County debt,” Eads said, according to the Gazette's reporting.
Commissioner Kevin Falconer zeroed in on the obstacle that keeps many renters from buying: the upfront cash needed for a down payment. “That can be a significant hurdle for families, and this program can help make homeownership more attainable,” Falconer said.
The county's move comes as Community Impact Newspaper also reported on the resolution's passage, noting the bond draws from the housing finance corporation's end-of-year bond cap.
