The Texas Department of Housing and Community Affairs (TDHCA) has awarded more than $95 million in housing tax credits to help “finance the development or rehabilitation of more than 60 rental properties, offering reduced rents and increased housing options for Texans throughout the state,” Governor Greg Abbott announced on Thursday, July 25.
Abbot estimates that the TDHCA’s Housing Tax Credit Program (HTC) will provide awards worth $955 million over a 10-year period, enabling developers to “construct or rehabilitate” over 4,400 units that offer affordable rent to households earning up to 80% of the median family income in their respective areas.
Abbott stated that the 9% HTCs will assist in financing the building of 45 “high-quality, new properties,” including the “adaptive reuse” of two existing properties with a total of 3,450 affordable apartments, as well as the “acquisition and rehabilitation” of 18 properties with 1,025 units.
“Texas continues to ensure that Texans across our great state have access to affordable housing options through the Housing Tax Credit Program,” Abbott said to the audience. “These prizes are critical for developers and housing agencies in Texas to enhance and upgrade affordable housing units while also offering competitive rent costs. I commend the Texas Department of Housing and Community Affairs for its persistent efforts to give Texans in need chances to care for their families and prosper. With programs like this, we will create a bigger and better Texas for future generations.”
“The Housing Tax Credit Program plays an important role in making affordable housing available to hardworking families, seniors, and people with disabilities,” stated TDHCA Executive Director Bobby Wilkinson. “Today’s awards are an example of how the public and private sectors can come together to create a positive and long-term impact in communities around the state, including the rehabilitation of properties at risk of losing their affordability.”
The United States Internal Revenue Code permits the Housing Tax Credit Program, which Abbott claims is Texas’ main method of “directing private capital towards the development of affordable rental housing.”
According to reports, developers use the proceeds from the sale of credits to help fund their properties. Abbott stated that the credits provided might cover up to 70% of each property’s qualified development expenditures.
The HTC application prizes referenced several properties in Central Texas, including:
- West Family Apartments, 625 E Tokio Road, West
- Bird Creek Senior Living, 3000 S. General Bruce Dr, Temple
- Westwood Apartments, 3001 Illinois Ave., Killeen
- Gatesville Crossing, 2909 S Hwy 36, Gatesville
