Build Now. Build Strong. Build Texas.
Texas, currently the nation’s second-most populous state and projected to be number one by 2045, is outpacing its affordable housing capacity. Rapid growth, rising costs, and few state or local funding tools leave Texas reliant on federal programs, constraining development, increasing housing burdens, and forcing affordable housing providers into complex, patchwork financing.
Primary Affordable Housing Finance & Funding Tools
Explore the primary sources of federal and limited state and local finance and funding resources for affordable housing development in Texas.
Federal Housing Tax Credit
Launched during the Reagan administration in 1986, the Federal Housing Tax Credit is the single most successful public-private partnership funding source that provides equity to developers to incentivize the development of affordable housing.
State Housing Tax Credit
In 2023, the Texas legislature passed a bill creating the new state housing tax credit — providing access to $25 Million annually to affordable housing developers alongside federal housing tax credits.
Private Activity Bonds
Commonly paired with 4% Low-Income Housing Tax Credits, PABs are tax-exempt bonds and are used to lower borrowing costs and attract private capital to finance privately owned affordable housing development in Texas.
U.S. HUD Funding Programs
HUD funding supports affordable housing by offering various financing programs for construction and permanent loan executions. These funds make development feasible, preserve affordability, and sustain day-to-day operations and services for eligible residents.
Debt Financing
Banks supply construction and permanent loans, bridge and gap financing, tax-credit lending, and credit enhancements. Their CRA-driven products lower costs, fill timing gaps, and leverage public subsidies and private equity to make development financially viable.
Local Government Incentives
From distribution of federal gap funding dollars and local bond financing to development incentives and property tax abatement, some local government entities offer varying incentives to work toward local affordable housing supply goals.
Upcoming TAAHP Events
TAAHP offers a variety of events and education opportunities throughout the year for industry professionals, policy makers and stakeholders to stay up-to-date with important information impacting the affordable housing industry in Texas.
Access a Directory of Affordable Housing Finance Professionals
Become a TAAHP Member Today!