Texas builds more homes than any other state – yet it, like many others, cannot meet the current demand. There are numerous reasons for the gulf between output and need, and Texas is hardly alone in falling short. In fact, you would be hard-pressed to find a state that currently is meeting its housing needs, especially in the affordable category. However, there are reasons to be optimistic that new legislation and funding in the Lone Star State will help turn the tide.

As a general contractor that works in multiple states, we often see the same challenges arise time and again when it comes to affordable housing. From red tape to securing funding sources, affordable housing developers are challenged in numerous ways to get projects out of the ground. Below are some ways that Texas is helping to make it easier to build affordable, and how a general contractor can support this positive momentum.

$5.5 Billion in Government Grants for Affordable Housing: In May 2024, the federal government announced an injection of capital via $5.5 billion in grants supporting the development of affordable housing. Funded by more than 2,400 grants that will impact over 1,200 communities, the investment will help states like Texas build homes, support renters and homeowners, provide life-saving assistance to people experiencing homelessness, and other critical needs that stem for lack of housing security.

$50 million Choice Neighborhoods Implementation Grant from HUD: Recently, a monumental grant award of $50 million was designated to Houston’s Third Ward. This investment in a critical area of affordable housing came about due to high levels of collaboration between federal, local, and community stakeholders, and underscores the importance of a collaborative approach when building affordable communities.

Expanded Access to Housing Assistance for Veterans: In August, HUD introduced new measures to increase access to affordable housing for Texas Veterans. Of particular significance was the allocation of $20 million to 245 public housing agencies to support the HUD-VASH program. In addition, the income eligibility for HUD-VASH participants was increased to 80% of the Area Median Income (AMI), up from the previous threshold of 50% AMI.

With these significant gains in supporting affordable housing, it’s more important than ever for project teams to work collaboratively from the conception of the project to completion. Construction managers can help affordable housing developers develop more effective budgeting techniques to preserve precious funding; improve design drawings by working alongside the architect to avoid unforeseen and costly changes later on; and drive stronger accountability across the team to ensure every stakeholder has skin in the game to build towards the most successful project possible.

For more information, contact Mike Meyers, Vice President of Southwest Operations at 407-907-2044 or visit www.neigc.com