On December 11, the TDHCA Board approved $13.3 million in State Housing Tax Credits for eight 9% HTC developments, marking the program’s second round of awards since TAAHP helped establish it during the 88th Legislative Session in 2023. With $17.6 million in eligible requests competing for a $13.3 million ceiling, the program was once again oversubscribed—highlighting strong demand and raising questions about whether the current annual cap is sufficient to meet statewide financing needs.
Because requests exceeded available credits, TDHCA used the statutory prioritization metric in 10 TAC §11.1008, which ranks applications by the number of additional 30% AMI units created relative to the requested credit amount. Awards were made in order of the lowest credit cost per additional deeply affordable unit until the ceiling was fully allocated. In total, the eight awardees committed to 74 new 30% AMI units, converting units originally proposed at higher income bands to serve extremely low-income households.
Board members also clarified that while the total award amount is $13.3 million, the SHTC functions similarly to the federal HTC and is claimed over ten years—resulting in approximately $1.33 million per year in statewide authority for 9% developments.
Because these awards supplement existing 9% deals, each application will move through the standard material amendment process. The Board emphasized that its action approves only the conditional allocation of SHTCs; any additional amendments identified in underwriting will return separately.
Created in 2023 with strong support from TAAHP, the SHTC program provides an annual $25 million statewide credit ceiling split between 4% and 9% developments. With the second round now awarded, the program continues to demonstrate strong utilization, increased competitiveness, and emerging policy conversations about whether its annual limits and prioritization framework should be revisited in future sessions.
