The Texas Department of Housing and Community Affairs (TDHCA) has awarded $87.7 million in housing tax awards in July that will help finance the development or rehabilitation of 54 rental properties throughout the state, offering reduced rents and increased housing options throughout the state. Awards provided through the 2023 Competitive (9%) Housing Tax Credit (HTC) Program allocation will help developers construct or rehabilitate a total of 3,161 units offering rents affordable to households earning up to 80 percent of the area median family income.
“I thank TDHCA for working to ensure that Texans across the state have access to the best affordable housing options through the Housing Tax Credit Program,” said Governor Abbott. “These awards will help developers and housing agencies make much-needed improvements to affordable housing units and offer affordable rent prices to Texas families and Texans in need. Through programs like these, we can create an even brighter future with greater opportunities for all Texans.”
“The Housing Tax Credit Program serves as a crucial factor to making affordable housing available to hard working families, and our most vulnerable residents, such as senior citizens and people with disabilities,” said TDHCA Executive Director Bobby Wilkinson. “We understand market conditions are affecting overall costs, and we’ll continue to help developers navigate available options so they can continue delivering housing options for low-income families, while also contributing to Texas’ strong business and economic environments.”
This year’s Competitive 9% HTCs are expected to help finance the building of 37 high quality, new properties with a total of 2,153 units; the rehabilitation of 15 properties offering 911 units; and the adaptive reuse of two existing properties in Dallas and Abilene totaling 97 units for income-eligible households across the state. The at-risk set aside, totaling more than $16 million for the 2023 cycle, is used for the rehabilitation or reconstruction of aging housing developments that could soon lose rental subsidies provided to their low-income residents.
Investors purchasing credits allocated to developers may apply the credits toward their federal tax liability each year for 10 years on a dollar-for-dollar basis in exchange for their investment in the property; marking today’s awards an approximate value of $877 million over the 10-year term.
The Housing Tax Credit Program, authorized under the United States Internal Revenue Code, is the state’s primary means of directing private capital toward the development of affordable rental housing. Developers use proceeds from the sale of the credits as financing for their property. The credits announced today are designed to cover approximately 70 percent of each property’s eligible development costs.
Comparing the 2022 vs 2023 9% Housing Tax Credit Rounds
