State housing agency awards nearly $80 million in housing tax credits, represents 4,024 new and rehabbed units across Texas

(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) has awarded nearly $80 million in housing tax awards in July that will help finance the development or rehabilitation of 61 rental properties throughout the state, offering reduced rents and increased housing options throughout the state. Awards provided through the 2022 Competitive (9%) Housing Tax Credit (HTC) Program allocation will help developers construct or rehabilitate a total of 4,024 units offering rents affordable to households earning up to 80 percent of the area median family income.

“We are grateful for the Texas Department of Housing and Community Affairs’ continued efforts to provide Texans across the state with greater access to affordable housing options,” said Governor Abbott. “As the Texas economy continues to grow and thrive with new businesses and people moving to the state, more hardworking Texans are in need of affordable homes for themselves and their families. TDHCA’s housing tax credit program is a vital resource to build affordable housing for Texans across the state. I look forward to continuing to work with TDHCA to expand housing options and create brighter futures for all Texans.”

“With today’s awards, TDHCA continues its efforts to provide high-quality housing for Texans,” explained Bobby Wilkinson. “The housing tax credit programs serve as essential financial tools to aid in the development and construction of affordable housing, while also contributing to Texas’ strong business and economic environments.”

This year’s Competitive 9% HTCs are expected to help finance the building of 41 high quality, new properties with a total of 2,970 units, and the rehabilitation of 20 properties offering 1,054 units to income-eligible households across the state. The at-risk set aside, totaling more than $11.8 million for the 2022 cycle, is used for the rehabilitation or reconstruction of aging housing developments that could soon lose rental subsidies provided to their low-income residents. Financing will allow applicants to develop 28 properties housing elderly (age 55 or older), 32 properties targeted for General Population, and one property with Supportive Services.

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 $800 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.