AUSTIN — Gov Greg Abbott announced that the Texas Department of Housing and Community Affairs (TDHCA) awarded over $99 million in housing tax credits that will help finance the development or rehabilitation of 63 rental properties, offering reduced rents and increased housing options for Texans across the state.
These awards will help developers construct or rehabilitate over 4,410 units offering rents affordable to households earning up to 80% of the area median family income.
“As our state continues to grow, we must ensure that Texans have access to affordable housing so they can thrive in our great state,” Abbott said.
“The over $99 million in housing tax credits is critical to improve and upgrade affordable housing units for Texans. Working with the Texas Department of Housing and Community Affairs, we will build a more affordable and prosperous Texas for generations,” he added.
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.
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 to help finance their property. The credits awarded may cover up to 70% of each property’s eligible development costs.
“The Housing Tax Credit Program is a key tool for creating new developments and preserving affordable housing in our communities,” said TDCHA Executive Director Bobby Wi l k i n s o n . “TDHCA is committed to bringing high quality, affordable housing to Texas residents.”
The award list is subject to change should any developments not be able to move forward.
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