Governor Abbott Announces $87.7 Million In Housing Tax Credits
Governor Greg Abbott today announced that the Texas Department of Housing and Community Affairs (TDHCA) has awarded $87.7 million in housing tax credits to help finance the development or rehabilitation of 54 rental properties offering reduced rents and increased housing options for Texans throughout the state. Provided through the TDHCA Housing Tax Credit Program (HTC), these awards will help developers construct or rehabilitate more than 3,100 housing units and offer affordable rent to households earning up to 80% of the median family income in their respective areas.
"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 HTCs are expected to help finance the building of 37 high quality, new properties totaling 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, will be 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 eight properties housing elderly Texans (age 55 or older) and five properties targeted for the general population.
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. Today’s awards have an approximate value of $877 million over the 10-year term.