Texas Governor Greg Abbott made an announcement, as reported by his office, that the Texas Department of Housing and Community Affairs (TDHCA) has allocated over $95 million in housing tax credits. This substantial funding aims to finance the development or refurbishment of more than 60 rental facilities across the state, enhancing the availability of affordable housing options for Texans. These awards, totaling an approximate value of $955 million over a decade, will assist in the construction or rehabilitation of over 4,400 housing units for residents earning up to 80% of the median family income in their areas.
In a statement by Governor Abbott, he maintained, "Texas continues to ensure that Texans across our great state have access to affordable housing options through the Housing Tax Credit Program." He highlighted how the awards are critical for developers and housing agencies to not only improve but also to upgrade affordable housing units and to offer affordable rent prices in Texas. Abbott expressed his gratitude towards TDHCA for its role in presenting housing opportunities for those in need and asserted the program's importance for the future of Texas.
TDHCA Executive Director Bobby Wilkinson emphasized the impact of these credits, proclaiming, “The Housing Tax Credit Program serves as a crucial factor in making affordable housing available to hard working families, senior citizens, and persons with disabilities,” According to Wilkinson, the public-private partnership demonstrated by these awards is instrumental in community development, including the rehabilitation of properties at risk of becoming non-affordable.
This year's Competitive 9% housing tax credits will be used to finance the construction of 45 high-quality, new properties, including the adaptive reuse of two existing properties in Dallas and Fort Worth totaling 3,450 affordable units. Moreover, an additional 18 properties with 1,025 units are set to be acquired and rehabilitated. These credits, authorized under the United States Internal Revenue Code, represent the state's main strategy to direct private capital toward developing affordable rental housing. Developers plan to use the revenue from the sale of these credits to partially cover up to 70 percent of eligible development costs for each property.
Future updates on the status of these developing projects and changes to the award list, if any, will be published following this announcement. For those interested in delving deeper into the specifics of the TDHCA's Housing Tax Credit Program, further information can be accessed through the TDHCA website, where a complete list of the 2024 9% HTC application awards is also available for review.
