The Texas Department of Housing and Community Affairs (“TDHCA”) awarded $4,462,613 of the $60.1 million in housing tax credits awarded across Texas for the construction or rehab of affordable rental housing.
The three Texas NeighborWorks Organizations received $4,462,613 in Low Income Tax Credits for five projects comprised of 421 units.
- Foundation Communities in Austin, Texas received tax credits for three properties. A total annual award of $2,990,000 for 293 units.
- Avenue CDC in Houston received tax credits for one property. A total annual award of $566,000 for 48 units
- Brownsville CDC received tax credits for one property. A total annual award of $897,613 for 80 units
The awards, made through the state housing agency’s 2014 Housing Tax Credit Program allocation cycle, is expected to help finance 5,407 affordable rental units, increasing housing options for individuals and families earning no more than 60 percent of the area median family income.
“The Housing Tax Credit Program is increasingly important to the state’s growing numbers of young working families, as it expands the housing choices for these households while offering them a path to improved living standards,” according to Tim Irvine, TDHCA Executive Director.
Besides bringing greater stability to low-income individuals and families, the construction payroll salaries, local purchases, and taxes and fees the program generates ensures that the entire state will benefit from the awards.
The federal Housing Tax Credit Program is the state’s primary means of directing private capital toward the development of affordable rental housing. Developers and their investment partners use the credits to offset their federal tax liability on a dollar-for-dollar basis in exchange for the construction or rehabilitation of rental units offering a reduced rent.