The Texas Department of Housing and Community Affairs (TDHCA) has reserved $57.8 million in low-income housing tax credits (LIHTCs) to developers building or rehabilitating 64 properties across the state.
The awards are expected to finance 5,009 affordable rental units.
“The housing tax credit program plays a critical role in TDHCA’s mission to offer housing options for Texans of all income levels,” said Tim Irvine, executive director, in a statement. “Whether it is a young working family just starting out in life or a senior citizen living on a fixed income, thousands of Texans are in need of a safe, decent home that fits their limited budget.”
Besides bringing greater stability to low-income individuals and families, the tax credit program benefits the state’s overall economy, noted Irvine.
“When you combine the jobs, payroll funds, and sales tax revenue these properties generate, and then add in significant amounts of private equity and conventional financing, TDHCA anticipates that this year’s credit allocation could have as much as a $760 million impact on the state’s economy,” he said.
Many eyes have been on the tax credit program in Texas in the last two years, following a judge's ruling that TDHCA unintentionally discriminated in its allocation of tax credits. The agency was accused of disproportionately approving LIHTC developments in predominantly minority neighborhoods and disproportionately denying LIHTC developments in predominantly Caucasian neighborhoods.