Tax credits expected to build or rehabilitate 3,457 units of affordable rental housing, generate $276.5 million economic impact on state
AUSTIN, TX – August 3, 2011 – (RealEstateRama) — The Texas Department of Housing and Community Affairs (TDHCA) today announced that it will finance the development of 38 affordable rental properties throughout the state that will combine an affordable rent with the aesthetic qualities of high-end developments. These properties will expand housing options for the state’s growing population of retirees and younger working families while generating a significant impact on the economy.TDHCA will provide $39.5 million in financing through the 2011 Housing Tax Credit Program allocation cycle, helping create an estimated 3,457 units of affordable rental housing designed to serve Texans earning no more than 60 percent of the area median family income.
The developments made possible by these credits will have a direct economic impact totaling an estimated $276.5 million for the state.
“Most cities in Texas are currently experiencing high rental occupancy rates, with demand often driving rents beyond what many households can afford,” explained TDHCA Acting Executive Director Tim Irvine. “Our primary mission is to help build stronger communities and keep our economy robust by expanding the stock of quality rental housing and offering tenants the long-term benefits of a stable, secure home life. All Texans benefit from the construction jobs, payroll funds, and sales tax revenue that today’s awards will generate for the state and local economies.”
The Housing Tax Credit Program is the state’s primary means of directing private capital toward the creation or retention of affordable rental housing. This U.S. Treasury program allocates credits to the states according to a formula currently set at $2.15 per capita.
The credits provide developers and their investment partners with a benefit used to offset a portion of their federal tax liability in exchange for the production of high quality affordable rental housing subject to rigorous monitoring to ensure quality and affordability are maintained.
In addition to needed affordable housing, several communities are also expected to benefit from the economic multiplier of the local development made possible by these awards.
According to a recent study by the National Association of Home Builders, the direct impact of a typical 100-unit property developed through housing tax credits includes 122 full-time construction jobs, $7.9 million in total wages and salaries, and $827,000 in taxes and other revenue to state and local governments.
For more information about the Housing Tax Credit Program and the Department’s 2011 allocation cycle, please visit the program online at www.tdhca.state.tx.us/multifamily/htc/index.htm.
About the Texas Department of Housing and Community Affairs
The Texas Department of Housing and Community Affairs administers a number of state and federal programs through for-profit, nonprofit, and local government partnerships to strengthen communities through affordable housing development, home ownership opportunities, weatherization, and community-based services for Texans in need.
Gordon Anderson 512-475-4743
Jill McFarren 512-475-2844