AUSTIN, TX – August 5, 2010 – (RealEstateRama) — Texas Department of Housing and Community Affairs (TDHCA) today announced statewide funding awards to help finance the development of high quality rental properties offering reduced rents yet with an attractive design to blend seamlessly within the community.
TDHCA will provide $68 million in housing tax credits to private developers constructing or rehabilitating 55 developments that will feature rents affordable to households earning up to 60 percent of the area median family income. The credits are expected to help develop approximately 5,560 affordable rental units across the state.
Once completed, these safe, decent and affordable rental units will help stabilize the lives of low income tenants and the neighborhoods in which they live, while providing a significant boost to the state’s economy.
“Far too many working Texans are struggling to meet their monthly rent obligations or face living in substandard housing,” said TDHCA Executive Director Michael Gerber. “We are confident that these awards will have a dramatic and positive impact on low income households throughout the state, particularly young families just starting out in life or older Texans living on fixed incomes. The added bonus will be the creation of numerous construction jobs, as well as taxes and fees to local governments that help provide essential public services.”
The awards announced today were made through the 2010 Housing Tax Credit Program allocation, the state’s primary means of directing private capital toward the creation or retention of affordable rental housing. The tax credits provide private investors with a benefit used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing.
Each property must reserve a specific number of units for income eligible tenants and cap rents at set levels to ensure affordability. TDHCA provides oversight authority for health, safety, and program compliance for up to 30 years to make certain developers maintain the program’s high standards.
The credits will help meet the state’s growing demand for quality, affordable housing. The Department estimates that approximately 1.7 million households in Texas experience an extreme housing cost burden, leaving fewer finances for other necessities. In addition to an increased housing stock, cities are also expected to benefit from the economic stimulus of this award.
Gerber cited a recent study by the National Association of Home Builders which shows that the one-year impact of a typical 100-unit property developed through housing tax credits includes 56 full-time construction jobs, $5.4 million in total wages and salaries, and $862,800 in taxes and other revenue to state and local governments.
For more information about the Housing Tax Credit Program in general, or the 2010 allocation in particular, 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 is the state agency responsible for affordable housing, community and energy assistance programs, and colonia activities. The Department currently administers $2 billion through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.
Contact: Gordon Anderson 512-475-4743
Jill McFarren 512-475-2844