Affordable housing in Beaumont gets boost with $747,500 in funding from state housing agency
AUSTIN, TX – September 8, 2008 – (RealEstateRama) — Recognizing that rapidly rising rent levels undermine the stability of families and communities alike, the Texas Department of Housing and Community Affairs (TDHCA) has announced funding awards for the rehabilitation of two Beaumont-area affordable rental properties. The awards will provide area tenants with decent, affordable housing and numerous benefits to the local economy.
TDHCA awarded $458,728 in housing tax credits to the developers of the 150-unit Park Shadows Apartments, which will serve a general income eligible population; and another $288,807 in tax credits to the developers of Seville Row Apartments, which will feature 90 units specifically serving low income seniors. Because the credits provide a dollar value for a 10-year period, the credit award amount will equal nearly $4.5 million and $2.8 million in financing, respectively.
Each developer will utilize the credits in conjunction with a combined total of $15.7 million in mortgage revenue bond proceeds from the Jefferson County Housing Finance Agency for the construction of these new, high quality rental properties that will offer tenants a reduced rent.
“Southeast Texas is important to TDHCA and we recognize that Beaumont’s economy is growing at a remarkable pace, bringing new jobs and an increased demand for housing to the region,” said Michael Gerber, TDHCA Executive Director. “An unfortunate downside to this growth, however, is that apartment rents can quickly rise beyond what many tenants can afford to pay. Our goal is to provide attractive, high quality housing with an affordable rent while offering tenants the long-term benefits of a stable, secure home life. The added bonus of these awards will be additional construction jobs and a significant infusion of payroll funds into the community.”
Park Shadows and Seville Row will serve tenants whose annual income does not exceed 60 percent of the area median family income, which for Beaumont and Jefferson County would equal an annual income of $30,840 for a family of four.
In addition to a lowered rent, properties funded though the Mortgage Revenue Bond and Housing Tax Credit programs also provide supportive services designed to foster self-sufficiency among young families or promote a healthy environment for older tenants. Examples typically include credit counseling, financial and computer literacy classes, and General Educational Development (GED) courses for younger adults; and transportation services, health screening, and nutrition programs for seniors.
The Housing Tax Credit Program is the state’s primary means of directing private capital towards the creation of affordable rental housing. The tax credits provide private investors with a benefit that is used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing. The value associated with the tax credits allows units to be leased to qualified families at below market rate rents.
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 services, energy assistance, and colonia housing programs. The Department annually administers more than $400 million 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
