Awards expected to build or improve 4,700 units of affordable rental housing, generate $389.1 million economic impact on state
AUSTIN, TX – July 30, 2012 – (RealEstateRama) — The Texas Department of Housing and Community Affairs (TDHCA) today announced it has allocated $48.6 million in housing tax credits to developers of affordable rental properties, helping increase housing choices for the state’s growing population of younger working families and senior citizens.
The awards, made through the 2012 Housing Tax Credit Program allocation cycle, are projected to help finance the construction or rehabilitation of 45 properties comprising 4,773 affordable rental units which TDHCA projects will have an economic impact as much as $389.1 million on the state.
More important is the positive impact these properties have on housing options for low-income tenants, noted TDHCA Executive Director Tim Irvine.
“The Housing Tax Credit Program plays a critical role in TDHCA’s mission of expanding housing choices for all Texans,” Irvine said. “The program combines private investment with the expertise of private developers to create housing that is both attractive and affordable to families who otherwise might struggle to pay their rent or face living in substandard housing.”
The program’s economic multiplier effect, however, also ensures that the entire state is positively impacted by these awards, he continued.
“Beyond the construction jobs, payroll funds and sales tax revenue these properties generate, tax credit developments also inject significant amounts of private equity and conventional financing into the economy from investors and banks doing business in the state,” Irvine explained. “This allocation of tax credits will provide greater stability to low-income families and the neighborhoods in which they live while ultimately benefiting us all.”
According to the National Association of Home Builders, a typical 100-unit property financed with housing tax credits results in 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.
The federal Housing Tax Credit Program, authorized under the Internal Revenue Code, is the state’s primary means of directing private capital toward the development of rental housing serving tenants who earn no more than 60 percent of the area median family income.
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.
The program has helped finance more than 200,000 units of safe, decent affordable rental housing in Texas alone since its inception in 1986. For more information about the program and the Department’s 2012 allocation cycle, please visit the program’s Web page on the TDHCA Internet site.
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