State housing agency awards $1.4 million in funding for San Antonio affordable rental communities
AUSTIN, TX – September 16, 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 two funding awards to private developers building two new affordable rental properties that will provide low income tenants in San Antonio with decent, affordable housing and numerous benefits to the local economy.
TDHCA awarded $1,105,744 in housing tax credits to the developers of the 252-unit Artisan at San Pedro Creek Apartments, and another $318,785 in tax credits to the developers of City View Apartments, which will feature 245 units. Because the credits provide a dollar value for a 10-year period, the credit award amount will equal nearly $11 million and $3.1 million in financing, respectively.
Each developer will utilize the credits in conjunction with a combined total of $40 million in mortgage revenue bond proceeds from the San Antonio Housing Finance Corporation for the construction of these new, high quality rental properties that will offer tenants a reduced rent.
“These awards play an important role in providing affordable rental housing for the people San Antonio,” said State Senator Leticia Van de Putte, in whose district these properties will be developed. “I commend TDHCA for working with local housing officials, thereby allowing this program to develop housing units in areas where it is most needed, while at the same time providing jobs that stimulate the local economy.”
“San Antonio’s housing market continues to outpace that of the rest of the country, but an unfortunate downside is that apartment rents can quickly rise beyond what many tenants can afford to pay,” said Michael Gerber, TDHCA Executive Director. “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.”
Artisan at San Pedro Creek and City View will serve tenants whose annual income does not exceed 60 percent of the area median family income, which for San Antonio and Bexar County would equal income of $32,820 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
