State invests $950,000 to expand senior rental housing choices in Midlothian
AUSTIN, TX – November 14, 2011 – (RealEstateRama) — The Texas Department of Housing and Community Affairs (TDHCA) and State Representative Jim Pitts today announced a funding award to private developers constructing a new affordable rental property in Midlothian that will help bring stability to the lives of older tenants while providing a shot in the arm to the local economy.
TDHCA will provide a $950,000 loan to developers constructing the 92-unit Terrace at MidTowne Apartments, helping finance eight units designed for low income seniors. The loan, made through the Department’s HOME Investment Partnerships (HOME) Program, is funded through the U.S. Department of Housing and Urban Development.
The development was previously awarded $1 million in annual tax credits through the 2011 TDHCA Housing Tax Credit Program allocation cycle. The Housing Tax Credit Program is the state’s primary means of directing private capital toward the creation or retention of affordable rental housing.
Private investors, who will be able to take advantage of the tax benefits for ten years, purchased the credits to generate approximately $8.1 million in equity financing for the property. The HOME Program loan announced today will provide a critical piece of financing to help maximize the impact of the tax credits.
“I am pleased to learn that Terrace at MidTowne received this funding award from TDHCA,” said Representative Pitts in making the announcement. “The tax credit and HOME programs play an important role in providing housing options for low income residents, particularly for older tenants. I encourage TDHCA to continue working with local officials and neighborhood groups to develop affordable housing in areas where it is most needed.”
“Many older tenants are finding their housing choices severely limited in today’s rental market, and there is a real need for decent affordable housing for the region’s growing population of retired individuals,” said TDHCA Executive Director Tim Irvine. “This award will provide tenants the long-term benefits of a stable, secure home life while creating additional construction jobs and the payroll, taxes, and fees that help provide essential services at the local level.”
Once completed, Terrace at MidTowne will serve older tenants earning no more than 60 percent of the area median family income which, for Midlothian, equals an annual income of $33,180 for a two-person household.
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.
Contact:
Gordon Anderson 512-475-4743
Jill McFarren 512-475-2844
