(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) today announced that it will help finance the reconstruction of an existing affordable rental property in Orange, expanding housing options for low income tenants while revitalizing both the neighborhood and local economy.  

TDHCA awarded $225,317 in housing tax credits and $300,000 in HOME Investment Partnerships (HOME) Program loan funds to private developers rehabilitating the 70-unit Fox Run Apartments. The property will serve households whose annual income does not exceed 60 percent of the area median family income, which for Orange equals an annual income of $34,500 for a family of four.

The HOME loan will help finance units specifically set-aside for persons with disabilities, while the tax credits will further augment $3.48 million in bond proceeds issued to the developers from the Sabine-Neches Housing Finance Corporation. Because the credits provide a dollar value for a 10-year period, the final credit award amount could equal nearly $2 million in equity financing, bringing the total financing package from TDHCA to close to $2.3 million.

“Given the tremendous need for affordable housing, the Department places a strong emphasis on maintaining the state’s stock of existing rental properties to expand the housing choices of young working families and retired individuals,” said TDHCA Executive Director Tim Irvine. “Besides ensuring all residents have a choice where they live, the entire community will benefit from these awards through construction payroll salaries and local purchases that help fuel the local economy.”

The Department’s HOME Program is funded through the U.S. Department of Housing and Urban Development with the goal of expanding the supply of decent affordable housing while strengthening public-private housing partnerships. The Housing Tax Credit Program is authorized under the Internal Revenue Code and is the state’s primary means of directing private developers toward the construction or rehabilitation of affordable rental housing.