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Credits to help private developers expand rental housing choices of low income Texans, could generate $760 million economic impact on state

(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) has awarded $57.8 million in housing tax credits to private developers constructing or rehabilitating 64 rental properties across the state offering units with reduced rents.

The awards, made through the state housing agency’s 2013 Housing Tax Credit Program allocation cycle, are expected to help finance 5,009 affordable rental units and increase housing options for individuals and families earning no more than 60 percent of the area median family income.

Because the state’s future population growth is expected to be the greatest at both ends of the age spectrum, an ample stock of affordable housing is critical to keeping the Texas economy healthy and vibrant, according to TDHCA Executive Director Tim Irvine.

“The Housing Tax Credit Program plays a critical role in TDHCA’s mission to offer housing options for Texans of all income levels,” Irvine said. “Whether it is a young working family just starting out in life or a senior citizen living on a fixed income, thousands of Texans are in need of a safe, decent home that fits their limited budget. The properties we are helping finance through today’s awards are an important step toward filling that need.”

Besides bringing greater stability to low income individuals and families, he noted the program’s economic multiplier effect ensures that the entire state will benefit from today’s award.

“When you combine the jobs, payroll funds and sales tax revenue these properties generate, and then add in significant amounts of private equity and conventional financing,” he explained, “TDHCA anticipates that this year’s credit allocation could have as much as a $760 million impact on the state’s economy.”

The federal Housing Tax Credit Program is the state’s primary means of directing private capital toward the development of affordable rental housing. 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.