(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) today awarded $969,396 in housing tax credits to private developers constructing the 80-unit Bella Terra Apartments, a rental property planned for Brownsville which will offer reduced rents.

Tax credit financing for the development, to be built near the intersection of Morrison Road and Pablo Kisel Boulevard, will allow the property to charge rents affordable to families earning no more than 60 percent of the area median family income. For Brownsville, this equals $30,300 per year for a family of four.

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. Bella Terra represents a small but 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 the entire community will benefit from today’s award.

“When you combine the jobs, payroll funds and sales tax revenue these properties generate,” Irvine explained, “TDHCA anticipates that this allocation of housing tax credits could generate as much as $6.3 million and 98 jobs for the Brownsville 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.