State housing agency commits $5.7 million for major upgrades to Big Spring rental property

(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) today announced that it will help finance the acquisition and rehabilitation of a 46-year old affordable rental property in Big Spring, preserving the housing options of area low-income families and keeping the community a healthy, vibrant one.   

TDHCA awarded a funding package that could total $5.7 million to private developers proposing significant improvements to the Northcrest Apartments, a 68-unit complex located at 1002 North Main Street.  

The package includes a loan of up to $4.3 million derived from mortgage revenue bond proceeds as well as an allocation of housing tax credits, the sale of which is expected to generate an additional $1.4 million in equity financing for the development.

In exchange for this financing, the Northcrest Apartments will set aside all 68 units for households whose annual income does not exceed 60 percent of the area median family income. For Howard County, this equals an income of $33,240 for a family of four. 

“The Department recognizes Big Spring’s need for quality affordable rental housing, and today’s announcement will preserve housing choices for the city’s younger working families,” said TDHCA Executive Director Tim Irvine. “Maintaining the city’s existing housing stock also ensures the community maintains both its workforce and a vibrant, diverse population, while maximizing the state’s resources.”

In addition to a lower rent, properties funded though mortgage revenue bonds and housing tax credits also provide supportive services designed to foster self-sufficiency among young families or promote a healthy environment for older tenants.