(AUSTIN) — The Texas Department of Housing and Community Affairs (“TDHCA”) has awarded $923,821 in housing tax credits to private developers constructing the 72-unit Constitution Court Phase II Apartments, a planned rental property in Copperas Cove that will feature 69 units offering reduced rents.

The award, made through the state housing agency’s Housing Tax Credit Program, is expected to increase housing options for individuals and families earning no more than 60 percent of the area median family income. For Copperas Cove, this equals an annual income of $35,340 for a four-person family.

“The Housing Tax Credit Program is increasingly important to the state’s growing numbers of young working families, as it expands the housing choices for these households while offering them a path to improved living standards,” said Tim Irvine, TDHCA Executive Director, in announcing the award.

“The program is also a key tool for developing safe, decent rental housing for older Texans living on fixed incomes, another segment of our population growing at a rapid rate,” he continued. “This second phase of Constitution Court will provide the community with attractive, high-quality housing, while at the same time providing an affordable rent to tenants who otherwise would have limited options.” 

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

“When you combine the jobs, payroll funds and sales tax revenue these properties generate,” he explained, “TDHCA anticipates that this allocation of housing tax credits could generate as much as $5.4 million for the Copperas Cove economy, as well as an estimated 84 construction and related jobs.”

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.