TDHCA board approves $23 million action bolstering rural housing stock

(AUSTIN) – The Texas Department of Housing and Community Affairs (TDHCA) Governing Board today approved $23 million in housing tax credits to rehabilitate 825 multifamily units in rural areas of the state. Awarded through TDHCA’s 4% Housing Tax Credit Program, the 22 applications that made up today’s decision provide housing affordability for low-income families for the next 30 years.

The 4% HTC Program coupled with the Multifamily Private Activity Bond Program affords developers the opportunity to direct private capital toward the development and preservation of affordable rental housing for low-income households. The applications approved today will be pooled into one bond issuance totaling $39 million in private activity bonds.

“When pooled together, rural property applications like those approved today, are better served when combining them under one bond issuance,” explained Teresa Morales, TDHCA Director of Multifamily Bonds and Administrator of 4% Housing Tax Credits. “It can be cost prohibitive for smaller properties or those in rural areas to apply for bonds. The flexibility of financing through the Private Activity Bond and 4% HTC Programs allow developers to pool applications under one bond issuance, thus helping absorb the costs associated with bonds issuances and achieving greater scalability with rehabilitation or construction efforts.”

The following rural properties were included in today’s board approval: