In July 2024, Governor Greg Abbott announced that the Texas Department of Housing and Community Affairs (TDHCA) awarded over $95 million in housing tax credits to help finance the development and rehabilitation of more than 60 rental properties, offering reduced rents and increased housing options for Texans throughout the state. Provided through the TDHCA Housing Tax Credit Program (HTC), these awards help developers construct or rehabilitate more than 4,400 units offering affordable rent to households earning up to 80% of the median family income in their respective areas.
This year’s Competitive 9% low income housing tax credits will help finance the construction of 45 high quality, new properties, which includes the adaptive reuse of two existing properties with a total of 3,450 affordable units and the acquisition and rehabilitation of 18 properties offering 1,025 units.
The Low Income Housing Tax Credit Program, authorized under the United States Internal Revenue Code, is the state’s primary means of directing private capital toward the development of affordable rental housing. Developers use proceeds from the sale of the credits to help finance their property. The credits awarded may cover up to 70 percent of each property’s eligible development costs.
We are here to help. Butler Snow’s Texas Regulatory & Government Practice Group provides consulting, advisory and advocacy services related to real estate and economic development. Our team has experience representing investors, national developers, syndicators, REITs, construction firms and development management companies. We help our clients navigate federal, state, and local development incentives available and how best to take advantage of public private partnerships, LIHTCs, economic grants and property tax incentives with the State of Texas and local municipalities.
Governor Abbott’s press release can be found here.
