Governor Abbott Unveils $99 Million Boost for Affordable Housing in TexasAustin, TX - Governor Greg Abbott has announced a significant allocation of over $99 million in housing tax credits by the Texas Department of Housing and Community Affairs (TDHCA). This initiative aims to finance the developme...

Governor Abbott Unveils $99 Million Boost for Affordable Housing in Texas

Austin, TX - Governor Greg Abbott has announced a significant allocation of over $99 million in housing tax credits by the Texas Department of Housing and Community Affairs (TDHCA). This initiative aims to finance the development and rehabilitation of 63 rental properties across Texas, enhancing affordable housing options for residents statewide.

Expanding Housing Opportunities

The awarded tax credits will support developers in creating or upgrading more than 4,410 rental units. These units will offer reduced rents, making housing accessible to families earning up to 80% of the area median income. Governor Abbott emphasized the importance of affordable housing in Texas's continued growth, stating, “As our state continues to grow, we must ensure that Texans have access to affordable housing so they can thrive in our great state.”

Collaboration for a Prosperous Future

Governor Abbott highlighted the collaborative efforts with TDHCA, underscoring the goal of building a more affordable and prosperous Texas for future generations. TDHCA Executive Director Bobby Wilkinson echoed this sentiment, remarking, “The Housing Tax Credit Program is a key tool for creating new developments and preserving affordable housing in our communities.”

Mechanism Behind the Tax Credits

The Housing Tax Credit Program, a primary channel for steering private capital towards affordable housing, operates under the United States Internal Revenue Code. Investors purchasing these credits can apply them to their federal tax liabilities over a 10-year period on a dollar-for-dollar basis, incentivizing their investment in affordable housing projects. The credits can cover up to 70% of a property's eligible development costs, significantly aiding developers in financing their projects.

Implications for Texas Residents

This initiative is poised to significantly impact Texas residents, providing more housing options at affordable rates. As the state's population grows, these measures ensure that affordable housing remains available, supporting the economic well-being of communities across Texas.