Governor Greg Abbott has announced that the Texas Department of Housing and Community Affairs (TDHCA) is distributing over $99 million in housing tax credits. This funding aims to finance the development or rehabilitation of 63 rental properties across Texas, providing reduced rents and increased housing options for residents. The initiative is expected to result in over 4,410 units with rents affordable for households earning up to 80% of the area median family income.
“As our state continues to grow, we must ensure that Texans have access to affordable housing so they can thrive in our great state,” said Governor Abbott. “The over $99 million in housing tax credits is critical to improve and upgrade affordable housing units for Texans. Working with the Texas Department of Housing and Community Affairs, we will build a more affordable and prosperous Texas for generations.”
Bobby Wilkinson, Executive Director of TDHCA, emphasized the importance of the program: “The Housing Tax Credit Program is a key tool for creating new developments and preserving affordable housing in our communities. TDHCA is committed to bringing high quality, affordable housing to Texas residents.”
Investors purchasing these credits can apply them toward their federal tax liability annually for ten years on a dollar-for-dollar basis in exchange for their investment in the property.
Authorized under the United States Internal Revenue Code, the Housing Tax Credit Program serves as Texas’s primary method for directing private capital into developing affordable rental housing. Developers use proceeds from selling these credits to help finance their projects, potentially covering up to 70% of each property’s eligible development costs.
A list of 2025 9% HTC application awards has been made available; however, it may change if any developments are unable to proceed.
