Department Awards $48.9 Million in Housing Tax Credits
On July 28, TDHCA's Governing Board approved the 2006 Housing Tax Credit Program allocation, awarding $48.9 million in federal housing tax credits to 73 applicants. The Department estimates that these credits will help create 6,899 units of affordable rental housing serving households earning no more than 60 percent of the area median family income.
The allocation included nearly $5.2 million in forward commitments from the 2007 credit pool the Board made to seven applications in this year's round. A complete list of all developments receiving tax credits in the 2006 allocation cycle is located on the Housing Tax Credit Program page.
The Housing Tax Credit Program is the state's primary means of directing private capital toward the development of high quality affordable rental housing. The tax credits provide developers and investors with a benefit that is used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing. The value associated with the credits allows units in tax credit properties to offer leases to income eligible tenants at rents below those of market rate apartment properties.
The program has helped create or retain over 114,000 units of safe, decent, and affordable rental housing for low income Texans since the first allocation cycle in 1987.