October 11, 2013
Gordon Anderson (512) 475-4743
Public Inquiries: TDHCA Housing Resource Center: (800) 525-0657
- State housing agency to finance rental property in El Paso
- Affordable housing stock helps keep Texas vibrant
- Construction generates income, fees for local economy
State housing agency awards $1.2 million to expand El Paso's affordable rental market
(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) has awarded $1.2 million in housing tax credits to private developers constructing the 152-unit North Desert Palms Apartments, a planned rental property in El Paso that will offer units with reduced rents.
The award, made through the state housing agency’s Housing Tax Credit Program, will help finance 100 units which will be set aside for individuals and families earning no more than 60 percent of the area median family income. For El Paso, this equals an annual income of $30,300 for a four-person household.
Because the state’s future population growth is expected to be the greatest at both ends of the age spectrum, an ample stock of affordable housing is critical to keeping the Texas economy healthy and vibrant, according to TDHCA Executive Director Tim Irvine.
“The Housing Tax Credit Program plays a critical role in TDHCA’s mission to offer housing options for Texans of all income levels,” Irvine said. “Whether it is a young working family just starting out in life or a senior citizen living on a fixed income, thousands of Texans are in need of a safe, decent home that fits their limited budget. North Desert Palms will represent an important step toward filling that need.”
Besides bringing greater stability to low income individuals and families, he noted the program’s economic multiplier effect ensures the entire community will benefit from today’s award.
“When you combine the jobs, payroll funds and sales tax revenue these properties generate,” Irvine explained, “TDHCA anticipates that this allocation of housing tax credits could generate as much as $7.9 million for the El Paso economy and $827,000 in taxes and fees for both city and state coffers.”
The federal Housing Tax Credit Program is the state’s primary means of directing private capital toward the development of affordable rental housing. Developers and their investment partners use the credits to offset their federal tax liability on a dollar-for-dollar basis in exchange for the construction or rehabilitation of rental units offering a reduced rent.
About the Texas Department of Housing and Community Affairs
The Texas Department of Housing and Community Affairs administers a number of state and federal programs through for-profit, nonprofit, and local government partnerships to strengthen communities through affordable housing development, homeownership opportunities, weatherization, and community-based services for Texans in need.
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