The Texas Department of Housing and Community Affairs (TDHCA) has awarded nearly $95.5 million in housing tax awards that will help finance the development or rehabilitation of 63 rental properties, offering reduced rents and increased housing options throughout the state. Today’s awards have an approximate value of $955 million over a 10-year term. Awards provided through the 2024 Competitive (9%) Housing Tax Credit (HTC) Program allocation will help developers construct or rehabilitate 4,475 units offering rents affordable to households earning between 20 and 80 percent of the area median family income. 

Construction costs have been trending upwards since the beginning of the COVID-19 pandemic.  The total tax credit investment per affordable housing unit decreased for the first time since 2020, meaning the tax credits are going further to build more units compared to 2023.

Investors purchasing credits allocated to developers may apply the credits toward their federal tax liability each year for 10 years on a dollar-for-dollar basis in exchange for their investment in the property.

Reversing recent trends, this year’s round of awards also showed a positive increase in the total number of affordable units produced over previous years.

This year’s Competitive 9% HTCs will help finance the construction of 45 high quality, new properties, which includes the adaptive reuse of two existing properties (one in Dallas; one in Fort Worth) with a total of 3,450 affordable units, and the acquisition and rehabilitation of 18 properties offering 1,025 units.

The 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.

The list of 2024 9% HTC application awards can be found here. The award list is subject to change should any developments not be able to move forward.