TDHCA’s Teresa Morales, director of multifamily bonds, today reported the agency’s 4% Housing Tax Credit (HTC) Program has or will have financed a total of 12,440 affordable housing units in 2023. This represents approximately $137 million in annual 4% HTCs.

“In 2023, TDHCA’s multifamily staff closed, approved or is currently reviewing 58 applications for tax credits,” explained Morales. “Developers committed to building 12,477 units across the state with nearly 100 percent of those being affordable to lower income families and residents.”

Comparing the 2023 4% HTC applications to those in 2022, there was a slight decrease in the total number of units financed and more developers withdrawing applications. Many, if not all, applicants attributed the continued challenges of higher construction costs and increased interest rates as making the proposed developments financially infeasible.

“Even in a year with economic challenges beyond our control, TDHCA partnered with the development industry to produce a significant number of needed, quality affordable housing units,” said Bobby Wilkinson, TDHCA executive director.