Multifamily Housing Programs

The TDHCA Housing Tax Credit (HTC) Program is one of the primary means of directing private capital toward the development and preservation of affordable rental housing for low-income households. Tax credits are awarded to eligible participants to offset a portion of their federal tax liability in exchange for the production or preservation of affordable rental housing. There are two types of Tax Credits: Competitive (9%) and Non-Competitive (4%).

The Multifamily Bond Program issues taxable and tax-exempt mortgage revenue bonds (MRBs) to fund loans to nonprofit and for-profit developers. The proceeds of the bonds are used to finance the construction, acquisition, or rehabilitation of multifamily properties, with the targeted beneficiaries being low income households. Property owners are also required to offer a variety of services to benefit the residents of the development. Specific tenant programs must be designed to meet the needs of the current tenant profile and must be approved annually by TDHCA.

The HOME Multifamily Development Program provides funding to Public Housing Authorities, nonprofits, and for profit entities for the new construction or rehabilitation of affordable multifamily rental developments. Funding is provided in the form of low interest bearing, repayable loans. Multifamily developments carry long-term rent and income restrictions and may be layered with additional funding sources (such as Housing Tax Credits). Development funds are awarded on a first-come, first-served basis through an application submitted under the published Notice of Funding Availability (NOFA).