Texas Makes Its Largest LIHTC Allocation to Date
The first 9 percent tax credit awards after the OBBBA will fund seven more projects than last year.
Texas will finance the development or rehabilitation of 70 properties consisting of more than 4,400 affordable housing units through the award of more than $114 million in 9 percent LIHTC financing.
This marks the largest allocation in the Lone Star State’s history and the first post-OBBBA. The current proposed funding is $15 million higher than last year’s, while also serving seven more properties. However, the number of affordable units remained essentially flat year-over-year.
Most of the tax credits will go toward new construction, though a minority will fund acquisitions and rehabilitations. San Antonio is an exception, with the market presenting a more balanced activity, slightly tilting toward rehabs, according to the applications at the Texas Department of Housing and Community Affairs.
One property slated for a major renovation is the historic Robert E. Lee community in the downtown area. Franklin Cos. teamed up with the San Antonio Housing Trust for the modernization of this century-old building, which will create 63 new affordable units.
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Other markets, including Houston, Dallas-Fort Worth and Austin, Texas, favor new development. However, several projects that won tax credits are not fully affordable. One of them is Reserve at Augustine, a 96-unit project to be developed by Pivotal Housing Partners in Dallas. Of the total, 15 apartments would have market-rate rents.
Tax credits fund senior and supportive housing
A fair share of developments will cater to the elderly. Canterbury Development plans an 88-unit, fully affordable senior housing project in Houston dubbed Oasis Gardens. In the same market, Pennrose seeks to construct the 73-unit Residences at Sakowitz, a similar type of property.
In addition, select projects are set to provide supportive services for the people who are at high risk of homelessness. Jordan II Apartments is one such development, spearheaded by Foundation Communities. The 66-unit project will rise in Austin.
