AUSTIN, TX - The Texas Department of Housing and Community Affairs (TDHCA) and State Representative Abel Herrero today announced that the Department will provide financing to a high quality rental property in Corpus Christi offering reduced rents yet with an attractive design to blend seamlessly within the community.
Source: Texas Department of Housing and Community Affairs
TDHCA will provide $1.3 million in housing tax credits to private developers constructing the 96-unit Costa Tarragona III Apartments, a rental property that will feature rents affordable to tenants earning no more than 60 percent of the area median family income. For Corpus Christi, this equals an annual income of $30,120 for a family of four.
Once completed, these safe, decent rental units will help stabilize the lives of low income tenants and the neighborhoods in which they live, while providing a significant boost to the city's economy.
"Despite signs of recovery in the nation's economy, far too many families continue to struggle in affording their necessities including a safe and quality place to call home," said Representative Herrero in making the announcement. "When hardworking Texans must set aside almost half of their income toward paying rent, many of the family's other needs are in jeopardy of not being met. I welcome this award of housing tax credits and encourage TDHCA to continue its commitment to high quality, affordable housing for all Texans."
"The Housing Tax Credit Program is the state's most productive resource for developing affordable rental housing," said TDHCA Executive Director Michael Gerber. "We are confident that this award will have a dramatic and positive impact on low income residents of Corpus Christi, particularly young families just starting out in life or older Texans living on fixed incomes. The added bonus will be the creation of numerous construction jobs, as well as taxes and fees that help provide essential public services at the local level."
Costa Tarragona III will help meet a growing demand for quality, affordable housing throughout the area. The Department estimates that approximately 59,191 households in the 19-county Coastal Bend region experience an extreme housing cost burden, leaving fewer finances for other necessities.
The award was one of 55 TDHCA made through the 2010 Housing Tax Credit Program allocation, the state's primary means of directing private capital toward the creation or retention of affordable rental housing. The tax credits provide private investors with a benefit used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing.
Properties funded though tax credits must reserve a specific number of units for income eligible tenants and cap rents at set levels to ensure affordability. TDHCA provides oversight authority for health, safety, and program compliance for up to 30 years to make certain developers maintain the program's high standards.
In addition, Corpus Christi will benefit from the significant economic stimulus of this award. According to a study by the National Association of Home Builders, the one-year impact of a typical 100-unit property developed through housing tax credits includes 56 full-time construction jobs, $5.4 million in total wages and salaries, and $862,800 in taxes and other revenue to state and local governments.
TDHCA anticipates that the 2010 credit allocation of approximately $68 million will help create or retain as many as 5,560 affordable rental units statewide.
For more information about the Housing Tax Credit Program in general, or the 2010 allocation cycle in particular, please visit the program online at www.tdhca.state.tx.us/multifamily/htc/index.htm.
The Texas Department of Housing and Community Affairs is the state agency responsible for affordable housing, community services, energy assistance, and colonia housing programs. The Department currently administers more than $2 billion through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.