Texas commits to affordable living solutions with funding for over 60 rental developments
Austin, Texas – In a major step toward expanding access to affordable housing, Governor Greg Abbott announced that the Texas Department of Housing and Community Affairs (TDHCA) has awarded more than $99 million in housing tax credits for the year 2025. This substantial allocation will support the development or rehabilitation of 63 rental properties across Texas, ultimately offering over 4,410 affordable housing units to families in need.
New Projects Aim to Serve Growing Housing Needs
As Texas continues to experience rapid population growth, the demand for affordable housing remains a pressing concern. The newly awarded tax credits aim to address this issue by helping developers either build new rental properties or upgrade existing ones. These developments will offer reduced rental rates to households earning up to 80% of the area median family income, making them accessible to working-class Texans across urban and rural communities.
“As our state continues to grow, we must ensure that Texans have access to affordable housing so they can thrive in our great state,” said Governor Abbott. “The over $99 million in housing tax credits is critical to improve and upgrade affordable housing units for Texans. Working with the Texas Department of Housing and Community Affairs, we will build a more affordable and prosperous Texas for generations.”
TDHCA Executive Director Bobby Wilkinson also emphasized the impact of the program. “The Housing Tax Credit Program is a key tool for creating new developments and preserving affordable housing in our communities,” he stated. “TDHCA is committed to bringing high quality, affordable housing to Texas residents.”
How the Program Works
The awarded housing tax credits fall under the Housing Tax Credit Program, which is authorized by the United States Internal Revenue Code and serves as Texas’ main method for steering private investments toward affordable housing development. Investors who purchase these credits from developers can apply them to their federal tax liability over a 10-year period, creating a powerful incentive to support housing projects.
This financial mechanism allows developers to use the funds from selling the credits to help cover development costs. In many cases, the tax credits can account for up to 70% of a project’s eligible expenses, significantly easing the financial burden on builders and encouraging more investment in affordable rental housing.
The full list of the 2025 9% Housing Tax Credit (HTC) application awards is available to the public. However, TDHCA notes that the award list may change if any of the selected developments are unable to move forward due to financing or regulatory issues.
Through this major investment in affordable housing, state leaders hope to provide more Texans with stable, quality homes—especially as the state continues to face population booms in both major cities and rural counties.
