Low Income Housing Tax Credits (LIHTCs) play a key role in the development and preservation of affordable rental housing for low-income households. Tax credits provide a source of equity financing that multifamily developers can use to create affordable rental housing. There are two types of housing tax credits: competitive (9%) and non-competitive (4%). The state of Texas' housing tax credit program is administered by the Texas Department of Housing and Community Affairs.
Using Tax Credits with Multifamily Tax-Exempt Bonds
The Texas State Affordable Housing Corporation (TSAHC) is a 501(c)(3) nonprofit organization created at the direction of the Texas Legislature to create affordable housing in Texas. Since 2001 TSAHC has issued more than $600 million in multifamily or rental tax-exempt housing bonds which can be used with low income housing tax credits to help build or preserve affordable rental housing in Texas.
As one of only two authorized statewide issuers of housing bonds, TSAHC receives 10% of the statewide volume cap for rental private activity bonds and has unlimited authority to issue 501c3 bonds for rental housing projects.
As a conduit issuer, TSAHC has the authority to process and approve tax-exempt bonds that fulfill one of these four targeted housing needs: