The Texas Department of Housing and Community Affairs, along with State Representative Jim Pitts, has just announced a funding award to private developers constructing a new, affordable rental property located in Midlothian that is supposed to help bring stability to the lives of older tenants while simultaneously providing a shot of adrenaline to the local economy.
The Texas Department of Housing and Community Affairs will provide $950,000 in loans to developers constructing the new 92-unit Terrace at MidTowne Apartments. This will help finance eight units designed for lower income seniors. In addition to that, the loan, which was made through the Department’s HOME Investment Patnerships Program, is funded via the United States Department of Housing and Urban Development.
This development was previously awarded $1 million in annual tax credits through the 2011 TDHCA Housing Tax Credit Program allocation cycle. The Housing Tax Credit Program is Texas’ primary means of directing private capital toward the creation or retention of affordable rental housing.
Private investors, the likes of which will be able to take advantage of the tax benefits for a total of ten years, purchased the credits to generate approximately $8.1 million in equity financing for the property. In addition to that, the HOME Program loan just announced will also provide a critical piece of financing in order to help maximize the impact of the tax credits.
According to Representative Pitts, “I am pleased to learn that Terrace at MidTowne received this funding award from TDHCA. The tax credit and HOME programs play an important role in providing housing options for low income residents, particularly older tenants. I encourage TDHCA to continue working with local officials and neighborhood groups to develop affordable housing in areas where it is most needed.”
TDHCA Executive Director Tim Irvine added, “Many older tenants are finding their housing choices severely limited in today’s rental market, and there is a real need for decent affordable housing for the region’s growing population of retired individuals. This award will provide tenants the long-term benefit of a stable, secure home life while creating additional construction jobs and the payroll, taxes and fees that help provide essential services at the local level.”
Upon completion Terrace at MidTowne will server older tenants that earn no more than 60% of the area median (middle) family income which, for Midlothian at least, equals an annual income of no more than $33,180 for a two-person household.
Source: Real Estate Rama – State invests $950,000 to expand senior rental housing choices in Midlothian
