(AUSTIN) — The Texas Department of Housing and Community Affairs (TDHCA) has awarded $890,000 in housing tax credits to nonprofit developers constructing the 78-unit Campanile at Jones Creek, a planned senior rental property in Richmond that will offer units with reduced rents.

The award, made through the state housing agency’s Housing Tax Credit Program, will help finance 72 units which will be set aside for older tenants earning no more than 60 percent of the area median family income. For Fort Bend County, this equals an annual income of $31,800 for a two-person household.

Because the state’s future population growth is expected to be the greatest at both ends of the age spectrum, an ample stock of affordable housing is critical to keeping the Texas economy healthy and vibrant, according to TDHCA Executive Director Tim Irvine. 

“The Housing Tax Credit Program plays a critical role in TDHCA’s mission to offer housing options for Texans of all income levels,” Irvine said. “Whether it is a young working family just starting out in life or a senior citizen living on a fixed income, thousands of Texans are in need of a safe, decent home that fits their limited budget. Campanile at Jones Creek will represent an important step toward filling that need.”  

Besides bringing greater stability to low-income seniors, he noted the program’s economic multiplier effect ensures the entire community will benefit from today’s award.

“When you combine the jobs, payroll funds and sales tax revenue these properties generate,” Irvine explained, “TDHCA anticipates that this allocation of housing tax credits could generate as much as $5.2 million for the Richmond economy and $552,000 in taxes and fees for both city and state coffers.”  

The federal Housing Tax Credit Program is the state’s primary means of directing private capital toward the development of affordable rental housing. Developers and their investment partners use the credits to offset their federal tax liability on a dollar-for-dollar basis in exchange for the construction or rehabilitation of rental units offering a reduced rent.