The Texas Department of Housing and Community Affairs (TDHCA) along with State Representative Jim Pitts announced on Monday the awarding of a $950,000 loan to private developers who are constructing Terrace at MidTowne, a new affordable rental property in Midlothian, Tex.
The loan, made through the Department’s HOME Investment Partnerships Program, is funded through the U.S. Department of Housing and Urban Development. The senior housing development was previously awarded $1 million in annual tax credits through the 2011 TDHCA Housing Tax Credit Program allocation cycle.
The tax credit program enables private investors to take advantage of the tax benefits for ten years, and $8.1 million worth of equity financing for the property was produced through investors buying the credits.
“The tax credit and HOME programs play an important role in providing housing options for low income residents, particularly for older tenants,” said Representative Pitts in a statement.
“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,” said TDHCA Executive Director Tim Irvine.
Upon completion, Terrace at MidTowne will house older tenants who earn no more than 60% of the area median family income, which, for Midlothian, equals and annual income of $33,180 for a two-person household.
Written by Alyssa Gerace