Texas to add over 4,400 affordable rental homes with $114 million tax credit investment

Texas is set to significantly boost its affordable housing stock with a $114 million investment in tax credits. Governor Greg Abbott announced the initiative, which will fund the construction and rehabilitation of 70 residential complexes across the state, creating over 4,400 rental units for working families.

The Texas Department of Housing and Community Affairs (TDHCA) will administer the tax credits, allocating them to developers for selected projects. Abbott stated that the state's rapid growth necessitates increased access to affordable housing. "As our state grows, we must ensure Texans have access to the affordable housing they need to thrive," he said, emphasizing the investment's role in providing quality homes for working families.

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As our state grows, we must ensure Texans have access to the affordable housing they need to thrive.

The program will support both new construction and the renovation of existing affordable housing developments. TDHCA Executive Director Bobby Wilkinson highlighted the program's importance, calling the Housing Tax Credit Program a "key tool for creating new developments and preserving affordable housing in our communities." He reiterated the agency's commitment to facilitating high-quality, affordable housing for Texas residents.

An increase in federal housing tax credits, stemming from the federal One Big Beautiful Bill enacted under Donald Trump, has expanded the TDHCA's resources. This federal boost has allowed the state agency to fund more projects in 2026 to address the substantial demand for more accessible rental properties.

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The Housing Tax Credit Program is a key tool for creating new developments and preserving affordable housing in our communities.