Episode 135: Texas Awards $114M in Housing Tax Credits

Governor Greg Abbott has announced more than $114 million in housing tax credits awarded by the Texas Department of Housing and Community Affairs (TDHCA), covering 70 rental properties and financing the construction or rehabilitation of over 4,400 affordable units statewide. For LIHTC investors, syndicators, developers, and lenders, this is one of the largest single-cycle award announcements in the Texas market and a significant signal about the state's affordable housing pipeline heading into the back half of 2026. Key Takeaways: TDHCA awarded over $114 million in housing tax credits in this cycle — one of the largest single announcements in recent Texas history. Awards span 70 rental properties, supporting construction or rehabilitation of more than 4,400 affordable units across the state. The award mix includes both new construction and rehabilitation deals, reflecting TDHCA's ongoing preservation strategy alongside new supply. 4% LIHTC deals paired with tax-exempt private activity bonds remain a key tool for rehab transactions, particularly as construction costs keep ground-up deals under pressure. Texas's QAP prioritizes proximity to amenities, income targeting, and geographic distribution — factors that will shape competitive positioning in future cycles. Developers who did not receive awards should analyze the geographic distribution of winning deals to inform future application strategy. TDHCA's full award list — including property-level credit amounts and credit types — is expected to be published on TDHCA's website and is essential reading for anyone active in the Texas market. Texas consistently operates one of the most competitive LIHTC allocation programs in the country. With this cycle closing at over $114 million across 70 deals, the state's pipeline remains robust — but so does the competition. Investors, syndicators, and lenders should monitor TDHCA's website for the full award list and begin positioning now for the next application cycle. For those tracking affordable housing capital deployment at scale, Texas remains one of the most consequential state markets to watch. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.