State housing agency helps Kilgore area with affordable housing

Realizing that many young families and retired individuals are struggling to keep pace with rising rent levels, the Texas Department of Housing and Community Affairs (TDHCA) has announced that it will help finance new construction at two apartment complexes in Kilgore.

TDHCA will provide $930,000 in housing tax credits to support the development of affordable rental properties totaling 148 units.

Developments in Kilgore receiving financing from TDHCA include Northview Apartments, 72 units, $238,654 and Lexington Court Phase II, 76 new units, $693,584. Northview Apartments is on Longview Street and Lexington Court is on Hwy. 259. Both apartment complexes are planning significant expansions.

"I'm glad to work with local community leaders so that affordable housing is available to East Texans," said State Representative Tommy Merritt, regarding the funding announcement.

"The current housing market is quickly pushing rents beyond what many Texans can afford, undermining families and communities alike," said TDHCA Executive Director Michael Gerber. "Our goal is to provide attractive, high quality housing with an affordable rent while offering tenants the long-term benefits of a stable, secure home life. The added bonus of these awards will be additional construction jobs and a significant infusion of payroll funds into the area's economy.

This award will meet a growing demand for this type of housing in the area, Gerber stated. The Department estimates that approximately 27,100 households in the 23- county region of northeast Texas are in need of affordable housing. "When 30 percent, 40 percent, or more of a household's paycheck goes toward paying the rent, many of the family's other needs are simply not going to be met," he said.

In addition to needed affordable housing, the Kilgore area is also expected to benefit from the economic stimulus of this award. A recent study by the National Association of Home Builders shows that the one-year impact of a typical 100-unit property financed through tax credits includes 151 local jobs, $783,000 in taxes and other revenue for local governments, and $7.3 million in additional income for the local economy.

These awards were part of 59 TDHCA made through the 2008 Housing Tax Credit Program, the state's primary means of directing private capital toward the creation or retention of affordable rental housing. The tax credits provide private developers with a benefit used to offset a portion of their federal tax liability in exchange for producing housing units that offer tenants an affordable rent based on their income.

In addition to a lower rent, most properties funded though the Housing Tax Cred- it Program also provide supportive services designed to foster self-sufficiency among young families or promote a healthy environment for older tenants. Examples typically include credit counseling, financial and computer literacy classes, and General Educational Development (GED) courses for younger adults; and transportation services, health screening, and nutrition programs for seniors.

The credits are allocated each year through a competitive application process. The Department annually receives nearly twice as many applications as it can finance, demonstrating the high demand for affordable rental housing. TDHCA estimates the 2008 credit allocation of $42.5 million will create 5,800 units statewide serving households earning no more than 60 percent of the area median family income.

The Texas Department of Housing and Community Affairs is the state agency responsible for affordable housing, community and energy assistance programs, and colonia activities. The Department annually administers more than $400 million through for-profit, nonprofit, and local government partnerships to deliver local housing and community-based opportunities and assistance to Texans in need.