Using data from the U.S. Department of Housing and Urban Development (HUD), Novogradac’s analysis updates its LIHTC Mapping Tool, which tracks 53,032 LIHTC properties and nearly 3.7 million rental homes placed in service from 1987 to 2022. This tool allows users to explore the distribution of LIHTC properties across the U.S. by state and congressional district.
Texas Faces the Lowest Allocation Per Low-Income Home
According to the analysis, Texas has the lowest total allocation amount per low-income home in the country, with an average of just $4,426 allocated for each affordable unit across the state’s 2,862 LIHTC projects. This is despite Texas’s total of 324,121 affordable homes built under the program. While other states have been able to secure significantly higher funding per unit, Texas is still struggling with limited resources to meet its housing needs.
This funding shortage is a key issue for Texas developers, who face increasingly tight budgets as they work to meet the demand for affordable housing. The discrepancy between the number of properties and the allocation amounts exacerbates this problem, as districts with many properties do not receive the highest allocations. This mismatch is influenced by factors like construction costs, gap financing, and whether the housing is new construction or rehabilitation.
In order to address Texas’s housing crisis, it is clear that the state needs a significant increase in LIHTC funding. Without additional resources, the state’s ability to build affordable housing will continue to fall short of the demand.
