Texas Housers is pleased to announce the release of “How to Improve Housing Tax Credits for Low Income Texans: 2025 Report,” a new analysis on Texas’ Low Income Housing Tax Credit (HTC) program. The report demystifies this critical housing program and outlines policy changes that can improve the HTC program for vulnerable, low income Texans who are the most in need of affordable, dignified housing.
Read it here.
The promises and challenges of Housing Tax Credits’ ability to address low-income housing needs
There is a severe shortage of housing available and affordable to the lowest income families, those making at or below 30% of the Area Median Income (AMI). There are just 25 affordable units in Texas for every 100 households making no more than 30% AMI. There is virtually no shortage of affordable units for households making more than 50% AMI in most areas of the state.
Low income Texans have a right to safe and secure housing, but are disproportionately harmed by living in high poverty neighborhoods that are more vulnerable to hazards. The lack of deeply affordable, safe housing and the inability of private, market rate housing to address this need demonstrates a clear and chronic market failure. Focusing public funds on providing decent housing for our most vulnerable neighbors is the appropriate response.
Despite the severe need for units affordable to the lowest income households, just 11% of households served by new Texas HTC funding in the 2024 fiscal year had incomes at or below 30% AMI. The Qualified Allocation Plan (QAP), which guides the awarding of housing tax credits, should be designed to focus funds on helping those who need it most. The QAP is updated annually, which provides a regular opportunity to help shape the policies that determine how the state awards affordable housing funds. The recommendations included in this report will push additional funding towards deeply affordable housing in opportunity rich neighborhoods.
HTC advocacy is challenging. The program is complex and the HTC policy conversations are dominated by developers who are fluent in program rules and can easily travel to our state capital for in-person meetings. But the program and the QAP are deserving of attention from impacted people, advocates, and the public, because it is the largest low income housing program in the state.
Historically, tenants and advocates have had a harder time participating and impacting policy. This report is intended to lower barriers to participation by demystifying the process and highlighting opportunities for improvement to benefit Texas’ lowest income renters.
The HTC program is increasingly important for creating new affordable housing. This tool is one of the few federal affordable housing programs that is not funded through the US Department of Housing and Urban Development (HUD), which is currently facing an uncertain future amid debilitating cuts to funding and staffing at the hands of the newly created Department of Government Efficiency (DOGE). This is one of the few programs not slated for cuts under the current administration, which means that its protection is more important than ever.
Read ‘How to Improve Housing Tax Credits for Low Income Texans: 2025 QAP Report‘ below.
Questions? Email the report’s author, Sidney Beaty, at sidney@texashousing.org
Questions? Email the report’s author, Sidney Beaty, at sidney@texashousing.org
