Below are Federal and State affordable housing funding programs that the Housing Department can assist with.
Low-Income Housing Tax Credit (LIHTC)
The Texas Department of Housing and Community Affairs (TDHCA) provides low-income housing tax credits (LIHTC) that allow housing developers to take a federal tax credit to offset up to either 4 percent or 9 percent of its federal tax liability in exchange for building low-income rental housing projects. To be eligible, developers are required to obtain a supportive resolution from the City Council as part of their application. Applicants must also participate in the S.M.A.R.T. Housing Program (see below) to receive City support. For more information on LIHTC in Texas, visit TDHCA (Web).
- 9% Tax Credit Applicants
- 4% Tax Credit Applicants
Private Activity Bonds
Private Activity Bonds are tax-exempt bonds issued by the Austin Housing Finance Corporation (AHFC) or Austin Housing Public Facility Corporation (AHPFC) to finance multi-family developments. The issuer is a “conduit” bond issuer and does not assume any liability or obligation for the bonds, nor are they repaid by taxpayers. Multi-Family Mortgage Revenue Bonds issued by the AHFC or the AHPFC are repaid through rents collected at the bond-financed property, not by the City of Austin or its taxpayers.
Private Activity Bond financing is regulated by the Internal Revenue Service and administered statewide. In Texas, Private Activity Bonds are administered by the Texas Bond Review Board. Potential applicants for Private Activity Bonds should ensure they are familiar with the Bond Review Board’s Private Activity Bond policies and calendar and the program rules.
- Private Activity Bonds Application & Guidelines
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Applicants requesting PABs issued by AHFC or AHPFC for the 2025 PAB Lottery must submit their Private Activity Bond Application no later than Wednesday, August 14 2024. Applications may be submitted to Brendan Kennedy via email at Brendan.Kennedy@austintexas.gov.
Applicants who intend to request a partnership with the Austin Housing Finance Corporation as part of the proposed development must first complete a partnership interest form by July 17, 2024. Applicants who anticipate a funding gap and wish to explore gap financing through the Rental Housing Development Assistance (RHDA) program must submit a RHDA PAB Request Form to the Housing Development Assistance Team at housingdevelopmentassistance@austintexas.gov by July 31, 2024. Applicants who do not meet these deadlines may be ineligible for consideration for PAB inducement.
Issuer staff will review each application upon receipt. If the Issuer Board approves an Inducement Resolution, then an application will be prepared for the Bond Review Board’s Lottery application window, which is open from October 5 - October 20. Applications for the Lottery may receive a reservation at any point in the 2025 calendar year, with a 6-month period after reservation in which to close on PAB financing. Applicants for the 2025 Lottery should be prepared to close as early as July 2025 or as late as February-March 2026. Reservation timing will vary based on Lottery results; Lottery applicants are not guaranteed to receive a PAB reservation during a program year.
Applicants who seek a PAB issuance but do not wish to participate in the 2025 Lottery should contact Housing Dept. staff directly.
Current and Past Private Activity Bonds and Low-Income Housing Tax Credit Resolution Applications
Resolution applications for Pricate Activity Bonds and Low-Income Housing Tax Credit funding are available on the Application Listing Webpage. Visitors to the site can review the submitted applications and provide comments.
Community Housing Development Organizations (CHDOs)
Community Housing Development Organizations (CHDOs) are non-profit affordable housing organizations recognized by the U.S. Department of Housing and Urban Development (HUD) to qualify for pre-development loans and be eligible for operating expense grants to develop affordable housing for the community it serves.
- CHDO Applications & Guidelines