June 1st, 2012
Developers from across the country are in a Lone Star state of mind this year.
Drawn by a large pool of low-income housing tax credits (LIHTCs) and strong demographics, they have their sights set firmly on building in Texas.
Miami-based Pinnacle Housing Group opened an Austin office last year. Columbus, Ohio-based National Church Residences (NCR) opened a San Antonio office two years ago. And, several other developers are also making a big push in the state.
The overall strong interest can be seen in the large number of LIHTC applications this year. The Texas Department of Housing and Community Affairs (TDHCA), the agency that oversees the financing program, received a whopping 388 pre-applications for credits this year, a 55 percent spike from the year before. However, the number continuing to the full application stage has dropped to 162.
In addition to the state’s roughly $55 million in annual LIHTC authority, developers also like the state’s demographics, led by a fast-growing population of 25.7 million and counting.
Texas gained more people than any other state between April 1, 2010, and July 1, 2011, according to the Census Bureau, which reported that the state’s population grew by 529,000 people during that period.
Four large metro areas were among the 20 fastest growing from 2010 to 2011: Austin (2nd), San Antonio (16th), Dallas-Fort Worth (17th), and Houston (18th).
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