Hutto City Council is expected to consider a resolution related to a low-income housing proposal called Carver Ridge Apartments, according to city documents, at its Feb. 20 meeting. If approved, the proposed apartments would be located south of CR 137 and FM 1660 and would bring 72 affordable apartment units to the city, according to city documents.
Carver Ridge Apartments LP proposed the apartments to the city. The developers plan to submit an application to Texas' Department of Housing and Community Affairs for consideration of the 2020 Competitive 9% Housing Tax Credits, per city documents. The low-income housing tax credit—or LIHTC—program is aimed at encouraging developers to create or rehabilitate affordable housing, according to city documents, and is awarded through an application process.
According to the Texas State Affordable Housing Corp., there are two types of housing tax credits issued: 9%, or competitive, tax credits, and 4%, or noncompetitive, tax credits. Competitive tax credits are commonly issued to the construction of new affordable housing developments, while noncompetitive credits are issued to the rehabilitation of existing affordable housing, per the TSAHC.
The LIHTC program subsidizes either 30% or 70% of unit costs in a project. The 30% subsidy applies to noncompetitive projects with a 4% tax credit and helps to cover rehabilitation efforts. The 70% subsidy is used on competitive projects with a 9% tax credit that constructs new developments without additional federal subsidies, according to the TSAHC.
