City of Fort Worth, TX

11/13/2024 | Press release | Distributed by Public on 11/13/2024 05:07

Council greenlights proposed changes to Housing Tax Credit policy

Council greenlights proposed changes to Housing Tax Credit policy

Published on November 13, 2024

The City of Fort Worth is aiming to make it easier for developers to create or improve affordable housing through updates to its Housing Tax Credit (HTC) guidelines. Councilmembers unanimously voted to approve the proposed revisions at yesterday's Council meeting.

What are HTCs? HTCs are a federal incentive aimed at boosting affordable housing by helping private developers cover some of the costs. In Texas, the Texas Department of Housing and Community Affairs (TDHCA) manages the allocation of these credits.

Developers can apply for two types of HTCs for cost reductions on projects:

  • 9%: Reserved for new projects, requiring a formal application and municipal support.
  • 4%: Easier to obtain, often used for renovations or smaller projects.

Here in Fort Worth, developers must apply through TDHCA and meet certain local standards set by the City to qualify for an HTC.

Breakdown of the HTC changes:

  • Hold harmless zoning letter: Developers must now contact the Development Services Department directly to request this letter. Requests made after the submission deadline will not be honored.
  • Expanded community notifications: Developers will now need to notify neighborhood alliances, in addition to homeowners associations and neighborhood associations, to ensure more residents are informed about new projects.
  • Faster developer introductions: The City's Community Engagement Office will now respond to developers within one week instead of two, allowing them to schedule information sessions sooner.
  • Rolling applications for 4% credits: Instead of quarterly deadlines, developers can now submit 4% HTC applications anytime throughout the year.

Important dates on the calendar

  • City notification deadline: To meet the City's notification requirements, developers seeking 9% credits must submit their applications by Jan. 3, 2025.
  • Information sessions: All required information sessions must also be held by Jan. 3, 2025.
  • Staff recommendations: City staff will present recommendations for HTC applications during the City Council work session on Feb. 4, 2025.
  • City Council decision: Councilmembers will consider and approve resolutions for HTC applications at their meeting on Feb. 11, 2025.
  • Developer submission deadline: Developers must submit their applications for a competitive 9% HTC award by Feb. 28, 2025.

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