Low Income Housing Tax Credit Program
The Low Income Housing Tax Credit (LITHC) program is an indirect Federal subsidy that started in 1986, under § 42 of the Internal Revenue Code, 26 U.S.C. § 42 as a market based incentive to encourage private investment & development of affordable rental housing. In Texas, the program is administrated by the Texas Department of Housing & Community Affairs (TDHCA).
Each year TDHCA allocates tax credits in a competitive process that ensures fair distribution based on a regional allocation formula and a legislatively prescribed scoring system. Tax credits are awarded by the TDHCA based on regions. The City of Killeen is in Region 8, in the urban sub-region. Points are available to developers for securing a resolution of local government support and possible local government commitment of funding.
The Killeen City Council has developed a policy and application process to review all tax credit proposals coming before the governing body for Resolutions of Support or Resolutions of No Objection. The policy includes an established set of criteria to be used when considering local support. All criteria is listed in the application. The application is a PDF fillable document. All applications are due to the City by 1/7/22. For questions related to this program, please contact Leslie Hinkle, Executive Director of Community Development – 254-501-7847 or via email at firstname.lastname@example.org
Housing & Urban Development (HUD) Grant Programs
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to:
- Build inclusive and sustainable communities free from discrimination
- Meet the need for quality affordable rental homes
- Strengthen the housing market to bolster the economy and protect consumers
- Utilize housing as a platform for improving quality of life
- Transform the way HUD does business
Get more information about HUD and its' programs on the U.S. Department of Housing and Urban Development website, Facebook, or sign up for HUD News.
Community Development Block Grant (CDBG)
The CDBG program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at the Department of Housing and Urban Development (HUD). The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended; 42 U.S.C.5301 et seq.
The CDBG program provides annual grants on a formula basis to general units of local government and States. The annual CDBG appropriation is allocated between States and local jurisdictions called “non-entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute their CDBG funds to non-entitlement localities not qualified as entitlement communities.
HUD determines the amount of each grant [entitlement amount] by using a formula based distribution system comprised of several measures of community need, including the:
- Age of housing
- Extent of poverty
- Housing overcrowding
- Population growth lag in relationship to other metropolitan areas
The City of Killeen is an “entitlement” community.
Benefits of CDBG
CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. For over 40 years, the CDBG program has made a difference in the lives of millions of people and their communities across the Nation principally by assisting to low- and moderate-income persons and families.
Home Investment Partnerships Program (HOME)
The HOME Program was created by the National Affordable Housing Act of 1990, (under Title II - the Home Investment Partnerships Act). This Act represents affirmation of the Federal government's commitment to providing decent, safe, and affordable housing for all Americans and to alleviating the problems of excessive rent burdens, homelessness, and deteriorating housing stock nationwide.
Eligible entities such as community housing development organizations, subrecipients, developers, owners and sponsors are encouraged to apply for HOME funds. All City of Killeen HOME program funds are allocated through a competitive process. (see Community Planning Meetings and Applications for Funding)
One of the goals of the HOME Program is to establish strong public/private partnerships. This requires the City as well as eligible entities to make all reasonable efforts to maximize participation by private lenders and other members of the private sector. [The Community Reinvestment Act (CRA) requirements provide an incentive to private lending institutions to become involved in HOME Program activities].
Objectives of the HOME Program
- Leverage private-sector participation
- Provide decent affordable housing to lower-income households
- Removal of physical barriers in housing for individuals with disabilities
- Strengthen the ability of State and Local governments to provide housing