Senior Apartments which have'income guidelines
are simply apartments priced to fit most budgets of older adults
on fixed incomes. In exchange, all or a portion of the
apartments are set aside for low- or fixed-income tenants. Your
eligible income and your rent will be based on the average
income for the area where you live. Many LIHTC properties are
operated as 55+ or 62+ communities, or senior apartments.
adults live on limited incomes, therefore, finding a nice,
clean, and safe apartment community that fits within their
budget is essential. Many apartment communities offer lovely
apartments that seniors find most affordable that do not have
any 'income guidelines'. They are simply
apartments priced to fit most budgets of older adults.
Then there are senior apartments that fall under the the Housing Tax Credit (HTC) Program,
is not a subsidy program, but does have strict 'income
restrictions and guidelines" they must follow when leasing. Each
community has their own set of income guidelines so you need to
The HTC program is the primary
means of directing private capital towards the creation of
affordable rental housing. The tax credits provide developers of
low income rental housing with a benefit, which is usually sold
to an investor and used to offset a portion of their federal tax
liability, in exchange for the production of affordable rental
The value associated with the tax credits allows residences in HTC
developments to be leased to qualified persons at rents that are
often below market rates. The HTC program only addresses Federal
taxes; HTC developments pay the normal state and local property and
sales taxes unless they are specifically granted abatement by the
local taxing jurisdiction.
Housing Tax Credits are awarded
annually by the Texas Department of Housing and Community Affairs.
Since there are many more applicants than there are available tax
credits, the TDHCA utilizes a competitive process in which all
applicants are given a score based on the quality of their product,
amenities offered, local support, and other factors. This process is
very competitive, and only a fraction of those applying for HTC will
actually receive an allocation.
A major difference between residents in
subsidized housing, versus residents in an HTC community, is that
HTC residents pay their own rent, and are subject to income
verification and credit checks to ensure that they can pay the rent.
Additionally, prospective residents must submit to
a criminal history check. An additional requirement of the HTC
program which benefits local residents comes in the form of units
that are more accessible to the disabled. In addition to making all
ground-floor units adaptable for people with disabilities, a minimum
of 5% of units are fully outfitted for those with mobility
impairments (typically wheelchair-bound) and an additional 2% of
units are equipped for those with hearing or visual impairment. This is especially important in smaller communities where these
resources often do not currently exist.
Income Guidelines vs. Variable Pricing Structure
Income Guidelinesapply to affordable housing which can vary from 30 – 40 -50 - 60% of
the area median income in the specific city in which to property is
built. You need to determine which property and then that city has
its federally established guidelines, for which your monthly income
cannot exceed a certain amount, based on HH of 1 person or 2 persons
or 3 persons.
Variable Pricing Structure
meets the needs of BOTH affordable housing and
apartments that are offered on the same property. Market Rate units
have no maximum income guidelines, and usually have upgrades (marble
counter, upgraded sinks, tubs, hardware etc..) Be sure to check
with the property you're considering as they can give you the
specific guidelines for "affordable" or determine if market rate is
your best option.
tax credit apartments may only be claimed on the units that have
been set-aside for participation under this program. It is possible,
but not required, for development owners to set aside one-hundred
percent (100%) of any development for consideration under the tax
credit program and in doing so claim the maximum amount of tax
credits eligible for the development.
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