Tax credit housing concentrated in low-income areas

To boost the supply of affordable housing, the Texas Department of Housing and Community Affairs can award federal income tax credits to developers who provide low-income housing. There are two types of tax credits, 4 percent and 9 percent, and the housing can be for the general population or designated for the elderly.

A federal lawsuit about housing discrimination contended that too many of the 9 percent projects for the general population were being located in poor neighborhoods with high numbers of African-American and Hispanic residents. A proposed remediation plan could lead to more complexes in areas that are more affluent and diverse.