West Davis Senior Apartments seeks 2026 low-income housing tax credits from the state housing agency
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Overview
Updated 2 hours agoDallas city council members will hear public comments Wednesday on a proposed 280-unit apartment complex for low-income seniors in West Dallas. The developer, Dallas Leased Housing Associates XIV, LP, wants the state to award it 2026 low-income housing tax credits to help pay for the project, called West Davis Senior Apartments.
The hearing is a required community-input step in the federal Low Income Housing Tax Credit program, the country's main tool for building affordable rental housing. In Texas, the Texas Department of Housing and Community Affairs (TDHCA) decides who gets the credits. The 4% 'non-competitive' credits the developer seeks are paired with tax-exempt bond financing and are generally easier to obtain than the larger, competitive 9% credits.
Why it matters
Dallas has a chronic shortage of affordable senior housing; this project adds 280 below-market units if the state approves the credits.
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Organizations Involved
The entity applying to TDHCA for tax credits to build West Davis Senior Apartments.
Texas' state housing agency, responsible for allocating federal low-income housing tax credits to developers.
The 15-member elected body receiving public comments on the proposed project.
Timeline
September 2026 December 2026
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TDHCA allocation decision window expected
Upcoming DecisionState housing agency expected to decide on awarding 2026 4% credits to the project.
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Council holds public hearing on 280-unit senior project
Upcoming Public HearingCouncil receives comments on Dallas Leased Housing Associates XIV's request for 4% non-competitive tax credits.
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Dallas posts agenda with hearing on West Davis credits
Today AgendaCity publishes agenda listing a Sept 9 public hearing on the LIHTC application for West Davis Senior Apartments.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
Section 202 program established (1964)
Congress created Section 202, the first federal program aimed specifically at building rental housing for low-income seniors. It provided direct capital grants and rental subsidies to nonprofit developers.
Nonprofits built thousands of senior units across the country over the following decades.
Funding for new Section 202 construction was largely phased out after the Housing and Economic Recovery Act of 2008, shifting senior housing production toward LIHTC and other market-based tools.
West Davis Senior Apartments targets the same population Section 202 once served, but it relies on today's tax credit mechanism instead of direct federal grants.
Tax Reform Act of 1986 (October 1986)
Congress created the Low Income Housing Tax Credit as part of a sweeping tax overhaul. The program gives developers a dollar-for-dollar federal tax credit over 10 years in exchange for renting to low-income tenants at restricted rates.
States began allocating credits through their housing finance agencies, with Texas's TDHCA taking that role.
LIHTC became the primary federal mechanism for building affordable rental housing, financing roughly a third of all new affordable units nationwide since 1987.
The credits West Davis Senior Apartments is seeking come from this program. The 4% non-competitive credit structure was added in 1989 for projects that also use tax-exempt bonds.
The Humphreys PFC deal, Dallas (2025)
The Dallas Public Facility Corporation acquired and leased a 322-unit mixed-income development at 5339 Alpha Road, entering a 75-year lease with developer Ethos Property Development. The structure forgoes roughly $127 million in property taxes over 75 years to make rents affordable.
The project moved toward construction with city backing, one of several Dallas affordable housing deals using public facility corporations and tax incentives.
It became a template for Dallas using local tools to push affordable units forward, alongside state LIHTC allocations.
The Humphreys deal shows Dallas' recent pattern of combining local tax incentives with state LIHTC and bond financing to produce affordable housing, the same path West Davis Senior Apartments is attempting.
