Developers can negotiate tax abatements up to 100% with Texas public housing authorities, though deals typically settle at 70-80% because authorities want compensation. The Low-Income Housing Tax Credit programs, split into competitive 4% and 9% tiers, move billions annually in affordable housing finance.
And if you partner with a public housing authority, you can get 100% tax abatement in Texas. So you have a lot of LIHTC developers that partner with housing authorities and nonprofits. And there's a couple of other structures that you can also partner with to get those abatements. You don't realize 100% of the tax payment because they are part of the deal. They, you know, they're going to want some involvement. They're going to want to be compensated also. So instead of getting 100%, you may get 80% tax payment, 70%, whatever you negotiate. But still, that's a big savings for the property, for the operations. Well, the 9% program, which is the competitive— oh, it's these— this program, the 4%, 9%, and the 4%, 9%, it's a multi-billion dollar program that we administer annually.
