The Amarillo City Council on Tuesday, Feb. 10 unanimously approved resolutions supporting four proposed affordable and workforce housing developments across the city, a move that allows developers to seek state tax credits for the projects. If the developments receive funding through the state’s competitive process, they could add more than 275 rent-restricted units in multiple areas of Amarillo.
The council’s action does not allocate city funding to the projects. Instead, it provides the formal resolution of support required for developers to apply for 9% housing tax credits through the Texas Department of Housing and Community Affairs (TDHCA). Those credits are part of a competitive state program designed to encourage the construction and preservation of affordable rental housing.
City officials emphasized that the resolutions are procedural and necessary for developers to move forward in the state approval process.
“We had four different locations that came before us, and they need to ask for the city as a body to more or less endorse and approve their request,” Mayor Cole Stanley said after the meeting. “That request then goes to the state for housing tax credits, and that allows for those property owners to discount the rents.”
Councilmember Don Tipps, Place 2, also underscored that the funding mechanism does not involve municipal tax dollars.
“When we heard the 9% funding, it doesn’t come from us. It doesn’t come from the city,” Tipps said. “This is a need that we have throughout the city.”
The four proposed developments are planned near Bell Street and Southwest Ninth Avenue; Southwest 45th Avenue and South Coulter Street; Southeast 28th Avenue; and Southeast 34th Avenue and Ross Street. By distributing the projects across different parts of Amarillo, the developments would not be concentrated in a single neighborhood if approved by the state.
According to project details presented to the council, the development near Bell Street and Southwest Ninth Avenue is estimated to cost approximately $21 million and would include 85 workforce housing units. A second project near Southwest 45th Avenue and South Coulter Street is also projected at about $21 million and would include roughly 73 units.
The development planned for Southeast 28th Avenue carries an estimated cost of nearly $19 million and would provide 60 workforce units. The fourth project, near Southeast 34th Avenue and Ross Street, is expected to cost around $21 million and include 60 units.
Together, the four projects represent a combined investment of more than $80 million in housing construction, contingent on the award of tax credits by the state.
Tipps said the developments are designed to serve working- and middle-income residents, including those who may not qualify for traditional housing assistance programs but who are facing challenges due to rising housing costs.
“It just helps out. It helps that middle America to come in and be able to get housing and get on their feet,” he said.
He also noted broader economic pressures affecting residents. “Everything is so expensive, people are struggling. When the need is there, we want to be able to provide some options. You know, the housing is still being built and some other things. It just helps out; it helps that middle America to come in and get housing and get on their feet,” Tipps said.
The 9% housing tax credit program is one of the primary tools used by TDHCA to finance affordable rental developments across Texas. Developers compete for the credits, which can then be sold to investors to generate equity for construction. In exchange, properties must meet income restrictions and maintain rent limits for a set period of time.
Mayor Stanley said affordable housing remains an ongoing issue in Amarillo and in other communities, particularly as construction expenses continue to rise.
“Affordable housing has always been a problem. It will always be a problem, especially as construction costs continue to increase,” Stanley said. “The more we can incentivize and work along with our state and federal authorities, the easier it will be for those people that are blue-collar workforce income to be able to keep those rent rates low.”
The council’s approval represents an early step in the process. A second reading of the housing resolutions is expected at a future council meeting before developers formally submit their applications to the state. Once final approval is granted by the council, applicants can proceed with their request for 2026 competitive 9% housing tax credits through TDHCA.
If the state awards the credits, construction timelines and additional project details would likely be finalized in subsequent phases. For now, city leaders say their role is limited to providing the required resolution of support to allow the proposals to compete at the state level.
