The Texas Association of Community Development Corporations (TACDC) conducted a study to assess
the barriers that impede the development of affordable housing in rural Texas.  The study offers insight from practitioners in the field on their experience in rural Texas and provides policy recommendations for the Texas Legislature and U.S. Congress.

Pervasive poverty and the shortage of affordable dwellings in rural communities combine to make rural housing a particularly pressing concern. This report examines the fundamental components that constitute this issue, including: poverty and substandard housing; current rural policy; and construction costs in relation to income. Furthermore, this report assesses the partnership, structure and characteristics of relevant public, private and non-profit (independent) organizations and their efforts to address the housing needs of rural areas.

Today, a partnership between these sectors is the preferred methodology for working toward the creation of affordable housing for low-income Texans. In theory, this strategy should leverage the singular strengths of each contributing organization and engender a holistic set of solutions. However, in rural Texas, a lack of capacity permeates all levels of the partnership – and where levels of capacity are completely diminished, the partnership fails. This report includes recommendations to fortify the standing strategic partnerships so that rural residents, communities and community development corporations might take a turn toward true progress. Recommendations are placed in two categories, community development best practice recommendations and statutory or policy recommendations. These recommendations include:

Best Practice Recommendations for Community Development Practitioners

1. Develop partnerships between public, private, and independent sectors to help coordinate community development efforts.

2. Encourage and foster local and regional leaders in rural areas of the state.

3. Create and develop Regional CDCs that can act as mentors and partners to the local community development organizations.


Statutory/Policy Recommendations

1. Adapt federal and state definitions of homelessness – currently only counting those living on streets or shelters – for rural conditions. Present definitions may do an injustice to the rural condition and prevent rural communities from accessing federal funding to address the issue.

2. Encourage federal and state legislators to adopt a uniform definition for “rural.”

3. Develop a rural policy that establishes working partnerships with all the agencies and sectors involved in the development and welfare of rural Texas.

4. Attach linkage fees to subdivision development — or devise other methods — to increase funding for the state’s Housing Trust Fund. The Capacity Building Program receives 10% of the Housing Trust Fund’s annual allocation.

5. Explore the possibility of allocating Trust Fund dollars toward permanent financing efforts for very low income projects and toward providing sustainable administrative support for rural CDCs.

6. Obtain a modification from HUD to use the statewide average median income criterion for HOME funds instead of the county AMFI that unfairly penalizes rural counties.


The state of affordable housing in rural Texas is at a crossroads. There is a severe lack of capacity at the local level of small, rural communities. The Texas Department of Housing and Community Affairs has a vested interest in building the level of capacity within the communities it serves. The TDHCA states, in its Texas 2000 State of Texas Low Income Housing Plan and Annual Report:

Because the TDHCA is primarily a funding agency, capacity must exist at the local level for organizations to apply for and administer the various available programs. Leadership, expertise, and financial resources must be cultivated within rural communities. To accomplish this, a statewide rural policy must identify and implement network, programmatic, and resource support systems for the communities. Some of the strategies that could help to develop capacity in rural areas include: financial support through interim and pre-development loans and technology grants ensuring the existence of rural telecommunications. A rural policy would position CDCs to better serve their communities and, at the same time, increase networking between CDCs, intermediaries and the public and private sectors. The production of affordable housing for residents of rural Texas depends on it.

The full report of Making it work: Developing Affordable Housing in Rural Texas is available for purchase by the public, with discounts available to TACDC members.  To order, visit TACDC’s website please (www.tacdc.org) or call (512) 457-8232.