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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of housing tax credits to developments |
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within proximate geographical areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6711(f-1), Government Code, is |
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amended to read as follows: |
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(f-1) The board may allocate housing tax credits to more |
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than one development in a single community: |
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(1) [only] if: |
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(A) [(1)] the community is located entirely in: |
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(i) [(A)] a municipality with a population |
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of two million or more; and |
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(ii) [(B)] an area that is in a federally |
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declared disaster area; and |
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(B) [(2)] the governing body of the municipality |
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containing the development: |
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(i) [(A)] has by vote specifically |
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authorized the allocation of housing tax credits for the |
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development; and |
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(ii) [(B)] is authorized to administer |
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disaster recovery funds as a subgrant recipient; or |
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(2) if: |
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(A) the community is located entirely in: |
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(i) a municipality; |
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(ii) a census tract with a poverty rate less |
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than the greater of 20 percent or the median poverty rate among |
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census tracts in the uniform state service region; and |
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(iii) an area that allows the development |
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to receive the maximum possible points for the opportunity index |
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established by the department pursuant to 26 U.S.C. Section |
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42(m)(1)(C)(i); and |
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(B) the governing body of the municipality |
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containing the development has by vote specifically authorized the |
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allocation of housing tax credits for the development. |
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SECTION 2. The change in law made by this Act applies only |
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to an application for low income housing tax credits that is |
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submitted to the Texas Department of Housing and Community Affairs |
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during an application cycle that is based on the 2026 qualified |
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allocation plan or a subsequent plan adopted by the governing board |
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of the department. An application that is submitted during an |
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application cycle that is based on an earlier qualified allocation |
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plan is governed by the law in effect on the date the application |
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cycle began, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |