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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, Government Code, is amended |
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by amending Subsection (f-1) and adding Subsection (f-2) to read as |
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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 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 development is a high opportunity |
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development; |
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(B) the governing body of the municipality |
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containing the development has by a two-thirds vote specifically |
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authorized the allocation of housing tax credits for the |
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development; |
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(C) the development: |
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(i) is in a zoning district or land use |
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classification whereby the municipality allows multifamily |
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residential, mixed-use, office, commercial, retail, or warehouse |
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development; and |
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(ii) is not subject to a deed restriction or |
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regulation that prohibits multifamily residential, mixed-use, |
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office, commercial, retail, and warehouse development; and |
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(D) the development is located on a major |
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arterial roadway. |
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(f-2) For purposes of Subsection (f-1), "high opportunity |
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development" means a development that is located entirely in: |
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(1) an area that allows the development to receive the |
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maximum possible points for the opportunity index established by |
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the department pursuant to 26 U.S.C. Section 42(m)(1)(C)(i); |
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(2) a census tract with a poverty rate that is less |
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than the greater of: |
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(A) 20 percent; or |
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(B) the median poverty rate among census tracts |
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in the uniform state service region; and |
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(3) a census tract that has: |
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(A) a median household income in the two highest |
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quartiles among census tracts within the uniform state service |
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region; or |
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(B) a median household income in the third |
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quartile among census tracts within the region, if: |
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(i) the census tract is contiguous to a |
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census tract that: |
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(a) is in the first or second quartile |
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among tracts for median household income in the region; and |
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(b) has a poverty rate that is less |
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than the greater of 20 percent or the median poverty rate among |
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tracts for the region; and |
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(ii) the development is located not more |
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than two miles from the boundary between the census tract and the |
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contiguous census tract described by Subparagraph (i). |
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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. |
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* * * * * |