By: West S.B. No. 2549

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of housing tax credits to developments within proximate geographical areas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 2306.6711(f) and (f-1), Government Code, are amended to read as follows:

(f) Except as provided by Subsection (f-1), the board may allocate housing tax credits to more than one development in a single community, as defined by department rule, in the same calendar year only if the developments are or will be located more than two linear miles apart. This subsection applies only to communities contained within counties with populations exceeding one million. This Section does not apply to developments that involve the rehabilitation of existing affordable, rent-restricted developments.

(f-1) The board may allocate housing tax credits to more than one development in a single community only if:

(1) the community is located in[:

[(A)] a municipality with a population of 750,000 [two million] or more; and

[(B) an area that is a federally declared disaster area; and]

(2) the governing body of the municipality containing the development[:

[(A)] has by vote specifically authorized the allocation of housing tax credits for the development[; and

[(B) is authorized to administer disaster recovery funds as a subgrant recipient].

SECTION 2. The change in law made by this Act applies only to an application for low income housing tax credits that is submitted to the Texas Department of Housing and Community Affairs during an application cycle that is based on the 2026 qualified allocation plan or a subsequent plan adopted by the governing board of the department. An application that is submitted during an application cycle that is based on an earlier qualified allocation plan is governed by the law in effect on the date the application cycle began, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.