Texas House Bill HB 293

Texas 2025 - 89th Regular

• Filed: 11/12/24
• Out of House Committee: 5/20/25

Caption

Relating to the requirements for applications for low income housing tax credits for developments financed through the private activity bond program.

Summary

HB 293 changes the application process for low-income housing tax credits when a proposed development is financed through the private activity bond program. Under current law, applicants must give notice to certain local officials before filing; this bill adds a new notice requirement to the state representative for the district where the project would be located. It also creates a new veto-like condition: even if the applicant satisfies the existing local notice and resolution requirements, the Texas Department of Housing and Community Affairs may not approve the application if the district’s state representative submits a letter opposing the development. The bill applies to applications submitted in cycles based on the 2026 qualified allocation plan or later. Earlier application cycles remain governed by prior law. In practical terms, the measure gives a state legislator direct influence over whether a housing tax credit application tied to private activity bonds can move forward, alongside the existing roles of municipalities and county commissioners courts.

Impact

HB 293 amends Section 2306.67071 of the Texas Government Code, which governs additional application requirements for low-income housing tax credit developments financed through the private activity bond program. It expands the required notice recipients to include the local state representative and authorizes the Texas Department of Housing and Community Affairs to reject an application based on a written objection from that representative. The bill affects developers seeking housing tax credits, local governments, and the department’s approval process, and it changes the balance of decision-making by adding a state legislative objection mechanism to an area previously driven primarily by local notice and resolutions.

Sentiment

The available record shows no committee transcript or recorded floor debate, and there are no listed votes in the provided materials. Based on the bill’s progression out of committee and report to Calendars, the measure appears to have advanced without documented public controversy in the supplied context. The bill’s structure suggests support from sponsors interested in increasing legislative oversight of affordable housing projects, while the absence of recorded opposition in the materials prevents a more specific assessment of sentiment.

Contention

The main point of contention inherent in the bill is the new authority it gives to a state representative to block a housing tax credit application by submitting an opposition letter, even when the applicant has complied with existing notice and local approval requirements. Supporters would likely view this as added accountability and constituent representation for developments financed through private activity bonds, while opponents could see it as an additional political hurdle that may delay or prevent affordable housing projects. The bill also potentially shifts influence away from local governing bodies and toward an individual legislator, which could be controversial among housing advocates, developers, and local officials.