Relating to the allocation of housing tax credits to developments within proximate geographical areas.
Summary
SB 2549 would change how the Texas Department of Housing and Community Affairs may award low-income housing tax credits to multiple developments in the same community. Under current law, the board may generally allocate credits to more than one development in a single community in the same year only if the projects are more than two linear miles apart. The bill keeps that rule but limits it to communities in counties with populations over one million and preserves an exception for rehabilitation of existing affordable, rent-restricted units.
The bill also delays implementation until applications submitted in an application cycle based on the 2026 qualified allocation plan or later. Applications filed under earlier cycles would continue to be governed by existing law. The measure would take effect September 1, 2025, if enacted.
Impact
The bill would amend Section 2306.6711(f), Government Code, narrowing the geographic restriction on multiple housing tax credit awards to large counties and clarifying that rehabilitation projects are exempt from the distance requirement. In practical terms, it would affect how the state allocates low-income housing tax credits in major metropolitan areas, potentially influencing where affordable housing developments can be financed and built within the same community.
Sentiment
The available legislative history suggests the bill was somewhat supported in committee but not broadly advanced afterward. It was reported adversely with a favorable committee substitute by a 6-1 vote, indicating majority support for the substitute language but at least one dissenting view. The bill later stalled and was not again placed on the intent calendar, suggesting limited momentum despite committee approval.
Contention
The main point of contention appears to be the policy choice of restricting or allowing multiple tax credit developments in close proximity within large counties. Supporters likely viewed the bill as a way to manage concentration of subsidized housing and preserve geographic distribution, while opponents may have been concerned that the restriction could limit affordable housing production in high-need urban areas. The exemption for rehabilitation of existing affordable units suggests some agreement that preservation projects should not be constrained in the same way as new construction.
Relating to a set-aside of low income housing tax credits for at-risk housing developments and to the allocation of housing tax credits to those developments and certain other developments.