Texas House Bill HB1194

Texas 2019 - 86th Regular

Caption

Relating to the exemption from ad valorem taxation by a school district of certain property used to build low-income housing.

Impact

If enacted, HB1194 has the potential to significantly impact state laws concerning property taxes and low-income housing. This legislation would amend several existing provisions in the tax code, effectively creating a new pathway for developers to create affordable housing projects while alleviating their financial burden. Such exemptions would not only encourage the construction of new homes but may also stabilize the housing market within communities that are often affected by high property tax rates. The bill reinforces the state's commitment to addressing the pressing need for affordable housing solutions.

Summary

House Bill 1194 proposes amendments to the Texas Tax Code to exempt certain property used for low-income housing from ad valorem taxation by school districts. The primary intention behind this bill is to encourage the development of affordable housing options in both urban and rural areas by providing tax relief to developers. Specifically, the bill applies to properties located within a one-mile radius of a school district's campus or within a municipal management district. It sets forth eligibility criteria whereby the housing developed must cater to individuals and families earning no more than 25 percent of the area median income.

Contention

Despite its good intentions, HB1194 may face scrutiny regarding the criteria set forth for tax exemption, particularly the income limitations that could restrict which families benefit from such housing developments. Critics may argue that these strict parameters could limit the effectiveness of the bill, as developers seek to maximize their investment while navigating the requirements. Moreover, concerns about the potential loss of tax revenue for school districts could arise, prompting discussions on how to balance the needs for affordable housing with the financial obligations of maintaining educational funding. The bill's eventual approval may hinge on how lawmakers address these competing interests.