Texas House Bill HB470

Texas 2021 - 87th Regular

Caption

Relating to a right of first refusal applicable to the sale of housing developments that have received certain financial assistance administered by the Texas Department of Housing and Community Affairs.

Impact

The implications of HB 470 are significant in terms of housing policy in Texas. By mandating that developments under certain financial assistance programs grant a right of first refusal, this bill seeks to enhance affordability and availability of housing for low-income families by potentially facilitating ownership transitions to community-oriented entities. The bill applies to applications for low-income housing tax credits submitted after the enactment, thus offering new dynamics around the allocation of such credits aimed at fostering community ownership.

Summary

House Bill 470 aims to establish a right of first refusal applicable to the sale of housing developments that have received specific financial assistance from the Texas Department of Housing and Community Affairs. This bill introduces changes to the Government Code, particularly regarding the allocation of housing tax credits and the incentives provided to development applicants. The legislation particularly focuses on ensuring that qualified entities, such as community housing development organizations, have a chance to purchase these units before they are sold on the open market.

Contention

Notably, the bill could spark discussions around the balance between encouraging private investment in housing and ensuring that such investments do not displace existing low-income tenants. Critics may argue that while the bill promotes community ownership, it could also limit the options available to current property owners wanting to sell their developments. Furthermore, concerns may arise about the effectiveness of these first refusal rights in practice, particularly if the financial mechanics behind them do not adequately incentivize qualified entities to act on their rights.