Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.
Impact
With the enactment of HB 663, the eligibility criteria for low income housing tax credits are refined to specifically include developments that are at-risk. This bill directly alters Chapter 2306 of the Government Code to expand the definition of at-risk developments. This includes those that have received previous federal assistance and are in danger of losing their affordability provisions, making it crucial for both preserving existing affordable housing and supporting the renovation or reconstruction efforts of older housing units. It is aimed at keeping the same properties accessible and financially viable for low-income households, thereby leveraging federal programs to bolster local housing markets.
Summary
House Bill 663 relates to the eligibility of certain at-risk developments for receiving low income housing tax credits. The legislation is designed to aid housing developments that offer affordability to low-income families by allowing specific properties—deemed at-risk due to their status and the nature of their federal assistance programs—to qualify for these tax credits. The intent behind this bill is to ensure that these properties remain affordable as existing subsidy contracts expire or as housing units near market rate conversion, thereby preventing any potential displacement of low-income tenants.
Sentiment
The sentiment surrounding HB 663 appears to be largely supportive, particularly among advocates for low-income housing and community development organizations. Supporters argue that the revisions to the tax credit eligibility criteria will facilitate greater access to affordable rental units, while also encouraging investment into the rehabilitation of existing properties at risk of displacing tenants. However, there might also be an underlying concern from some stakeholders about the balance between the need for affordable housing and the potential impacts on local communities if such developments are prioritized without adequate safeguards or complementary community investments.
Contention
Notable points of contention regarding HB 663 may arise from debates about the allocation of resources and priorities within housing policy. While the attempt to revitalize at-risk developments is commendable, some may question the effectiveness of tax credits in achieving lasting impacts on affordability and whether other policy measures may be needed in conjunction with fiscal incentives. Moreover, discussions around how these tax credits will be administered and monitored could also feature prominently, especially regarding local control and the engagement of communities in the development process.
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.