Texas House Bill HB1604

Texas 2021 - 87th Regular

Caption

Relating to requirements for beneficial tax treatment related to a leasehold or other possessory interest in a public facility used to provide affordable housing.

Impact

The bill's implementation is proposed to impact the Local Government Code, specifically through amendments to Section 303.042. Under the new requirements, developments seeking tax exemption must reserve at least 50% of their units for individuals and families earning less than 80% of the area median income, directly facilitating access to housing for lower-income groups. Moreover, a provision specifically forbids operators from denying rentals to individuals or families participating in the federal Section 8 Housing Choice Voucher Program, thus aiming to promote inclusivity in housing.

Summary

House Bill 1604 focuses on enhancing requirements for obtaining beneficial tax treatment related to leasehold or possessory interests in public facilities utilized for affordable housing. This legislation seeks to set specific criteria regarding multifamily residential developments that wish to qualify for tax exemptions. By mandating that a significant portion of these units must be set aside for low-income families, the bill aims to encourage the development of affordable housing options in the state of Texas.

Contention

Although the bill is designed to promote affordable housing, there might be concerns regarding the viability and economic feasibility for developers. Critics could argue that the stringent requirements for income-based unit reservations may deter potential investments in housing projects, leading to fewer developments overall. Additionally, there may be debates about the regulation of rental practices, particularly concerning the implications of mandating that owners cannot refuse rentals based on Section 8 participation, which some stakeholders might view as overreach.