Relating to the allocation of low income housing tax credits.
The bill is poised to significantly change how low income housing tax credits are allocated in Texas by removing educational quality as a criteria for scoring applications. By preventing the department from using such criteria, the bill may facilitate increased access to tax credits for developers, potentially leading to more affordable housing projects statewide. However, this change could also provoke discussions about the correlation between neighborhood schools and housing quality, raising concerns that families may be drawn to areas with better educational options.
SB2137 focuses on the allocation of low income housing tax credits by amending the Government Code to restrict the conditions under which a public school campus's educational quality can influence the allocation process. It specifies that the Texas Department of Housing and Community Affairs (TDHCA) cannot require certain educational quality criteria as part of the threshold for a qualified allocation plan. This aims to ensure that the allocation of tax credits will not be adversely affected by the educational performance of schools in the vicinity of proposed developments.
Notable points of contention related to SB2137 center around the implications of disassociating housing development from educational quality indicators. Supporters argue that the bill is a necessary reform to avoid discrimination against certain low income housing projects based on school performance, while critics may express concerns over the long-term consequences on community development and educational standards. The expiration of the new provisions in 2027 marks a point for future legislative reassessment, which may elicit further debate regarding the balance between affordable housing needs and quality education.