Relating to the administration of the low income housing tax credit program.
One of the pivotal changes introduced by HB2297 is the annual adjustment of the maximum allocation of tax credits. Starting from 2012 and occurring every even-numbered year, the Texas Department of Housing and Community Affairs is now empowered to adjust this cap in accordance with fluctuations in the Consumer Price Index for All Urban Consumers (CPI-U). This adjustment mechanism aims to reflect economic realities and ensure that the allocation of tax credits remains relevant to current financial conditions.
House Bill 2297 relates to the administration of the low income housing tax credit program in Texas. This bill amends Section 2306.6711 of the Government Code, focusing on how housing tax credits are allocated. It introduces a cap on the amount of credits that may be allocated to an applicant during a single application round, ensuring that no applicant receives housing tax credits exceeding $3 million. The bill effectively sets a standard that the board must follow when issuing commitments for housing tax credits based, in part, on federal law and existing underwriting policies.
The bill's provisions could potentially lead to debates regarding the adequacy of funding for low income housing initiatives, especially in light of rising living costs. By tying the tax credit allocations to the CPI, the intent is to maintain consistency with inflation rates. However, there may be concerns from advocates for affordable housing regarding whether these measures will sufficiently meet the growing demand for low income units, particularly as housing market pressures continue to escalate. Additionally, questions may arise around the implications for local authorities managing housing needs within their communities.