Texas House Bill HB752

Texas 2015 - 84th Regular

Caption

Relating to the eligibility of property used for affordable housing for ad valorem tax benefits under the Texas Economic Development Act.

Impact

With this legislative change, properties classified as affordable housing could tap into tax benefits previously reserved for manufacturing and energy projects. This shift in policy is expected to encourage more investments in affordable housing, which has been a growing concern amid rising property prices and limited housing supply in urban areas. The bill's proponents argue that the positive economic impact of increasing affordable housing stock will lead to more stable communities and provide essential support for families who qualify under the income criteria established by HUD.

Summary

House Bill 752 seeks to amend the Texas Tax Code to include affordable housing as a property type eligible for ad valorem tax benefits under the Texas Economic Development Act. This inclusion is particularly significant as it allows property developers and owners of affordable housing projects to benefit from tax limitations that may facilitate the creation and maintenance of such housing. By broadening the eligibility criteria for tax benefits, the bill aims to stimulate growth in affordable housing initiatives across Texas, addressing a critical need for sustainable housing options for low- and moderate-income families.

Contention

Nonetheless, some legislators and watchdog groups express concern that while the bill aims to address affordable housing issues, it may not be sufficient to cope with the overall housing crisis. Critics argue that the focus on tax benefits alone may overlook other critical factors such as local zoning laws, construction costs, and income thresholds that could further hinder affordable housing development. Additionally, there may be worries that increased demand for these benefits could lead to unanticipated budget impacts on state and local tax revenues made on behalf of affordable housing developments.