Texas Senate Bill SB1965

Texas 2015 - 84th Regular

Caption

Relating to low income housing tax credits awarded for at-risk developments.

Impact

The enactment of SB1965 will impact state laws relating to low income housing tax credits, with a particular focus on ensuring that financial support is directed towards developments that are at risk of losing affordability. By redefining at-risk criteria, the law aims to enhance the preservation of affordable housing across Texas, filling a gap in previously established policies. This change is critical as it addresses the ongoing housing affordability crisis, ensuring that communities continue to receive support for essential housing solutions.

Summary

Senate Bill 1965 addresses the awarding of low income housing tax credits specifically for at-risk developments. The bill redefines what constitutes an 'at-risk development' by including those that have previously received various forms of federal subsidies and are nearing the end of their affordability stipulations or mortgage terms. It also sets forth criteria for housing units owned by public housing authorities that are subject to rehabilitation or reconstruction, particularly those that have been disposed of or demolished recently.

Contention

While proponents of SB1965 argue that the expanded definitions and support for at-risk developments are vital steps towards maintaining affordable housing, there may be concerns about the adequacy of funding and resources for these initiatives. Critics may raise issues regarding the potential administrative complexities that could arise from the new criteria and whether they could delay the timely awarding of tax credits. Furthermore, the effectiveness of these measures in genuinely preserving affordable housing will likely become a key focal point in future discussions around this legislation.