Texas Senate Bill SB1278

Texas 2019 - 86th Regular

Caption

Relating to provisions applicable to affordable housing located in a reinvestment zone in certain areas of the state; authorizing a fee.

Impact

Key aspects of the legislation require that a minimum of 20% of the revenue generated from the tax increment fund in these zones be allocated specifically for the development and preservation of affordable housing. Of this portion, at least 75% must benefit families earning at or below 60% of the area's median income. This approach aims to mitigate income inequality and promote inclusive communities by ensuring that affordable housing development is prioritized within economically disadvantaged areas.

Summary

Senate Bill 1278 aims to enhance provisions related to affordable housing within designated reinvestment zones in Texas. The bill mandates that municipalities must prepare an affordable housing impact statement before adopting an ordinance for the establishment of such zones. This statement is intended to be publicly available at least 60 days prior to any required hearings, providing transparency regarding the potential effects on affordable housing availability for up to 30 years after the zone's designation.

Contention

Despite its intentions, SB1278 has encountered some points of contention, particularly regarding its potential administrative burdens on municipalities and the feasibility of its requirements. Critics may argue that while the goals of increased housing availability and addressing poverty are commendable, the actual implementation and regulatory oversight could strain local government resources. Additionally, concerns arise about the possibility of developers opting to pay fees instead of strictly adhering to the set-aside requirements, which could undermine the bill’s effectiveness in advancing affordable housing initiatives.