Relating to the allocation of housing tax credits to developments within proximate geographical areas.
In terms of impact on state laws, HB1295 modifies Section 2306.6711 of the Government Code, which governs the allocation of housing tax credits. By enabling the allocation of credits in closer proximity than previously allowed, the bill opens up opportunities for housing development in urban areas that are experiencing rising property values. This change could lead to a concentration of development efforts in areas deemed high-value for investment, which may help in addressing housing shortages in populous counties.
House Bill 1295 specifically addresses the allocation of housing tax credits, focusing on developments within geographically proximate areas. The bill allows for more than one development to receive housing tax credits in a single community under certain conditions defined in the bill. Notably, it requires that at least one development be located in a census tract where the median value of owner-occupied homes has seen a significant increase of 15 percent or more over the past five years. This proposal aims to incentivize development in areas experiencing growth, potentially aiming at urban revitalization and economic stability.
There may be some contention surrounding the bill, particularly regarding how this legislation influences local governance and community needs. While supporters will likely argue that the bill helps catalyze housing development in economically improving areas, critics may express concern that such regulations could favor developers and increase housing costs in already gentrifying neighborhoods. Deliberations could also arise over the necessity of the resolutions from municipal or county governing bodies, which add a layer of local control but may be seen as bureaucratic hurdles in some instances.