Relating to provisions applicable to affordable housing located in a reinvestment zone in certain areas of the state; authorizing a fee.
The legislation stipulates that 20% of the revenue collected from the tax increment fund of the reinvestment zone should be allocated annually for the development, construction, and preservation of affordable housing within the zone and its adjacent areas. Moreover, at least 75% of this allocation must specifically benefit families earning at or below 80% of the area median family income. Importantly, the bill allows municipalities to impose fees on developers in lieu of meeting the affordable housing set-aside requirements, directing those funds into an affordable housing fund for local use.
House Bill 467 addresses provisions related to affordable housing situated within reinvestment zones in Texas. The bill mandates that municipalities, before designating new reinvestment zones, must prepare an affordable housing impact statement. This statement needs to outline the expected impacts on affordable housing availability over the next thirty years and must be publicly accessible for at least 60 days prior to a public hearing on the designation. This requirement is intended to ensure that municipalities consider the long-term effects of their zoning decisions on housing affordability.
If enacted, HB 467 would significantly affect existing regulations governing reinvestment zones by establishing clearer expectations for affordable housing contributions. By requiring thorough assessments of potential impacts and dedicating a portion of tax increment funds to housing, the bill aims to enhance local efforts to provide affordable living options while also holding municipalities accountable for their urban planning decisions.
Notably, the bill has been subject to debate regarding the extent of its potential impact on local governance. Proponents argue that the bill provides essential support for affordable housing amid rising costs, thereby assisting low-income families in accessing necessary resources. However, critics of the bill contend that it may create inconsistencies in the enforcement of housing policies at the local level, arguing that the flexibility given to municipalities could lead to insufficient action in support of affordable housing developments.