Texas House Bill HB280

Texas 2025 - 89th 1st C.S.

• Filed: 8/5/25

Caption

Relating to a prohibition on the allocation of low income housing tax credits for developments located in certain school districts.

Impact

The implications of HB 280 are significant for both low income housing strategies in Texas and the operations of the Texas Department of Housing and Community Affairs. By limiting tax credits based on geographical considerations, the bill seeks to ensure that developments do not lead to excessive clustering of low income housing in particular districts. This policy shift may also prompt a reevaluation of housing projects that previously qualified for funding, thereby reshaping future development proposals in various regions across Texas.

Summary

House Bill 280 introduces a prohibition on the allocation of low income housing tax credits for developments located in specific school districts. The bill amends Section 2306.6703 of the Government Code to declare applications ineligible if they pertain to developments adjacent to existing projects that have also received allocations of housing tax credits recently. This approach is intended to manage the saturation of housing developments funded by these credits within designated school areas, addressing concerns about maintaining the quality of local education alongside housing availability.

Contention

Notably, the bill may face contention from housing advocates who argue that such restrictions could inhibit the availability of affordable housing in underserved communities. There are concerns that the bill could disproportionately affect areas that have a high demand for affordable housing, as it could limit the resources available for new developments that serve low income individuals and families. Opponents of the bill may also argue that the proximity requirement lacks consideration for existing socio-economic conditions in different school districts.

Texas Constitutional Statutes Affected

Government Code

• Chapter 2306. Texas Department Of Housing And Community Affairs
  • Section: 6703

Education Code

• Chapter 48. Foundation School Program
  • Section: New Section