By: West S.B. No. 2549
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of housing tax credits to developments
within proximate geographical areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2306.6711(f) and (f-1), Government
Code, are amended to read as follows:
(f) Except as provided by Subsection (f-1), the board may
allocate housing tax credits to more than one development in a
single community, as defined by department rule, in the same
calendar year only if the developments are or will be located more
than two linear miles apart. This subsection applies only to
communities contained within counties with populations exceeding
one million. This Section does not apply to developments that
involve the rehabilitation of existing affordable, rent-restricted
developments.
(f-1) The board may allocate housing tax credits to more
than one development in a single community only if:
(1) the community is located in[:
[(A)] a municipality with a population of 750,000
[two million] or more; and
[(B) an area that is a federally declared
disaster area; and]
(2) the governing body of the municipality containing
the development[:
[(A)] has by vote specifically authorized the
allocation of housing tax credits for the development[; and
[(B) is authorized to administer disaster
recovery funds as a subgrant recipient].
SECTION 2. The change in law made by this Act applies only
to an application for low income housing tax credits that is
submitted to the Texas Department of Housing and Community Affairs
during an application cycle that is based on the 2026 qualified
allocation plan or a subsequent plan adopted by the governing board
of the department. An application that is submitted during an
application cycle that is based on an earlier qualified allocation
plan is governed by the law in effect on the date the application
cycle began, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect September 1, 2025.