Bill Text: TX SB1944 | 2025-2026 | 89th Legislature | Comm Sub

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Bill Title: Relating to the allocation of housing tax credits to developments within proximate geographical areas.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2025-05-21 - Not again placed on intent calendar [SB1944 Detail]

Download: Texas-2025-SB1944-Comm_Sub.html

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By: Eckhardt, West S.B. No. 1944
(In the Senate - Filed March 5, 2025; March 17, 2025, read
first time and referred to Committee on Local Government;
May 12, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 4, Nays 1; May 12, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1944 By: Cook

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. Section 2306.6711, Government Code, is amended
by amending Subsection (f-1) and adding Subsection (f-2) to read as
follows:
(f-1) The board may allocate housing tax credits to more
than one development in a single community:
(1) [only] if:
(A) [(1)] the community is located in:
(i) [(A)] a municipality with a population
of two million or more; and
(ii) [(B)] an area that is in a federally
declared disaster area; and
(B) [(2)] the governing body of the municipality
containing the development:
(i) [(A)] has by vote specifically
authorized the allocation of housing tax credits for the
development; and
(ii) [(B)] is authorized to administer
disaster recovery funds as a subgrant recipient; or
(2) if:
(A) the development is a high opportunity
development;
(B) the governing body of the municipality
containing the development has by a two-thirds vote specifically
authorized the allocation of housing tax credits for the
development;
(C) the development:
(i) is in a zoning district or land use
classification whereby the municipality allows multifamily
residential, mixed-use, office, commercial, retail, or warehouse
development; and
(ii) is not subject to a deed restriction or
regulation that prohibits multifamily residential, mixed-use,
office, commercial, retail, and warehouse development; and
(D) the development is located on a major
arterial roadway.
(f-2) For purposes of Subsection (f-1), "high opportunity
development" means a development that is located entirely in:
(1) an area that allows the development to receive the
maximum possible points for the opportunity index established by
the department pursuant to 26 U.S.C. Section 42(m)(1)(C)(i);
(2) a census tract with a poverty rate that is less
than the greater of:
(A) 20 percent; or
(B) the median poverty rate among census tracts
in the uniform state service region; and
(3) a census tract that has:
(A) a median household income in the two highest
quartiles among census tracts within the uniform state service
region; or
(B) a median household income in the third
quartile among census tracts within the region, if:
(i) the census tract is contiguous to a
census tract that:
(a) is in the first or second quartile
among tracts for median household income in the region; and
(b) has a poverty rate that is less
than the greater of 20 percent or the median poverty rate among
tracts for the region; and
(ii) the development is located not more
than two miles from the boundary between the census tract and the
contiguous census tract described by Subparagraph (i).
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.
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