SB1944 - Relating to the allocation of housing tax credits to developments within proximate geographical areas.

      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.     * * * * *