Bill > HB492

This bill modifies the eligibility criteria for low income housing tax credits (LIHTC) in Texas by adding a new disqualifying condition: developments that are not located within two miles of a grocery store will be ineligible for tax credits. The bill amends existing law to expand the circumstances under which a housing development application can be deemed ineligible, building upon previous restrictions related to applicant background, bond financing, proximity to existing developments, and municipal density of tax credit units. Specifically, the new provision aims to ensure that low-income housing developments are located in areas with reasonable access to grocery stores, which could help improve residents' access to fresh food and basic necessities. The changes will apply only to applications submitted during application cycles based on the 2026 qualified allocation plan or subsequent plans, meaning the new rule will not retroactively affect earlier applications. The bill is set to take effect on September 1, 2025, giving housing developers and local authorities time to prepare for the new requirement.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB492