Bill > SB368

This bill modifies the Texas Government Code to explicitly allow low-income housing developments that receive housing tax credits to provide occupancy preferences to teachers and other employees of the local school district, along with members of their households. Currently, the law encourages the development of affordable housing to help households that struggle to find suitable rental housing, and this amendment adds a specific provision that aligns with federal tax law (Section 42(g)(9) of the Internal Revenue Code). The changes will apply only to low-income housing tax credit applications submitted during application cycles based on the 2026 qualified allocation plan or subsequent plans, meaning applications submitted under earlier plans will be governed by the previous law. The bill will take effect on September 1, 2025, providing housing developers with a clear framework for potentially prioritizing school district employees in their tenant selection process while maintaining all other existing occupancy requirements under state and federal law.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB368