Bill > HB2985

This bill expands the definition of "at-risk developments" eligible to receive low income housing tax credits by adding two new provisions to the existing law. First, the bill adds two new housing assistance programs administered by the U.S. Department of Housing and Urban Development (HUD) to the list of qualifying subsidy programs: the Section 8 Housing Assistance Payments Program for New Construction and the Section 8 Housing Assistance Payments Program for Substantial Rehabilitation. Second, the bill clarifies that an at-risk development can qualify for tax credits regardless of whether it proposes to newly construct, rehabilitate, or reconstruct housing units at the original or a different location, as long as the new development either qualifies for points on the opportunity index or receives support from the local municipal or county governing body through an adopted resolution. The changes will apply only to low income housing tax credit applications submitted during the 2026 or subsequent qualified allocation plans, with applications from earlier cycles still governed by the previous law. The bill is set to take effect on September 1, 2025, providing a clear timeline for implementation of these expanded eligibility criteria for housing developments.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2985