Bill > HB3753

This bill modifies how the Texas Department of Housing and Community Affairs (TDHCA) can evaluate low income housing tax credit applications by prohibiting the department from using school campus educational quality as a threshold criteria or scoring factor when reviewing housing development proposals. Specifically, the TDHCA cannot require or award points to applications based on the educational performance of public schools in the attendance zone where a proposed affordable housing development would be located. The provision will apply to application cycles for the 2026 and 2027 qualified allocation plans and will expire on September 1, 2027. The bill also mandates that the TDHCA conduct a study on the effects of this change and submit a report to legislative committees by November 1, 2027. Low income housing tax credits (LIHTC) are federal tax credits that incentivize the development of affordable rental housing by providing tax reductions to developers who create housing for low-income residents. The bill takes effect on September 1, 2025, and aims to prevent potential educational performance metrics from influencing affordable housing development site selections.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3753