Bill Caption

Relating to definition of an at-risk development for the low income housing tax credit program.

Fiscal Notes

The bill amends the Government Code relating to low income housing tax credits awarded for at-risk developments. Based on the analysis of the Department of Housing and Community Affairs, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

Bill Analysis

SB 1315 would change the Government code definition of "at-risk development" to include HUD-insured or HUD-held mortgage in terms of receiving  the benefit of a subsidy in the form of a below-market interest rate loan, interest rate reduction, rental subsidy, Section 8 housing assistance payment, rental supplement payment, rental assistance payment, or equity incentive under the following federal laws.

Vote Recommendation Notes

By making changes to the qualification requirements for participating in an "at-risk development" SB 1315 would expand the number of housing projects eligible to compete for federal Section 8 subsidized housing funds. As such this bill would expand the pool of projects eligible for the tax credits which would drive up competition for those credits, expand the number of subsidized projects, and thus continue to perpetuate that bad policy of subsidized housing which distorts free markets, confers special privileges, and reduces personal responsibility. On these grounds we oppose SB 1315.