Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to low income housing tax credits administered by the Texas Department of Housing and Community Affairs.
No significant fiscal implication to the State is anticipated.
The Department of Housing and Community Affairs indicates that the cost to implement the bill
would be approximately $59,411 in Appropriated Receipts for each year to market the properties
as directed by the bill. The existing Housing Tax Credit program generates sufficient revenue to
support this expenditure; however,an increase in the agency's appropriation authority would be
necessary for the agency to make expenditures pursuant to the bill.
SB 2250 would direct the Texas Department of Housing and Community Affairs (TDHCA) to implement a strategic plan that would identify developments that are at risk for withdrawing from the low-income housing tax credit program in the next two to five years. Under this plan, TDHCA would create a system based on prioritization for the developments and would also establish a strategy that includes researching potential funding mechanisms for the housing developments.
In addition to the plan, this bill would include the requirement for TDHCA to maintain the oversight of its current housing developments.
Texas Action recommends to oppose SB 2250 on the basis of limited government and personal responsibility. We believe that it is not the role of a limited government to encourage "affordable" home ownership. Subsidizing below-market rate residential mortgage loans will considerably distort the residential mortgage loan market and could create very bad unintended consequences. For these reasons, we stand opposed.