Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to the allocation of housing tax credits to developments credits to developments within proximate geographical areas.
No fiscal implication to the State is anticipated.
SB 542 would allow the governing board of the Texas Department of Housing and Community Affairs to allocate housing tax credits under the low-income housing tax credit program to more than one development in a single community in the same calendar if the following conditions are met: (1) at least one of the developments will be located wholly within a census tract that has a poverty rate above 15 percent and in which the median value of owner-occupied homes has increased by 15 percent or more within the five years preceding the date of the application; and (2) the applicant for the development has obtained prior approval from the governing body of the municipality or county, and has included a written statement of support from that governing body referencing the Allocation of Housing Tax Credits and authorizing an allocation of housing tax credits for the development.
This would effectively allow the City of Houston to use federal funds for housing disaster recovery without having to stagger developments over a longer period of which a risk missing the deadline to use these funds.
Texas Action remains neutral on SB 542 as it does not affect our liberty principles. While we are generally opposed to housing tax credits, we understand that this bill would remove a technicality to ensure more efficient use of federal funds for housing disaster recovery resulting from Hurricane Harvey.