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Relating to requirements for beneficial tax treatment related to a
leasehold or other possessory interest in a public facility used to
provide multifamily housing.
No significant fiscal implication to the State is anticipated.
However, the bill could create an indeterminate revenue gain to the State through the school funding formula
by limiting the amount of property that would qualify for future property tax exemptions.
HB 1931 stipulates what requirements a development or leasehold must satisfy to be eligible for the beneficial tax treatment program, including what percentage of the units a developer must reserve for participants in the housing choice voucher program, the prohibition of discrimination based upon participation in said program, and restricting the use of a minimum income standard that requires a unit participating in said program to have a monthly income of more than 250 percent of the individual or family’s share of the total monthly rent payable.
Texas Action is opposed to HB 1931 on the principle of limited government, as it creates a carve out for particular types of developments to the exclusion of others, incentivizing the perpetuation of unnecessary qualifications for beneficial tax treatment. It would be better for the legislature to do away with these types of tax preferences altogether and allow development to operate in a free market environment that is not manipulated through the tax code.