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HB 3753

AN ACT relating to the allocation of low income housing tax credits.

House Bill Cunningham | Lopez, Ray | Cole | Luther | Garcia Hernandez, Cassandra
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

Modifies how low-income housing tax credits are allocated by introducing educational quality criteria for proposed development sites. Developers seeking tax credits must now have their proposed housing located in public school attendance zones that meet specific educational performance standards set by the Texas Department of Housing and Community Affairs. The Texas Department will conduct a study on the effects of these new criteria and report to legislative committees by November 1, 2027, with the changes applying to tax credit applications submitted during the 2026 and 2027 application cycles.

Subject Areas

Bill Text

relating to the allocation of low income housing tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 2306.67022, Government Code, is amended
by adding Subsections (d) and (e) to read as follows:
(1)  require as part of the threshold criteria under a
qualified allocation plan that a public school campus with an
attendance zone that contains the proposed development site satisfy
certain criteria relating to educational quality, as specified by
the department in that plan; or
(2)  adopt a qualified allocation plan that uses a
scoring system that awards points to an application based on
criteria relating to the educational quality of a public school
campus with an attendance zone that contains the proposed
(e)  This subsection and Subsection (d) expire September 1,
SECTION 2.  (a)  The Texas Department of Housing and
Community Affairs shall conduct a study of the effects that the
implementation of Section 2306.67022(d), Government Code, as added
by this Act, has on the allocation of low income housing tax credits
(b)  Not later than November 1, 2027, the Texas Department of
Housing and Community Affairs shall submit to each standing
committee of the legislature with jurisdiction over affordable
housing a report regarding the study required by Subsection (a) of
SECTION 3.  The change in law made by this Act applies only
to an application for low income housing tax credits that is
submitted to the Texas Department of Housing and Community Affairs
during an application cycle that is based on the 2026 or 2027
qualified allocation plan adopted by the governing board of the
SECTION 4.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the allocation of low income housing tax credits.