SB 1944

relating to the allocation of housing tax credits to developments
within proximate geographical areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 2306.6711(f-1), Government Code, is
(f-1)  The board may allocate housing tax credits to more
than one development in a single community:
(A) [(1)]  the community is located entirely in:
(i) [(A)]  a municipality with a population
(ii) [(B)]  an area that is in a federally
(B) [(2)]  the governing body of the municipality
(i) [(A)]  has by vote specifically
authorized the allocation of housing tax credits for the
(ii) [(B)]  is authorized to administer
disaster recovery funds as a subgrant recipient; or
(A)  the community is located entirely in:
(ii)  a census tract with a poverty rate less
than the greater of 20 percent or the median poverty rate among
census tracts in the uniform state service region; and
(iii)  an area that allows the development
to receive the maximum possible points for the opportunity index
established by the department pursuant to 26 U.S.C. Section
(B)  the governing body of the municipality
containing the development has by vote specifically authorized the
allocation of housing tax credits for the development.
SECTION 2.  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 qualified
allocation plan or a subsequent plan adopted by the governing board
of the department.  An application that is submitted during an
application cycle that is based on an earlier qualified allocation
plan is governed by the law in effect on the date the application
cycle began, and the former law is continued in effect for that
SECTION 3.  This Act takes effect September 1, 2025.