The bill amends Section 2306.6703(a) of the Government Code to establish new eligibility criteria for applications under the low income housing tax credit program. It specifies that applications will be ineligible if the applicant proposes to construct a new development located within one linear mile of another development serving the same type of household that has received tax credits in the past three years. Additionally, it introduces a new requirement that developments must be located within two miles of a grocery store to be eligible for tax credits.

Furthermore, the bill removes a previous provision that allowed for certain exceptions regarding the proximity of developments. It also requires that if a development is located in a municipality or county with more than twice the state average of units per capita supported by housing tax credits or private activity bonds, prior approval from the local governing body must be obtained, along with a written statement of support. The changes will apply to applications submitted during the 2026 qualified allocation plan cycle or later, with the law in effect prior to this bill remaining applicable for earlier cycles. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2306.6703 (Government Code 2306)