H.B. No. 492 amends Section 2306.6703(a) of the Government Code to establish new eligibility criteria for applications under the low income housing tax credit program. The bill specifies that applications will be ineligible if the applicant or a related party has held certain positions within the Texas Department of Housing and Community Affairs, if the applicant proposes to replace private activity bond financing in less than 15 years without meeting specific conditions, or if the proposed development is 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, the bill introduces a new criterion that disqualifies developments located in municipalities or counties with more than twice the state average of housing units per capita unless prior approval from the local governing body is obtained.

Furthermore, the bill adds a new requirement that a development must be located within two miles of a grocery store to be eligible for tax credits. This change aims to ensure that low-income housing developments are situated in areas with essential amenities, promoting better living conditions for residents. The new provisions will apply to applications submitted during the 2026 qualified allocation plan cycle or any subsequent plans, with the law in effect prior to this amendment continuing to govern earlier application cycles. The act is set to take effect on September 1, 2025.

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