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 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.

The bill also modifies existing criteria regarding the allocation of housing tax credits in municipalities or counties with a high number of units supported by such credits or private activity bonds. Specifically, it removes the previous condition that allowed for exceptions and adds a requirement for prior approval from the local governing body, 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 amendment continuing to govern earlier applications. The act is set to take effect on September 1, 2025.

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