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 by removing the previous condition regarding the allocation of housing tax credits for developments in municipalities or counties with a high number of units per capita supported by such credits or private activity bonds. Instead, it now requires that applicants obtain prior approval from the governing body of the municipality or county and include a written statement of support in their application. 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 application cycles. The act is set to take effect on September 1, 2025.

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