The bill, S.B. No. 368, amends Section 2306.6701 of the Government Code to enhance the low income housing tax credit program in Texas. It specifies that the Texas Department of Housing and Community Affairs will administer the program with the purpose of encouraging the development and preservation of affordable rental housing for households facing challenges in the private market. Notably, the bill introduces a provision allowing developments supported by low income housing tax credits to give occupancy preferences to teachers, school district employees, and their household members, provided that all other occupancy requirements under state and federal law are met.

The changes outlined in the bill will apply to applications for low income housing tax credits submitted during the 2026 qualified allocation plan cycle or any subsequent plans. Applications submitted during earlier cycles will continue to be governed by the existing law prior to this amendment. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2306.6701 (Government Code 2306)