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 introduces provisions that allow developments supported by a low-income housing tax credit allocation 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. This change aims to address the challenges faced by certain groups in finding suitable and affordable rental housing.

The new legal language specifies that the Texas Department of Housing and Community Affairs will administer the program with the goal of increasing the availability of affordable housing while also ensuring the participation of both for-profit and nonprofit organizations in housing development. The changes will apply only to applications for low-income housing tax credits submitted during the 2026 qualified allocation plan cycle or later, with the previous laws remaining in effect for earlier applications. The act is set to take effect on September 1, 2025.

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