Senate Bill No. 898 amends Section 2306.6711(b) of the Government Code regarding the allocation of low-income housing tax credits in Texas. The bill increases the maximum amount of housing tax credits that can be allocated to an individual development in a single application round from $2 million to $3 million. Additionally, it stipulates that the Texas Department of Housing and Community Affairs must issue commitments for available housing tax credits based on the application evaluation process outlined in Section 2306.6710, ensuring that allocations are not made in unnecessary amounts as determined by the department's underwriting policy and federal law.

The provisions of this bill will apply only to applications for low-income housing tax credits submitted during an application cycle based on the 2026 qualified allocation plan or any subsequent plans. Applications submitted during cycles based on earlier plans will continue to be governed by the previous law. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 2306.6711 (Government Code 2306)
Senate Committee Report: Government Code 2306.6711 (Government Code 2306)
Engrossed: Government Code 2306.6711 (Government Code 2306)
House Committee Report: Government Code 2306.6711 (Government Code 2306)