The bill amends the definition of "at-risk development" in the Texas Government Code to expand the eligibility criteria for certain developments to receive low-income housing tax credits. Specifically, it introduces new provisions that include developments receiving assistance through the Section 8 Housing Assistance Payments Program for New Construction and Substantial Rehabilitation, as well as those receiving assistance under Sections 514, 515, and 516 of the Housing Act of 1949. Additionally, it clarifies that a development can be considered at-risk regardless of whether it proposes to construct or rehabilitate housing units at the original site or at a different location, provided it meets certain conditions related to opportunity index points or local governmental support.

Furthermore, the bill establishes that these changes will apply only to applications for low-income housing tax credits submitted during the application cycle based on the 2026 qualified allocation plan or any subsequent plans. Applications submitted during earlier cycles 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 2306.6702 (Government Code 2306)