S.B. No. 2608 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. The bill introduces new legal language that includes additional federal housing assistance programs, specifically the Section 8 Housing Assistance Payments Program for New Construction and Substantial Rehabilitation, as well as Sections 514, 515, and 516 of the Housing Act of 1949. It also modifies the existing language by deleting a reference to Section 42 of the Internal Revenue Code of 1986.

The changes made by this 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 still be governed by the previous law. The bill is set to take effect on September 1, 2025, following its favorable report by the Senate Committee on Local Government.

Statutes affected:
Introduced: Government Code 2306.6702 (Government Code 2306)
Senate Committee Report: Government Code 2306.6702 (Government Code 2306)