The bill, H.B. No. 280, proposes amendments to the Government Code regarding the allocation of low-income housing tax credits. It establishes that applications for these credits will be ineligible if the proposed development is located in a school district that has been subject to Section 48.257(a) of the Education Code at any time during the five years preceding the application round. This new provision is added as a fifth criterion for ineligibility, alongside existing criteria that include proximity to other developments receiving tax credits and the density of housing units supported by tax credits or private activity bonds in the area.

Additionally, the bill modifies existing language by removing a previous criterion related to the density of housing units in municipalities or counties, which required prior approval from local governing bodies for developments exceeding a certain density. The changes will apply to applications submitted during the 2026 qualified allocation plan cycle or any subsequent plans, while applications from earlier cycles will continue to be governed by the previous law. The bill is set to take effect 91 days after the end of the legislative session.

Statutes affected:
Introduced: Government Code 2306.6703 (Government Code 2306)