The bill, H.B. No. 280, proposes to amend 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 and the status of private activity bond financing.

Additionally, the bill modifies the existing criteria by removing a previous condition related to the allocation of housing tax credits. The changes will only 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)