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HB 280

Relating to a prohibition on the allocation of low income housing tax credits for developments located in certain school districts.

89th Legislature, 1st Called Session (2025) Introduced by Mark Dorazio

Texas bill prohibits low-income housing tax credits in certain school districts, potentially reducing affordable housing development in specified areas.

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#housing&communityaffairs #texasdepartmentof(v0008) #housing--finance(i0407) #taxation--property-exemptions(i0793)
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Bill Summary · HB 280

Legislative bill overview

HB 280 would prohibit the allocation of federal low-income housing tax credits (LIHTCs) for affordable housing developments in certain school districts. The bill restricts a major financing tool used by developers to build and preserve affordable rental housing by tying eligibility to unspecified school district criteria.

Why is this important

Low-income housing tax credits are the primary federal mechanism for financing affordable housing construction in the United States. Restricting their use could significantly reduce affordable housing development in affected areas, potentially displacing low-income residents or forcing them into more distant communities. This creates a direct tension between housing availability and school district considerations, with meaningful implications for housing supply and segregation patterns.

Potential points of contention

  • Vague criteria: The bill doesn't specify which school districts qualify for the restriction, creating uncertainty for developers and potentially inconsistent application
  • Housing supply impact: Limiting LIHTC allocation may worsen affordable housing shortages and increase homelessness or cost-burden in restricted areas
  • Equity concerns: Targeting specific school districts may have disparate racial or socioeconomic impacts, potentially concentrating poverty elsewhere or preventing economic integration
  • Federal funding complications: Since LIHTCs are federally funded, state restrictions could conflict with federal housing policy objectives or raise constitutional questions
  • Economic development conflict: Affordable housing often supports workforce development; restrictions could limit economic vitality in certain areas

Compiled from official sources — confirm details with the bill’s official record.

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