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Bill

SB 2471

Relating to a set-aside of low income housing tax credits for at-risk housing developments and to the allocation of housing tax credits to those developments and certain other developments.

89th Legislature (2025) Introduced by José Menéndez

Bill reserves portion of Texas's Low Income Housing Tax Credits specifically for at-risk housing developments to increase affordable housing in vulnerable communities.

Referred to Local Government
#housing&communityaffairs #texasdepartmentof(v0008) #housing--finance(i0407) #housing--general(i0405)
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Bill Summary · SB 2471

Legislative bill overview

SB 2471 establishes a dedicated allocation of Low Income Housing Tax Credits (LIHTCs) for at-risk housing developments in Texas, with preferences for certain qualifying projects. The bill creates a set-aside mechanism within the state's existing LIHTC program to prioritize funding for developments serving vulnerable populations or located in areas facing housing crises.

Why is this important

Low Income Housing Tax Credits are a primary federal tool for financing affordable housing development. By carving out a dedicated portion for at-risk developments, the bill aims to increase affordable housing options for vulnerable populations while addressing geographic disparities in LIHTC allocation. This could significantly impact housing availability for low-income Texans in underserved markets.

Potential points of contention

  • Definitional clarity: The bill's success depends on clear definitions of "at-risk housing developments"—ambiguity could lead to disputes over which projects qualify and disputes with stakeholders claiming their priorities were excluded
  • Reduced flexibility: Creating a set-aside reduces available credits for other affordable housing types, potentially disadvantaging developments serving other populations or regions not designated as "at-risk"
  • Implementation complexity: The Texas Housing and Community Affairs Department must develop new allocation procedures, creating administrative burden and potential delays in credit distribution

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

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