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Bill

SB 1155

Relating to prohibiting an increase in the rent of a tenant residing in a development supported with a low income housing tax credit allocation.

89th Legislature (2025) Introduced by Sarah Eckhardt

SB 1155 prohibits rent increases for tenants in low-income housing tax credit developments, protecting affordability but potentially discouraging landlord participation and property maintenance.

Referred to Local Government
#housing--general(i0405) #propertyinterests--landlord&tenant(i0610)
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Bill Summary · SB 1155

Legislative bill overview

SB 1155 would prohibit landlords from raising rent on tenants living in housing developments that received low-income housing tax credit (LIHTC) allocations. The bill aims to protect affordability in federally-subsidized low-income housing by freezing or limiting rent increases during tenancies.

Why is this important

Low-income housing tax credits are a primary federal mechanism for creating affordable housing, but properties receiving these credits can still raise rents significantly when lease terms expire. This bill directly addresses housing affordability for vulnerable renters by preventing rent spikes in developments that were specifically funded to serve low-income populations, potentially affecting thousands of Texas residents.

Potential points of contention

  • Property owner impact: Restricting rent increases limits landlords' ability to respond to inflation, maintenance costs, and market conditions, potentially discouraging participation in LIHTC programs or reducing property maintenance investments
  • Definition ambiguity: The bill's scope is unclear—does it apply to all rent increases or only those exceeding certain thresholds? Does it apply indefinitely or only during the LIHTC compliance period?
  • Economic feasibility: Frozen or severely restricted rents may make properties financially unviable for owners, potentially leading to conversions to market-rate housing or property abandonment when LIHTC restrictions expire

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

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