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Bill

HB 492

Relating to prohibiting the allocation of low income housing tax credits for certain developments.

89th Legislature (2025) Introduced by Christina Morales

HB 492 restricts Low Income Housing Tax Credit allocation to certain Texas developments, potentially reducing affordable housing supply and community economic development.

Referred to Intergovernmental Affairs
#housing&communityaffairs #texasdepartmentof(v0008) #housing--general(i0405)
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Bill Summary · HB 492

Legislative bill overview

HB 492 would prohibit the allocation of Low Income Housing Tax Credits (LIHTCs) to certain residential developments in Texas. The bill restricts which projects can receive these federal tax incentives, which are a primary mechanism for funding affordable housing construction. The specific criteria for ineligibility are not detailed in the basic bill information provided.

Why is this important

LIHTCs are among the most significant federal tools for financing affordable housing nationwide. Restricting access to these credits could reduce affordable housing development capacity in Texas, potentially affecting housing availability and costs for low-income residents. This may also impact economic development in communities that rely on tax credit-funded projects for workforce housing.

Potential points of contention

  • Housing affordability impact: Limiting LIHTC allocation could reduce new affordable unit supply when demand is high, potentially worsening housing shortages for low-income households
  • Economic development consequences: Communities may lose tax credit-funded projects that provide both housing and local economic benefits through construction jobs and tax revenue
  • Undefined restriction criteria: The bill's specific exclusion criteria would determine which developments are blocked, raising questions about whether restrictions target legitimate concerns or unnecessarily limit housing options

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

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