WeVote
Log In

Bill

Bill

SB 2137

Relating to the allocation of low income housing tax credits.

89th Legislature (2025) Introduced by Carol Alvarado and 7 co-sponsors

SB 2137 restructures Texas's Low Income Housing Tax Credit allocation methodology, effective September 1, 2025, potentially redirecting affordable housing development resources across the state.

Effective on 9/1/25
#education--primary&secondary--accountability(i0007) #housing&communityaffairs #texasdepartmentof(v0008) #housing--general(i0405) #taxation--property-miscellaneous(i0797)
0
WeVote Research Nonpartisan
Bill Summary · SB 2137

Legislative bill overview

SB 2137 modifies how Texas allocates Low Income Housing Tax Credits (LIHTC), a federal program that incentivizes private developers to build affordable housing. The bill changes the distribution methodology and potentially the priorities for which projects receive these valuable tax credits, which currently help finance thousands of affordable units across Texas.

Why is this important

LIHTC is one of the largest federal tools for creating affordable housing. How Texas allocates these credits directly determines which communities get affordable housing development and which don't. With Texas's population growth and housing affordability crisis, the allocation rules significantly impact housing availability for low-income residents statewide.

Potential points of contention

  • Geographic equity concerns: Changes to allocation formulas may shift credits away from high-demand urban areas toward rural regions (or vice versa), creating winners and losers among communities
  • Developer impact: Modified allocation rules could disadvantage certain developer types or nonprofit vs. for-profit entities, affecting housing production capacity
  • Priority conflicts: The bill's new criteria may deprioritize certain community needs (elderly housing, homeless services, specific locations) in favor of others, sparking debate over social priorities

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

Sign in to ask a question.