WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 1865

Legislative bill overview

HB 1865 modifies how Texas allocates Low Income Housing Tax Credits (LIHTC), a federal program that incentivizes private development of affordable rental housing. The bill adjusts the state's distribution formula or prioritization criteria for these limited tax credits among competing housing projects. This is one of several mechanisms Texas uses to address affordable housing shortages across the state.

Why is this important

Low Income Housing Tax Credits are one of the largest federal funding sources for affordable housing development in America. Texas's allocation decisions directly determine which communities receive affordable housing investments and which developers can move forward with projects. Changes to allocation formulas affect housing availability for low-income residents, urban versus rural development priorities, and the feasibility of housing projects statewide.

Potential points of contention

  • Geographic equity concerns: Different allocation formulas may favor urban areas with higher development costs over rural regions, or vice versa, creating winners and losers across the state
  • Developer competition: Changes to prioritization criteria could disadvantage certain types of developers (nonprofits vs. for-profits) or development models, affecting which projects get funded
  • Affordability depth vs. quantity: Decisions about credit allocation involve tradeoffs between serving more households at moderate income levels versus deeper subsidies for extremely low-income residents

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

Sign in to ask a question.