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HB 2985

Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.

89th Legislature (2025) Introduced by Joe Moody

HB 2985 broadens Texas eligibility requirements for at-risk housing developments to access federal low-income housing tax credits, potentially expanding affordable housing development capacity.

Left pending in committee
#housing&communityaffairs #texasdepartmentof(v0008) #housing--general(i0405) #taxation--property-miscellaneous(i0797)
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Bill Summary · HB 2985

Legislative bill overview

HB 2985 expands eligibility criteria for certain at-risk residential developments to qualify for federal low-income housing tax credits (LIHTCs) in Texas. The bill modifies existing state requirements that determine which housing projects can access these federal tax incentives, potentially allowing more developments to participate in the program.

Why is this important

Low-income housing tax credits are a primary federal mechanism for financing affordable housing development. Expanding eligibility could increase the supply of affordable housing in Texas communities, though it also affects how limited federal tax credit allocations are distributed among competing projects statewide.

Potential points of contention

  • Defining "at-risk": Disagreement over what circumstances qualify a development as at-risk and therefore deserving of priority consideration for tax credits
  • Allocation fairness: Expanding one category's eligibility may redirect credits from other housing priorities or geographic areas, creating winners and losers
  • Fiscal impact on state: While federal credits are involved, state administration and any matching requirements could affect Texas budget resources

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

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