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Bill

HB 1997

Relating to the issuance by the Texas Department of Housing and Community Affairs of certain federal forms for purposes of allocating low income housing tax credits; authorizing an administrative penalty.

89th Legislature (2025) Introduced by Liz Campos

HB 1997 grants TDHCA authority to issue federal forms for low-income housing tax credits and establishes administrative penalties for violations.

Left pending in committee
#housing&communityaffairs #texasdepartmentof(v0008) #housing--general(i0405)
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Bill Summary · HB 1997

Legislative bill overview

HB 1997 authorizes the Texas Department of Housing and Community Affairs (TDHCA) to issue federal forms needed for allocating Low Income Housing Tax Credits (LIHTC) and establishes an administrative penalty framework for violations related to this process. The bill streamlines the procedural authority for TDHCA to manage federal tax credit documentation that incentivizes private development of affordable housing.

Why is this important

Low Income Housing Tax Credits are a primary federal mechanism for financing affordable rental housing development nationwide. By clarifying TDHCA's authority to issue required forms and adding penalty provisions, the bill aims to improve compliance and efficiency in Texas's affordable housing development pipeline, which has faced significant supply constraints amid rapid population growth.

Potential points of contention

  • Penalty scope ambiguity: The bill authorizes "administrative penalty" but provides limited detail on penalty amounts, triggering mechanisms, or due process standards—raising concerns about potential overreach or inconsistent enforcement
  • Federal-state coordination: Unclear how state-imposed penalties interact with federal LIHTC program requirements and IRS oversight, potentially creating conflicting compliance obligations
  • Developer impact: Private housing developers and nonprofits may face increased regulatory burden and financial risk if penalties are substantial, potentially discouraging LIHTC participation in marginally viable projects

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

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