TAAHP is a trade organization whose members’ finance and/or develop affordable housing around the state of Texas. A key program used to finance affordable housing developments is the Housing Tax Credit (HTC) Program (formerly called Low-Income Housing Tax Credit (LIHTC)). The following priorities regard the HTC application process or HTC properties in place.
The Texas 87th Legislature commenced on January 12th, 2021 and will run for 140 days, ending May 31st, 2021. See the significant dates, listed from the Texas Legislative Council.
2021 TAAHP Legislative Priorities
- Remove Census Tract Limitations
- Allow TDHCA to Prioritize Scoring Criteria
- Other Issues
- Rally Day Toolbox
Exchange Resolutions of No Objection with a Local Certification Process
- 4% HTC applicants are required to obtain a Resolution of No Objection (RONO) from the local jurisdiction. Failure to do so would make the development ineligible for credits with no opportunity to appeal.
- The requirement of RONOs limits building affordable housing, especially in suburban areas where land is already appropriately zoned. Often, this means developments aren’t built where they are most needed.
- TAAHP proposes RONOs be swapped for a Local Jurisdiction Certification Process. Doing so would keep local involvement in place, while creating a more inclusive process that fosters continuous communication between parties.
Remove Census Tract Limitations
- The 9% HTC program incentivizes developments in census tracts in which there are no other existing tax credit developments. Oftentimes, there is no other existing development there because there is limited market demand. This rule means developments in densely populated urban areas, where there is the most need, are disincentivized.
- There are other de-concentration factors in the rule that more equitably distribute tax credit dollars
- TAAHP proposes the removal of Section 2306.6725(b)(2) which requires TDHCA to incentivize developments in “census tracts in which there are no other existing developments supported by tax credits.”
Allow TDHCA to Prioritize Scoring Criteria
- The Texas Housing Tax Credit program is highly prescribed by state statute, hampering the Texas Department of Housing and Community Affairs’ (TDHCA) ability to be nimble from year-to-year in addressing changing policy goals and objectives.
- Section 2306.6710 sets forth required scoring criteria in descending priority order. TDHCA is then unable to make any substantive changes to the scoring rubric, limiting the program’s ability to meet regional needs.
- TAAHP proposes the directive to “prioritize in descending order” be replaced with a simple directive to “consider” the enumerated scoring criteria in Section 2306.6710(b)(1) and/or reorder the prioritization of the scoring items.
TAAHP will also follow legislation relating to the following topics:
- Public Facility Corporations (PFC)
- Two-Mile Rule for cities with population over 1 million
- Right of First Refusal
- 2-Year Qualified Allocation Plan
- Linkage Fees
- Landlord Rental Requirements
- Property Tax
Advocacy Action Center
Sign up on TAAHP’s Advoacy Action Center to stay on top of bills affecting the affordable housing industry in Texas, receive alerts and calls to act on important legislation.
Important Committees & Leadership
Governor: Gregg Abbott
Lieutenant Governor: Dan Patrick
Speaker of the House: Dade Phelan (Beaumont)
Housing related legislation is typically reviewed in the House Urban Affairs Committee and the Senate Local Government Committee (Replaced Intergovernmental Relations Committee).
House Urban Affairs Committee
Click HERE for full House Committee Appointments
Click HERE for full House Committee Schedule
Click HERE to watch House Committee Hearings LIVE online.
Local Government Committee (replaced Intergovernmental Relations Committee)
Click HERE for full Senate Committee Appointments.
Click HERE for full Senate Committee Schedule
Click HERE to watch Senate Committee Hearings LIVE online.
Important Legislative Dates
87th Legislature Convenes
Deadline for the unrestricted filing of bills and joint resolutions other than local bills, emergency appropriations, and emergency matters submitted by
Last day of 87th Regular Session (sine die)
Participate in Legislative Meetings
Virtual legislative meetings are being scheduled through April. You must sign up in advance to access the required training video, access educational tools, be assigned to a team, and receive your virtual meeting schedule.
The Affordable Housing Credit Improvement Act, which seeks to expand the Low Income Housing Tax Credit Program, has been reintroduced in Congress this session as S. 1136 and H.R. 2573. The changes proposed in this legislation are estimated to increase the supply of affordable housing by over 2 million units over 2 years.
Last week, Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Rob Portman (R-OH) and Representatives Suzan DelBene (D-WA), Jackie Walorski (R-IN), Don Beyer (D-VA), and Brad Wenstrup (R-OH) introduced the Affordable Housing Credit Improvement Act (AHCIA) of 2021 (S. 1136/H.R. 2573). The bill — one of NCSHA’s highest legislative priorities — is comprehensive legislation that would expand and strengthen the Low Income Housing Tax Credit (Housing Credit). The House and Senate versions of the legislation are identical.