89th Texas Legislative Priorities
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 89th Legislature commenced on January 14th, 2025 and will run for 140 days, ending June 2nd, 2025. See the significant dates, listed from the Texas Legislative Council.
Click here to view TAAHP’s Legislative Agenda Review Webcast (Member Log In Required) where TAAHP’s Government Affairs Committee and SubCommittee leadership explain TAAHP’s priorities for the 89th Legislative Session.
2025 TAAHP Legislative Priorities
Ensuring Fair Property Tax Appraisals for LIHTC Properties
The proposed amendments to Section 23.215 of the Texas Tax Code seek to ensure that Low-Income Housing Tax Credit (LIHTC) properties are appraised based on their actual income-generating capacity rather than inflated market values. The amendments include an income-based appraisal method for post-construction properties, a temporary three-year average provision for new properties to account for stabilization, and a three-year appraisal cycle for stabilized LIHTC properties.
Additionally, a standardized 10% capitalization rate would be applied to all LIHTC properties to ensure uniform and fair tax assessments across the state. These reforms aim to provide stability for developers, reduce litigation, and preserve long- term affordability for tenants.
Creating Sustainable Housing Solutions through Data & Industry Collaboration
Fragmented and inconsistent data collection currently makes it difficult to assess housing needs, track trends, and evaluate housing policy effectiveness. To address this, solutions include strengthening TDHCA’s capacity for data collection and policy analysis, as well as creating a statewide Affordable Housing Taskforce. The taskforce would bring together diverse stakeholders to coordinate efforts, identify barriers, and propose data-driven solutions for the housing shortage. By prioritizing data integration and collaboration, Texas can develop more effective, long-term solutions to its housing challenges.
Tax Exemptions for Affordable Housing
TAAHP will focus on preserving the reforms to the Public Facility Corporation (PFC) program, ensuring that property tax exemptions continue to support affordable housing in communities with the greatest need. We will advocate for Housing Finance Corporations to operate within their designated jurisdictions, opposing out-of-jurisdiction transactions that undermine local control. TAAHP is committed to protecting the structure of Public Housing Authorities (PHAs) to ensure compliance with federal regulations and program stability. Additionally, we will prioritize maintaining local control, transparency, and strong affordability standards in all tax exemption programs to ensure they effectively benefit low- and moderate-income Texans.
Private Activity Bond Program (PAB)
The PAB program is a crucial tool for financing affordable housing in Texas, and TAAHP’s focus in the upcoming legislative session is to preserve its stability and effectiveness. While no significant changes are expected, TAAHP will support improvements in the program’s efficiency, flexibility, and regional equity, ensuring that it meets the diverse needs of the state. Additionally, TAAHP will monitor any proposed enhancements or technical adjustments to streamline processes and improve access to affordable housing financing across Texas.
Addressing Rising Insurance Costs Impacting Affordable Housing
Rising insurance premiums are creating a financial crisis for affordable housing developers and operators in Texas, with costs increasing by 30% to 100% over the past three years, while rent restrictions prevent property owners from passing on these costs to tenants. To address this, key policy solutions include prohibiting discrimination against affordable housing in insurance pricing, conducting a statewide multifamily insurance study, and making insurance costs a legislative priority. These measures aim to stabilize the financial health of affordable housing communities and ensure their long-term sustainability in the face of rising premiums.
Legislative Toolbox (for TAAHP Members Only – log in required)
Advocacy Action Center
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Important Legislative Dates
89th Legislature Convenes
60-day Deadline for Bill Filing
Last day of 89th Regular Session (sine die)
Participate in Legislative Meetings
Join us for Rally Day at the State Capitol to educate and inform legislators and their staff about TAAHP’s legislative priorities. Advanced registration is required. Sponsorships are available. Details here.
Legislative News
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