Senate committee adopts narrow waiver to housing tax-credit distance rule for commercial corridors

The Committee on Local Government adopted a committee substitute to Senate Bill 19-44 that would let the Texas Department of Housing and Community Affairs (TDHCA) waive its 2-mile/1-year restriction for housing tax-credit awards in narrowly defined commercial corridors.

Senator Eckhart, who led the committee discussion, said the substitute keeps the waiver narrowly tailored to “high opportunity areas” and adds three limits: the development must be in a commercial zone, have no deed restrictions that would prevent such a development, and be located on a major arterial. “The amendments are designed to assure individuals that we will not be seeing multifamily developments inside neighborhoods on small neighborhood collectors,” Eckhart said.

The committee substitute modifies an existing TDHCA allocation rule that typically prevents the agency from awarding low-income housing tax credits to an affordable housing development located within two miles of another tax-credit project awarded in the same year in counties with a population over 1 million. Eckhart told the committee the substitute was drafted to ensure waivers apply only to projects on transportation or commercial corridors rather than small neighborhood streets.

Senator Cook moved to adopt the committee substitute and to report SB 19-44 to the full Senate with a recommendation that the committee substitute do pass and be printed. The committee roll call produced four ayes and one nay; the clerk recorded the committee substitute as reported to the Senate.

The committee discussion focused on geographic and land-use limits rather than funding mechanics; Eckhart and Chairman Bettencourt described the changes as clarifications of intent rather than expansions of the rule. No additional amendments were offered during the committee meeting.

With the committee substitute adopted and the measure reported, the bill proceeds to the full Senate for further consideration and any floor amendments or debate.