TX SB1944

Expands circumstances under which the Texas Department of Housing and Community Affairs board may allocate housing tax credits to multiple developments in a single community

Creates a new pathway for "high opportunity developments" to receive housing tax credits if: the municipality's governing body approves by two-thirds vote, the development is in an appropriate zoning district, no deed restrictions prohibit the development, and it's located on a major arterial roadway

Defines "high opportunity development" as a project located in areas with maximum opportunity index points, census tracts with poverty rates below 20% or the regional median, and census tracts with median household income in the top two quartiles (or third quartile if within two miles of a higher-income tract)

Retains existing exceptions for municipalities with populations of 2 million or more in federally declared disaster areas where the governing body has authorized tax credits and administers disaster recovery funds

Applies to low income housing tax credit applications submitted during the 2026 qualified allocation plan cycle or later, with an effective date of September 1, 2025