TX SB2471

Requires the Texas Department of Housing and Community Affairs to set aside at least 15% of annual low income housing tax credits for "at-risk" developments and allocate the maximum amount to eligible applicants before applying regional allocation formulas

Expands the definition of "at-risk development" to include properties receiving assistance under Section 521 of the Housing Act of 1949 (42 U.S.C. Section 1490a) in addition to existing qualifying federal housing programs

Clarifies that developments qualify as "at-risk" when affordability stipulations or federally issued/held mortgages are within three years of expiration based on the anticipated tax credit allocation date

Allocates 5% of housing tax credits each cycle to developments receiving financial assistance from the U.S. Department of Agriculture, with rehabilitation projects drawing from at-risk set-aside funds first

Applies to applications submitted under the 2026 qualified allocation plan or subsequent plans, with an effective date of September 1, 2025