TX SB2549

Amends the two-mile separation rule for housing tax credit allocations, which currently prevents multiple developments in the same community from receiving credits in the same calendar year unless located more than two linear miles apart

Creates an exemption from the two-mile rule for developments involving rehabilitation of existing affordable, rent-restricted housing units

Maintains the existing limitation that the two-mile rule only applies to communities in counties with populations exceeding one million

Applies to low income housing tax credit applications submitted during the 2026 qualified allocation plan cycle or subsequent plans adopted by the Texas Department of Housing and Community Affairs

Takes effect September 1, 2025