TX SB2608

Expands the definition of "at-risk development" for low income housing tax credit eligibility to include two additional HUD Section 8 programs: the Housing Assistance Payments Program for New Construction (24 C.F.R. Part 880) and the Housing Assistance Payments Program for Substantial Rehabilitation (24 C.F.R. Part 881)

Allows developments receiving assistance under these newly added Section 8 programs to qualify as at-risk developments when their affordability contracts are nearing expiration or their HUD-insured/held mortgages are eligible for prepayment or nearing term end

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

Takes effect September 1, 2025