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Texas Legislature· SB 2137Effective on 9/1/25

Relating to the allocation of low income housing tax credits, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
S.B. No. 2137

AN ACT

relating to the allocation of low income housing tax credits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2306.67022, Government Code, is amended

by adding Subsections (d) and (e) to read as follows:

(d) The department may not:

(1) require as part of the threshold criteria under a

qualified allocation plan that a public school campus with an

attendance zone that contains the proposed development site satisfy

certain criteria relating to educational quality, as specified by

the department in that plan; or

(2) adopt a qualified allocation plan that uses a

scoring system that awards points to an application based on

criteria relating to the educational quality of a public school

campus with an attendance zone that contains the proposed

development site.

(e) This subsection and Subsection (d) expire September 1,

2027.

SECTION 2. (a) The Texas Department of Housing and

Community Affairs shall conduct a study of the effects that the

implementation of Section 2306.67022(d), Government Code, as added

by this Act, has on the allocation of low income housing tax credits

in this state.

(b) Not later than November 1, 2027, the Texas Department of

Housing and Community Affairs shall submit to each standing

committee of the legislature with jurisdiction over affordable

housing a report regarding the study required by Subsection (a) of

this section.

SECTION 3. The change in law made by this Act applies only

to an application for low income housing tax credits that is

submitted to the Texas Department of Housing and Community Affairs

during an application cycle that is based on the 2026 or 2027

qualified allocation plan adopted by the governing board of the

department.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2137 passed the Senate on

May 12, 2025, by the following vote: Yeas 24, Nays 6.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2137 passed the House on

May 24, 2025, by the following vote: Yeas 91, Nays 44, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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