2023 Texas Legislative Session – Affordability Update
Legislation Affecting Affordability (important highlights, but not comprehensive)
| Bill Number | Description | Outcome | Ramifications |
|---|---|---|---|
| HB 2071 | PFC Bill | Passed | Requires deeper affordability in unit mix and limits geographic area where a Public Facility Corporation (PFC) can operate based on where it is formed. More restrictive on acquision rehav developments being taken off the tax rolls in a PFC transaction. Overall, not as restrictive as originally proposed. |
| SB 491 | Compatibility | Passed Senate, but stalled in the House | Actually a height bill but impacts compatibility. Compatibility limit was set at 50' for state wide consistency. Interesting timing since the City of Austin was concurrently considering a compatibility ordinance. |
| HB 14 | Expedited Review/3rd Party Review | Law | Unclear how this will affect local jurisdictions as the "clock" is unclear. Allowance for third party review and inspection may lead to a new industry locally. City of Austin is already engaging a consultant for third party zoning review and another consultant to review the review processes. |
| HB 1058 | Texas State Credit for LIHTC | Signed into Law 6/13 | Adds state credit for Low Income Housing; however, the amount seems to be $25M over 10 years, which does not provide much per year. Not in effect until January. Not anticipated to be very effective in creating new developments, but may help some existing deals come to fruition. |
| SB 1787 | Minimum Lot Size | Passed Senate, but didn't get through House | Interesting to have come up at the state level since both City of Austin and Dallas are also currently considering revisiting minimum lot size. |
| HJR 2 | Property Tax Reform - Homestead Exemption | Passed in 2nd Special and at the polls in November | $100,000 Homstead Exemption includes tax rate decrease from school districts. |