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Bill would expand LIHTC "at‑risk" set‑aside to include Section 8 new‑construction and substantial rehabilitation projects

April 24, 2025 | Committee on Local Government, Senate, Legislative, Texas


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Bill would expand LIHTC "at‑risk" set‑aside to include Section 8 new‑construction and substantial rehabilitation projects
Senator Blanco presented Senate Bill 2608 to expand the definition of ‘‘at‑risk’’ properties eligible for a state low‑income housing tax credit (LIHTC) at‑risk set‑aside. The bill would add two federal subsidy categories — Section 8 new construction and Section 8 substantial rehabilitation projects — to the list of programs that may qualify for the at‑risk allocation.

Shelley Rivas, general counsel for the Housing Authority for the City of El Paso (HOME), testified in support and explained the rationale: many Section 8 projects were built in the 1970s–1980s (she cited no new construction since 1983 under those federal subsidies) and now constitute aging properties that serve very low income residents (roughly 30–50% AMI). Including those federal programs in the at‑risk set‑aside would allow more public-housing properties to access state LIHTC resources for renovation and preservation.

Rivas said four properties in El Paso would qualify if the change were adopted, representing about 400 units for elderly residents that currently do not fit existing at‑risk categories. The committee took testimony and left SB 2608 pending subject to call of the chair.

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