As Texas’ 89th Legislative Session continues, TAAHP remains actively engaged in advocating for the issues that matter most to our industry. We’ve made great strides so far, and as the session progresses, we want to keep you informed about the latest updates, our legislative priorities, and the key developments you need to know.
TAAHP’s Policy Priorities – Filed Bills
With nearly two months into the session, TAAHP’s policy priorities are gaining momentum. To date, three of our key housing bills for the 89th Session have been filed, and we are working hard to ensure that our remaining priorities are filed by the March 14 deadline.
Per Development Cap – HB 1865 (Moody) & SB 898 (Blanco)
This bill increases the annual per development cap from $2 million to $3 million. It enables projects to be financially viable, developers can build more units per awarded application and addresses long-term viability for LIHTC properties.
Neutral State Representative Letters – HB 4045 (Bell, Cecil Jr)
If the written statement does not express support for or against the application, applicants can instead transfer the category points by providing a resolution of support from the local government.
Educational Quality – HB 3753 (Cunningham)
This bill prohibits TDHCA from considering the educational quality of public schools in the attendance zone of a proposed development when evaluating housing projects. It prevents the use of school quality criteria in both the threshold requirements and scoring system for housing allocations. These provisions will expire on September 1, 2027.
Next steps: Timing is Everything
Rally Day Attendees:
Now that some of the priorities you have promoted are attached to bill numbers, now is a great time to follow up with legislator offices you met with on Rally Day to inform them of these bill numbers associated with those priorities you discussed with them.
All TAAHP Members:
TAAHP is closely monitoring the progress of these bills and will need all members to engage to help push them across the finish line. The next step in the process is to get these bills scheduled for a hearing. When that happens, TAAHP will reach out to members with a “call to action” to send letters to their representatives with a message to support these bills.
For more information about these bills and the progress of TAAHP’s other priorities for the 89th Legislative Session, email Whitney Parra at [email protected].
New House Committee Assignments: Focus on Intergovernmental Affairs
On February 13, Speaker of the House Dustin Burrows announced committee assignments for Texas’ 89th legislative session, marking a significant shift in the House power structure. New rules were passed requiring members of the majority party to lead all 30 standing committees, with minority members serving as vice chairs. As part of this restructuring, Speaker Burrows eliminated six committees and created two new ones: the Intergovernmental Affairs (IGA) Committee and the Delivery of Government Efficiency Committee. Twelve new subcommittees were also established.
A key change for TAAHP is the merger of the Urban Affairs and County Affairs Committees into the newly formed IGA Committee. This restructuring aims to streamline the legislative process, with bill review procedures remaining largely unchanged from prior sessions. The IGA Committee now covers a broad range of issues, including local governance, infrastructure, and state-federal relations, making it crucial for TAAHP as it will review the majority of housing-related legislation.
The IGA Committee will be chaired by Rep. Cecil Bell, Jr., a seven-term lawmaker and long-time budget writer. J.M. Lozano, the former chair of the Urban Affairs Committee, will not be serving on the IGA Committee. Only two former Urban Affairs members, Rep. Philip Cortez and Rep. Carl Tepper, have transitioned to the IGA. With nine new members joining the committee, it became a top priority for TAAHP to meet with each of them to share our legislative priorities and continue building the strong relationships we’ve had in the past. As part of this effort, we provided our “Affordable Housing 101” presentation and offered ourselves as a resource for any questions or concerns related to affordable housing. Amy Rister will serve as the Committee Director.
TAAHP has now met with all IGA Committee members, and we are pleased to report that they have shown strong interest in addressing Texas’ affordable housing challenges. As always, TAAHP will be monitoring this committee closely and ensuring that our priorities are presented to the appropriate legislators in this space.
Texas Department of Housing & Community Affairs (TDHCA) Budget Hearing Update
During the February 12, 2025, Senate Finance Hearing, David Pettit from the Legislative Budget Board and Bobby Wilkinson, TDHCA Executive Director, presented the budget recommendations for the Texas Department of Housing and Community Affairs (TDHCA) for the upcoming biennium. TDHCA is requesting a budget of $910.3 million, reflecting a 28.8% decrease from the previous biennium, primarily due to the end of federal COVID relief funding. Notably, TDHCA’s federal funding now makes up 90% of the total requested budget, which includes pandemic-related funds that have now tapered off.
In terms of key projects, TDHCA highlighted the need for capital budget approvals, such as a $3.8 million request for phase two of its multifamily data management system to streamline operations across various divisions and ensure better service delivery. The department also presented requests to modernize and consolidate several of its data management systems, costing an additional $1.7 million. After TDHCA provided its testimony, there were no questions from Senate Finance committee members.
Texas’ 89th Legislative Session Upcoming Deadlines: Mark Your Calendars
As we move through the legislative session, several key deadlines are approaching. These dates will be crucial for the bills we’re tracking:
Upcoming Committee Hearings
- Monday, March 10, 2025 at 2:00 PM – Senate Local Government Committee – Notice
- Tuesday, March 11, 2025 at 8:00 AM – House Intergovernmental Affairs Committee – Notice
The committee will hear testimony from TDHCA. - March 14, 2025: The 60-Day Milestone
- The 60th day of the session is pivotal for two reasons:
- Bill Filing Deadline: This is the last day for lawmakers to file new bills (except for certain emergency or local measures).
- Voting Begins: After this date, both the House and Senate can begin voting on all non-emergency legislation.
- The 60th day of the session is pivotal for two reasons:
- May 12, 2025: House Committees Report House Bills
- May 15, 2025: Deadline for House Bills
- May 16, 2025: Final House Readings
- May 23, 2025: Senate Bill Reporting Deadline
- May 28, 2025: Final Votes on Senate Bills
- June 2, 2025: Sine Die
- June 22, 2025: Governor’s Signature Deadline.