Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.

HB 2985 amends Texas law to clarify which housing developments qualify for low-income housing tax credits. It specifically defines "at-risk developments" as those receiving federal subsidies (like Section 8 housing assistance or HUD-insured mortgages) where affordability requirements are nearing expiration or mortgages are ending. The bill also includes developments planning to rehabilitate housing units funded under Section 9 of the U.S. Housing Act of 1937, owned by public housing authorities. This change directly affects housing developers and public housing entities managing subsidized properties in Texas, ensuring these developments remain eligible for tax credits to maintain affordable housing. The policy update focuses on concrete eligibility criteria without altering credit amounts or application processes.