TIRZ and Affordable Housing

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Jose Chito Vela
Posts: 42
Joined: Fri Feb 11, 2022 8:16 am

TIRZ and Affordable Housing

Post by Jose Chito Vela »

Colleagues,

It appears we can use TIRZ funds for affordable housing not just on a particular site, but anywhere in the city. The information comes from a TIRZ handbook prepared by the University of Texas Law School: https://law.utexas.edu/wp-content/uploa ... andout.pdf

The relevant statute is Texas Tax Code 311.010(b) and provides:

"An agreement may during the term of the agreement dedicate, pledge, or otherwise provide for the use of revenue in the tax increment fund to pay any project costs that benefit the reinvestment zone, including project costs relating to the cost of buildings, schools, or other educational facilities owned by or on behalf of a school district, community college district, or other political subdivision of this state, railroad or transit facilities, affordable housing, the remediation of conditions that contaminate public or private land or buildings, the preservation of the facade of a private or public building, the demolition of public or private buildings, or the construction of a road, sidewalk, or other public infrastructure in or out of the zone, including the cost of acquiring the real property necessary for the construction of the road, sidewalk, or other public infrastructure. An agreement may dedicate revenue from the tax increment fund to pay the costs of providing affordable housing or areas of public assembly in or out of the zone."

The handbook lists a number of projects in Texas cities funded by TIRZ and lists a variety of ways the tax funds were used. Given the flexibility in the use of TIRZ funds and the potential of using them for affordable housing, I just wanted to highlight this information as we discuss the South Central Waterfront and the Statesman PUD.

Chito