Affordable housing is likely to be a big topic of discussion when the Legislature meets for its 89th session on Tuesday. A changed legal landscape will allow state lawmakers to implement widespread changes to local development rules, while a projected budget surplus of $20 billion has others eyeing property tax changes to comfort current property holders.
There’s widespread consensus among Texans, lawmakers and policy groups from across the political spectrum that quality housing is scarce, and that existing housing is too expensive.
The office of state comptroller Glenn Hegar, a longtime Republican, last year published a report that estimated that Texas needs more than 300,000 new units in order to meet demand. Lt. Gov. Dan Patrick has announced that he wants the Senate to prioritize “recommendations to reduce regulatory barriers and strengthen property rights” in its upcoming session. And the conservative Texas Public Policy Foundation has crafted bills to supersede local zoning regulations to try to expedite new developments.
Democrats, too, are aiming to tackle the issue. Many have sizable constituencies in major cities, where rents have nearly universally increased sharply.
“The lieutenant governor has talked about housing, the governor has talked about housing, the public is talking about it,” state Sen. Nathan Johnson, D-Dallas, told D Magazine. “Something like 90 percent of the public says it’s an issue. It’s going to be an issue, and the Legislature will do something.”
An analysis of pre-filed bills for this session by the magazine suggests two major categories of proposals.
First, there are those that would aim to continue to cut property taxes as lawmakers did last session, which would reduce cost increases for existing landowners.
For example, last year, lawmakers approved a 20% cap on property tax increases for residential properties. Two separate bills this session, House Bill 1622 and House Bill 1430, would seek to extend that cap to commercial properties, too.
Then, there are those that would change development regulations in local communities in order to make it easier to build new housing. That could mean overriding zoning laws that restrict new construction to single family homes, instead of duplexes, triplexes, mixed use housing, apartments or detached onsite rental units. (Those last buildings go by many names, from the official accessory dwelling units, or ADUs, to “granny flats” or “mother-in-law apartments.”)
State lawmakers can make those local zoning changes thanks to a 2023 law, nicknamed the “Death Star” bill by critics and supporters alike, that prevents local governments from enacting rules that go beyond what’s laid out in state law broadly, such as requiring mandatory paid sick leave from employers. Though a judge ruled that law unconstitutional, it remains in effect pending an appeal by the state attorney general.
Support for those two strategies is not necessarily limited by party. Angleton Republican Cody Vasut has prefiled House Bill 165, which would abolish property taxes in Texas and any Texas municipalities, and would establish a committee to produce a “comprehensive study of alternate methods of taxation.”
The Legislative Budget Board determined that eliminating property tax would reduce state revenues by nearly $82 billion, or more than half of its total revenues over its two year budget cycle, D Magazine reported.
But Vasut also filed House Bill 878, which would override any municipal laws that prevent accessory dwelling units from being built on lots zoned for single-family housing, and override local control over the size or location of those units.
San Antonio Democratic Rep. Diego Bern also filed a zoning bill. House Bill 327 would prevent new housing developments from being delayed or blocked by objections from neighbors if the developer applied for or received federal Low-Income Housing Tax Credits.
The Legislature convenes at noon on Tuesday for the first day of session.