Relating to the allocation of low income housing tax credits.

Contracts

• Purchase and Sale Agreements (PSAs): Audit all active land contracts and options. If you have contingencies specifically tied to "Educational Quality Points" or "School Rating Thresholds," execute amendments immediately. These contingencies are now legally obsolete and unenforceable as QAP requirements.
• Consultant Scopes: Renegotiate agreements with QAP consultants. Remove billable hours allocated to analyzing TEA school ratings or securing school attendance zone verification letters for the 2026/2027 cycles.

Hiring/Training

• Acquisition Teams: Retrain land acquisition staff immediately. They must stop prioritizing sites solely based on "A" or "B" rated schools, as these sites often command a premium that no longer yields a competitive scoring advantage.
• Underwriting: Shift focus to sites that maximize points in remaining categories (e.g., disaster mitigation, proximity to jobs/transit), as scoring compression will increase significantly.

Reporting & Record-Keeping

• Application Omissions: Do not include TEA accountability rating reports in your 2026 or 2027 LIHTC applications.
• Investor Data: Continue to collect school quality data for private equity investors and lenders, as their internal underwriting standards likely remain unchanged despite the state's shift. Keep this data separate from the TDHCA application.

Fees & Costs

• Land Cost Reallocation: Stop paying "school district premiums." Reallocate capital toward sites that may have lower school ratings but higher scores in other amenity categories.
• No New State Fees: There are no new statutory fees associated with this bill.