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The Texas law threatening to break the affordable housing equation 

Oct 22, 2025By

A quiet change in Texas law this past spring could ignite a crisis in affordable housing – and send a chilling signal to investors nationwide.

House Bill 21 (HB 21), passed in May, drastically rewrites the rules for how affordable housing partnerships in Texas qualify for property tax abatements. For years, those abatements have been one of the few effective tools local governments had to make below-market housing financially feasible amid Texas’ severe housing shortage.