Relating to the issuance of private activity bonds for qualified residential rental projects.

HB 1342 amends Texas law to change how tax-exempt private activity bonds are allocated for rental housing projects. It establishes two priority tiers for bond reservations: second priority for projects with binding construction contracts entered before application (requiring $500,000+ in pre-application spending), and third priority for projects with 50% of units reserved for tenants earning ≤50% of area median income (at 30% of that income level) and 50% for tenants earning ≤80% of area median income (at 30% of that level). The bill directly affects developers seeking bond financing to build or rehabilitate affordable rental housing. It focuses on concrete income thresholds and project timing requirements, without altering tenant eligibility or bond issuance rules beyond these priority mechanisms.