Finance

Texas's 'Homestead Preservation District' (HPD) program is designed to:

APreserve historic homes from demolition
BProtect longtime homeowners in gentrifying areas from property tax increases by offering tax increment incentives✓ Correct
CGuarantee mortgages for first-time homebuyers
DFund infrastructure for new homestead developments

Explanation

Homestead Preservation Districts (created under Texas Property Code) are designed to assist lower-income homeowners in areas experiencing rapid gentrification by using tax increment financing mechanisms to fund affordable housing programs, helping residents remain in their communities despite rising property values and taxes.

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