(a) To be designated as a district within a municipality described by Section 373A.003(a) under this subchapter, an area must be composed of census tracts forming a spatially compact area with:
(1) fewer than 75,000 residents;
(2) an overall poverty rate that is at least two times the poverty rate for the entire municipality; and
(3) in each census tract within the area, a median family income that is less than 80 percent of the median family income for the entire municipality.

(b) To be designated as a district within a municipality described by Section 373A.003(b) under this subchapter, an area must be composed of census tracts forming a spatially compact area contiguous to a central business district and with:
(1) fewer than 75,000 residents;
(2) a median family income that is less than $30,000 according to the last decennial census; and
(3) an overall poverty rate that is at least two times the poverty rate for the entire municipality.
(c) An area that is designated as a district under this subchapter may retain its designation as a district regardless of whether the area continues to meet the eligibility criteria provided by this section, except that an area that does not elect to retain its designation as permitted by this subsection must meet all eligibility criteria to be considered for subsequent redesignation as a district.