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A BILL TO BE ENTITLED
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AN ACT
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relating to the system by which an application for a low income |
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housing tax credit is scored. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6710(b), Government Code, is |
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amended to read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of a resolution |
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concerning the development that is voted on and adopted by the |
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following, as applicable: |
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(i) the governing body of a municipality in |
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which the proposed development site is to be located; |
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(ii) subject to Subparagraph (iii), the |
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commissioners court of a county in which the proposed development |
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site is to be located, if the proposed site is to be located in an |
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area of a county that is not part of a municipality; or |
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(iii) the commissioners court of a county |
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in which the proposed development site is to be located and the |
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governing body of the applicable municipality, if the proposed site |
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is to be located in the extraterritorial jurisdiction of a |
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municipality; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) the rent levels of the units; |
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(F) the cost of the development by square foot; |
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(G) the services to be provided to tenants of the |
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development; |
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(H) whether, at the time the complete application |
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is submitted or at any time within the two-year period preceding the |
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date of submission, the proposed development site is located in an |
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area declared to be a disaster under Section 418.014; |
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(I) quantifiable community participation with |
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respect to the development, evaluated on the basis of written |
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statements from any neighborhood organizations on record with the |
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state or county in which the development is to be located and whose |
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boundaries contain the proposed development site; and |
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(J) the level of community support for the |
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application, evaluated on the basis of a written statement from the |
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state representative who represents the district containing the |
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proposed development site; |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement; [and] |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested; and |
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(4) for an application concerning a development that |
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is or will be located in a county with a population of 1 million or |
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more but less than 4 million and that is or will be located not more |
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than two miles from a veterans hospital, veterans affairs medical |
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center, or veterans affairs health care center, encourages |
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applicants to provide a preference for leasing units in the |
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development to low income veterans. |
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SECTION 2. The change in law made by this Act applies only |
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to an application for low income housing tax credits that is |
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submitted to the Texas Department of Housing and Community Affairs |
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during an application cycle that is based on the 2022 qualified |
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allocation plan or a subsequent plan adopted by the governing board |
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of the department. An application that is submitted during an |
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application cycle that is based on an earlier qualified allocation |
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plan is governed by the law in effect on the date the application |
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cycle began, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |
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