| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the allocation of low income housing tax credits. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. The heading to Section 2306.67071, Government |
|
|
Code, is amended to read as follows: |
|
|
Sec. 2306.67071. ADDITIONAL APPLICATION REQUIREMENT: |
|
|
NOTICE [, HEARING,] AND CERTIFICATION [RESOLUTION] BY CERTAIN |
|
|
GOVERNING BODIES. |
|
|
SECTION 2. Section 2306.67071, Government Code, is amended |
|
|
by amending Subsections (c) and (d) and adding Subsection (c-1) to |
|
|
read as follows: |
|
|
(c) Except as provided by Subsection (c-1), the [The] board |
|
|
may not approve an application for housing tax credits for |
|
|
developments financed through the private activity bond program |
|
|
unless each applicable governing body described by Subsection (a) |
|
|
[the applicant] has submitted to the department a certification |
|
|
stating [certified copy of a resolution from each applicable |
|
|
governing body described by Subsection (a). The resolution must |
|
|
certify] that: |
|
|
(1) notice has been provided to the [each] governing |
|
|
body as required by Subsection (a); and |
|
|
(2) the [each] governing body has had sufficient |
|
|
opportunity to obtain a response from the applicant regarding any |
|
|
questions or concerns about the proposed development[; |
|
|
[(3) each governing body has held a hearing under |
|
|
Subsection (b); and |
|
|
[(4) after due consideration of the information |
|
|
provided by the applicant and public comment, the governing body |
|
|
does not object to the proposed application]. |
|
|
(c-1) The board may approve an application for housing tax |
|
|
credits without receiving each certification required by |
|
|
Subsection (c) if after the 60th day following the date on which all |
|
|
applicable governing bodies have received notice under Subsection |
|
|
(a) the applicant submits to the department a certification stating |
|
|
that the applicant has substantially complied with the requirements |
|
|
of Subsection (c)(2). |
|
|
(d) The department by rule may provide for additional |
|
|
requirements relating to the time and manner of the submission to |
|
|
the department of a certification [resolution] required by |
|
|
Subsection (c) or (c-1). |
|
|
SECTION 3. Section 2306.6710(b), Government Code, is |
|
|
amended to read as follows: |
|
|
(b) If an application satisfies the threshold criteria, the |
|
|
department shall score and rank the application using a point |
|
|
system that: |
|
|
(1) considers [prioritizes in descending order] |
|
|
criteria regarding: |
|
|
(A) financial feasibility of the development |
|
|
based on the supporting financial data required in the application |
|
|
that will include a project underwriting pro forma from the |
|
|
permanent or construction lender; |
|
|
(B) quantifiable community participation with |
|
|
respect to the development, evaluated on the basis of a resolution |
|
|
concerning the development that is voted on and adopted by the |
|
|
following, as applicable: |
|
|
(i) the governing body of a municipality in |
|
|
which the proposed development site is to be located; |
|
|
(ii) subject to Subparagraph (iii), the |
|
|
commissioners court of a county in which the proposed development |
|
|
site is to be located, if the proposed site is to be located in an |
|
|
area of a county that is not part of a municipality; or |
|
|
(iii) the commissioners court of a county |
|
|
in which the proposed development site is to be located and the |
|
|
governing body of the applicable municipality, if the proposed site |
|
|
is to be located in the extraterritorial jurisdiction of a |
|
|
municipality; |
|
|
(C) the income levels of tenants of the |
|
|
development; |
|
|
(D) the size and quality of the units; |
|
|
(E) the rent levels of the units; |
|
|
(F) the cost of the development by square foot; |
|
|
(G) the services to be provided to tenants of the |
|
|
development; |
|
|
(H) whether, at the time the complete application |
|
|
is submitted or at any time within the two-year period preceding the |
|
|
date of submission, the proposed development site is located in an |
|
|
area declared to be a disaster under Section 418.014; |
|
|
(I) quantifiable community participation with |
|
|
respect to the development, evaluated on the basis of written |
|
|
statements from any neighborhood organizations on record with the |
|
|
state or county in which the development is to be located and whose |
|
|
boundaries contain the proposed development site; and |
|
|
(J) the level of community support for the |
|
|
application, evaluated on the basis of a written statement from the |
|
|
state representative who represents the district containing the |
|
|
proposed development site; |
|
|
(2) uses criteria imposing penalties on applicants or |
|
|
affiliates who have requested extensions of department deadlines |
|
|
relating to developments supported by housing tax credit |
|
|
allocations made in the application round preceding the current |
|
|
round or a developer or principal of the applicant that has been |
|
|
removed by the lender, equity provider, or limited partners for its |
|
|
failure to perform its obligations under the loan documents or |
|
|
limited partnership agreement; and |
|
|
(3) encourages applicants to provide free notary |
|
|
public service to the residents of the developments for which the |
|
|
allocation of housing tax credits is requested. |
|
|
SECTION 4. Section 2306.6725(b), Government Code, is |
|
|
amended to read as follows: |
|
|
(b) The department shall provide appropriate incentives as |
|
|
determined through the qualified allocation plan to reward |
|
|
applicants who agree to: |
|
|
(1) equip the development that is the basis of the |
|
|
application with energy saving devices that meet the standards |
|
|
established by the state energy conservation office; or |
|
|
(2) provide to a qualified entity, in a land use |
|
|
restriction agreement in accordance with Section 2306.6726, a right |
|
|
of first refusal to purchase the development at the minimum price |
|
|
provided in, and in accordance with the requirements of, Section |
|
|
42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section |
|
|
42(i)(7))[; and |
|
|
[(2) locate the development in a census tract in which |
|
|
there are no other existing developments supported by housing tax |
|
|
credits]. |
|
|
SECTION 5. Section 2306.67071(b), Government Code, is |
|
|
repealed. |
|
|
SECTION 6. The change in law made by this Act applies only |
|
|
to an application for low income housing tax credits that is |
|
|
submitted to the Texas Department of Housing and Community Affairs |
|
|
during an application cycle that is based on the 2022 qualified |
|
|
allocation plan or a subsequent plan adopted by the governing board |
|
|
of the department. An application that is submitted during an |
|
|
application cycle that is based on an earlier qualified allocation |
|
|
plan is governed by the law in effect on the date the application |
|
|
cycle began, and the former law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 7. This Act takes effect September 1, 2021. |