By: Bernal, Geren (Senate Sponsor - Hughes) H.B. No. 191
         (In the Senate - Received from the House May 4, 2023;
  May 17, 2023, read first time and referred to Committee on Local
  Government; May 22, 2023, reported favorably by the following
  vote:  Yeas 9, Nays 0; May 22, 2023, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the evaluation of applications for certain financial
  assistance administered by the Texas Department of Housing and
  Community Affairs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.359(a), Government Code, is amended
  to read as follows:
         (a)  In evaluating an application for an issuance of private
  activity bonds, the department shall score and rank the application
  using a point system based on criteria that are adopted by the
  department, including criteria regarding:
               (1)  the income levels of tenants of the development,
  consistent with the funding priorities provided by Section
  1372.0321;
               (2)  the rent levels of the units;
               (3)  the level of community support for the
  application;
               (4)  the period of guaranteed affordability for low
  income tenants;
               (5)  the cost per unit of the development;
               (6)  the size, quality, and amenities of the units;
               (7)  the services to be provided to tenants of the
  development; [and]
               (8)  whether, at the time the complete application is
  submitted, all units that are:
                     (A)  owned by the applicant are equipped with air
  conditioning; and
                     (B)  owned or operated by a housing authority or
  other governmental entity, from which the applicant receives
  financial assistance or with which the applicant participates in
  projects for the development of affordable housing, are equipped
  with air conditioning; and
               (9)  other criteria as developed by the board.
         SECTION 2.  Section 2306.6710, Government Code, is amended
  by amending Subsection (b) and adding Subsections (h) and (i) 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)  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; and
                     (K)  whether, at the time the complete application
  is submitted, all units that are:
                           (i)  owned by the applicant are equipped
  with air conditioning; and
                           (ii)  owned or operated by a housing
  authority or other governmental entity, from which the applicant
  receives financial assistance or with which the applicant
  participates in projects for the development of affordable housing,
  are equipped with air conditioning;
               (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;
               (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; and
               (4)  for an application concerning a development that
  is or will be located in a county with a population of 1 million or
  more but less than 4 million and that is or will be located not more
  than two miles from a veterans hospital, veterans affairs medical
  center, or veterans affairs health care center, encourages
  applicants to provide a preference for leasing units in the
  development to low income veterans.
         (h)  If an applicant requests in writing a statement of
  support under Subsection (b)(1)(J) from the state representative
  who represents the district containing the proposed development
  site, the request from the applicant must include information
  disclosing the percentage of units owned or operated as described
  by Subsection (b)(1)(K) that are equipped with air conditioning.
         (i)  In assigning points to an application under Subsection
  (b)(1)(K), the department shall award negative points if any of the
  units that are owned or operated as described by that paragraph are
  not equipped with air conditioning.
         SECTION 3.  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 2024 qualified
  allocation plan or a subsequent plan adopted by the governing board
  of the department under Section 2306.67022, Government Code. 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 4.  This Act takes effect September 1, 2023.
 
  * * * * *