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AN ACT
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relating to the issuance of private activity bonds for qualified |
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residential rental projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1202.003, Government Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Subsection (b), if Section |
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1372.037(b) applies with respect to the issuance of qualified |
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residential rental project bonds in a program year, the attorney |
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general must certify the issuer's compliance with that subsection |
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before approving the issuance of those bonds. A certification made |
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under this subsection may be based solely on a written verification |
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provided by the issuer on request of the attorney general. |
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SECTION 2. Section 1372.0231(f), Government Code, is |
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amended to read as follows: |
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(f) In each area described by Subsection (d) [or (e)], the |
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board shall grant reservations based on the priority levels of |
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proposed projects as described by Section 1372.0321. |
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SECTION 3. Section 1372.0321, Government Code, is amended |
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to read as follows: |
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Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS |
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OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting |
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reservations to issuers of qualified residential rental project |
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issues, the board shall give first priority to projects that: |
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(1) during the four-year period preceding the date of |
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the application, have: |
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(A) filed an application for a low-income housing |
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tax credit with the Texas Department of Housing and Community |
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Affairs; and |
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(B) closed on a previous reservation of bonds in |
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accordance with Section 1372.042, as determined based on the date |
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of allocation of those bonds; |
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(2) require a subsequent issuance of bonds to maintain |
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compliance with the percentage requirement described by Subsection |
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(e); and |
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(3) have not previously applied for a subsequent |
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issuance of bonds under this subsection. |
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(b) In granting reservations to issuers of qualified |
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residential rental project issues, the board shall give second |
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priority to: |
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(1) projects in which: |
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(A) 50 percent of the residential units in the |
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project are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 50 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families and individuals |
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earning not more than 50 percent of the area median income; and |
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(B) the remaining 50 percent of the residential |
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units in the project are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families and individuals |
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earning not more than 60 percent of the area median income; |
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(2) projects in which: |
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(A) 15 percent of the residential units in the |
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project are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 30 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families and individuals |
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earning not more than 30 percent of the area median income; and |
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(B) the remaining 85 percent of the residential |
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units in the project are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families and individuals |
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earning not more than 60 percent of the area median income; |
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(3) projects: |
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(A) in which 100 percent of the residential units |
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in the project are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families and individuals |
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earning not more than 60 percent of the area median income; and |
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(B) which are located in a census tract in which |
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the median income, based on the most recent information published |
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by the United States Bureau of the Census, is higher than the median |
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income for the county, metropolitan statistical area, or primary |
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metropolitan statistical area in which the census tract is located |
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as established by the United States Department of Housing and Urban |
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Development; or |
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(4) on or after June 1, projects that are located in |
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counties, metropolitan statistical areas, or primary metropolitan |
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statistical areas with area median family incomes at or below the |
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statewide median family income established by the United States |
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Department of Housing and Urban Development. |
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(c) [(a-1)] In granting reservations to issuers of |
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qualified residential rental project issues, the board shall give |
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third [second] priority to projects in which 80 percent or more of |
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the residential units in the project are: |
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(1) under the restriction that the maximum allowable |
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rents are an amount equal to 30 percent of 60 percent of the area |
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median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(2) reserved for families and individuals earning not |
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more than 60 percent of the area median income. |
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(d) [(a-2)] In granting reservations to issuers of |
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qualified residential rental project issues, the board shall give |
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fourth [third] priority to any other qualified residential rental |
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project. |
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(e) [(b)] The board may not reserve a portion of the state |
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ceiling for a first, [or] second, or third priority project |
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described by this section unless the board receives evidence that |
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an application has been filed with the Texas Department of Housing |
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and Community Affairs for the low-income housing tax credit that is |
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available for multifamily transactions that are at least 51 percent |
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financed by tax-exempt private activity bonds. |
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SECTION 4. Section 1372.037, Government Code, is amended by |
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adding Subsection (b) to read as follows: |
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(b) This subsection applies only to projects that are |
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granted a reservation of a portion of the available state ceiling |
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for a program year under Subsection (a)(5). If for a program year |
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the total amount of qualified residential rental project bonds for |
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which reservations are sought exceeds, as of October 20 of the |
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preceding year, 55.75 percent of the state ceiling, the amount of |
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bonds issued to each project may not exceed 55 percent of the |
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reasonably expected aggregate basis of the project and the land on |
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which the project is or will be located. |
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SECTION 5. Section 1372.042(d), Government Code, is amended |
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to read as follows: |
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(d) Not later than the fifth business day after the date on |
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which the bonds are closed, the issuer shall submit to the board: |
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(1) a written notice stating the delivery date of the |
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bonds and the principal amount of the bonds issued; |
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(2) if the project is a project entitled to first, [or] |
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second, or third priority under Section 1372.0321, evidence from |
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the Texas Department of Housing and Community Affairs that an award |
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of low-income housing tax credits has been approved for the |
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project; and |
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(3) a certified copy of the document authorizing the |
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bonds and any other document relating to the issuance of the bonds, |
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including a statement of the bonds': |
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(A) principal amount; |
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(B) interest rate or formula by which the |
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interest rate is computed; |
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(C) maturity schedule; and |
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(D) purchaser or purchasers. |
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SECTION 6. The change in law made by this Act in adding |
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Section 1202.003(b-1), Government Code, and in amending Chapter |
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1372, Government Code, applies to the allocation of the available |
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state ceiling under Chapter 1372 beginning with the 2024 program |
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year. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1766 was passed by the House on May 2, |
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2023, by the following vote: Yeas 125, Nays 19, 3 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1766 was passed by the Senate on May |
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24, 2023, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |