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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of low income housing tax credits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.67022, Government Code, is amended |
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to read as follows: |
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Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) |
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At least biennially, the board shall adopt a qualified allocation |
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plan and a corresponding manual to provide information regarding |
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the administration of and eligibility for the low income housing |
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tax credit program. The board may adopt the plan and manual |
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annually, as considered appropriate by the board. |
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(b) The department may not adopt a qualified allocation plan |
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that: |
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(1) requires as part of the threshold criteria that an |
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applicant agree to, in a land use restriction agreement or |
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otherwise, an affordability period for a proposed development that |
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is greater than the federal minimum affordability period; or |
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(2) uses a scoring system that awards points to an |
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application based on whether an applicant agrees to, in a land use |
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restriction agreement or otherwise, an affordability period for a |
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proposed development that is greater than the federal minimum |
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affordability period. |
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(c) For purposes of Subsection (b), "federal minimum |
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affordability period" means the period beginning on the first day |
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of the compliance period, as defined by Section 42(i)(1), Internal |
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Revenue Code of 1986 (26 U.S.C. Section 42(i)(1)), and ending 15 |
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years from the date on which the compliance period ends. |
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SECTION 2. Section 2306.6711(b), Government Code, is |
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amended to read as follows: |
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(b) Not later than the deadline specified in the qualified |
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allocation plan, the board shall issue commitments for available |
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housing tax credits based on the application evaluation process |
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provided by Section 2306.6710. The board may not allocate to an |
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applicant housing tax credits in any unnecessary amount, as |
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determined by the department's underwriting policy and by federal |
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law, and in any event may not allocate to the applicant housing tax |
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credits in an amount greater than $6 [$3] million in a single |
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application round or to an individual development more than $2 |
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million in a single application round. |
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SECTION 3. Section 2306.6724, Government Code, is amended |
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by adding Subsection (g) to read as follows: |
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(g) Notwithstanding other law, the department shall issue a |
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final commitment for an allocation of housing tax credits not later |
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than the 90th day following the date on which the department first |
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receives from an applicant an Internal Revenue Service Form 8609, |
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or that form's successor, for the purpose of obtaining a low-income |
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housing credit allocation and certification. |
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SECTION 4. Section 2306.1112, Government Code, is repealed. |
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SECTION 5. 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 2024 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 6. This Act takes effect September 1, 2023. |