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A BILL TO BE ENTITLED
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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 1372.0321, Government Code, is amended |
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by adding Subsections (a-1) and (a-2) and amending Subsections (b), |
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(c), and (d) to read as follows: |
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(a-1) 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 projects: |
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(1) for which an application: |
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(A) was filed on or before October 20 of the |
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program year occurring two years before the current program year; |
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and |
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(B) was not withdrawn and did not receive a bond |
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reservation; |
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(2) that meet at least one requirement of Subsection |
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(b); and |
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(3) for which: |
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(A) a binding contract to incur significant |
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expenditures for construction, reconstruction, or rehabilitation |
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was entered into before submission of the application; |
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(B) significant expenditures for construction, |
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reconstruction, or rehabilitation were readily identifiable with |
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and necessary to carry out a binding contract for the supply of |
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property or services or the sale of output; or |
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(C) significant expenditures were paid or |
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incurred before submission of the application. |
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(a-2) For purposes of Subsection (a-1), "significant |
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expenditures" means expenditures that exceed the lesser of: |
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(1) $500,000; or |
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(2) 10 percent of the reasonably anticipated cost of |
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the project. |
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(b) In granting reservations to issuers of qualified |
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residential rental project issues, the board shall give third |
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[second] 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 80 [60] percent |
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of the area median family income minus an allowance for utility |
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costs authorized under the federal low-income housing tax credit |
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program; and |
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(ii) reserved for families and individuals |
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earning not more than 80 [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 80 [60] percent |
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of the area median family income minus an allowance for utility |
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costs authorized under the federal low-income housing tax credit |
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program; and |
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(ii) reserved for families and individuals |
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earning not more than 80 [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, on average, an amount equal to 30 percent of 60 |
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percent of the area median family income minus an allowance for |
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utility costs authorized under the federal low-income housing tax |
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credit program; and |
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(ii) reserved for families and individuals |
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earning, on average, not more than 60 percent of the area median |
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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) In granting reservations to issuers of qualified |
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residential rental project issues, the board shall give fourth |
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[third] priority to projects in which 80 percent or more of the |
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residential units in the project are: |
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(1) under the restriction that the maximum allowable |
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rents are, on average, an amount equal to 30 percent of 60 percent |
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of the area median family income minus an allowance for utility |
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costs authorized under the federal low-income housing tax credit |
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program; and |
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(2) reserved for families and individuals earning, on |
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average, not more than 60 percent of the area median income. |
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(d) In granting reservations to issuers of qualified |
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residential rental project issues, the board shall give fifth |
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[fourth] priority to any other qualified residential rental |
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project. |
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SECTION 2. 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; and |
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(2) [if the project is a project entitled to first, |
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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 3. Section 1372.0321(e), Government Code, is |
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repealed. |
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SECTION 4. The change in law made by this Act in amending |
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Chapter 1372, Government Code, applies to the allocation of the |
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available state ceiling under Chapter 1372 beginning with the 2026 |
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program year. |
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SECTION 5. This Act takes effect September 1, 2025. |