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A BILL TO BE ENTITLED
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AN ACT
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relating to certain occupancy preferences given by developments |
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supported with a low income housing tax credit allocation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6701, Government Code, is amended |
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to read as follows: |
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Sec. 2306.6701. PURPOSE. (a) The department shall |
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administer the low income housing tax credit program to: |
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(1) encourage the development and preservation of |
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appropriate types of rental housing for households, including |
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members of a group specified by Subsection (b), that have |
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difficulty finding suitable, affordable rental housing in the |
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private marketplace; |
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(2) maximize the number of suitable, affordable |
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residential rental units added to the state's housing supply; |
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(3) prevent losses for any reason to the state's supply |
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of suitable, affordable residential rental units by enabling the |
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rehabilitation of rental housing or by providing other preventive |
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financial support under this subchapter; and |
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(4) provide for the participation of for-profit |
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organizations and provide for and encourage the participation of |
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nonprofit organizations in the acquisition, development, and |
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operation of affordable housing developments in urban and rural |
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communities. |
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(b) Consistent with Section 42(g)(9), Internal Revenue Code |
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of 1986, a development supported with a housing tax credit |
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allocation may give an occupancy preference to teachers and other |
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employees of the school district in which the development is |
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located, and members of the households of those persons, if all |
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other occupancy requirements under state and federal law are |
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satisfied. |
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SECTION 2. 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 2026 qualified |
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allocation plan or a subsequent plan adopted by the governing board |
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of the department under Section 2306.67022, Government Code. An |
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application that is submitted during an application cycle that is |
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based on an earlier qualified allocation plan is governed by the law |
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in effect on the date the application cycle began, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |