By Hill                                         H.B. No. 2578

      75R7226 SAW-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale of property to which a federal low income

 1-3     housing tax credit applies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter C, Chapter 2306, Government Code, is

 1-6     amended by adding Section 2306.057 to read as follows:

 1-7           Sec. 2306.057.  SALE OF PROPERTY UNDER LOW INCOME HOUSING TAX

 1-8     CREDIT PROGRAM.  (a)  In this section:

 1-9                 (1)  "Compliance period" has the meaning assigned by

1-10     Section 42(i)(1), Internal Revenue Code of 1986 (26 U.S.C. Section

1-11     42(i)(1)).

1-12                 (2)  "Qualified nonprofit organization" has the meaning

1-13     assigned by Section 42(h)(5)(C), Internal Revenue Code of 1986 (26

1-14     U.S.C. Section 42(h)(5)(C)).

1-15           (b)  If a recipient of a low income housing tax credit

1-16     intends to sell the property to which the credit applies, the

1-17     recipient shall notify the department of the recipient's intent to

1-18     sell the property not later than one year before the 15-year

1-19     compliance period for the property expires.

1-20           (c)  The department shall notify qualified nonprofit

1-21     organizations of the opportunity to purchase the recipient's

1-22     property.

1-23           (d)  The recipient shall grant a right of first refusal to a

1-24     nonprofit organization that makes a reasonable offer to purchase

 2-1     the property for low income housing purposes.

 2-2           (e)  The department shall adopt rules to implement this

 2-3     section.

 2-4           SECTION 2.  This Act takes effect September 1, 1997.

 2-5           SECTION 3.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended.