HBA-SEB H.B. 3655 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3655 By: Oliveira Urban Affairs 4/1/1999 Introduced BACKGROUND AND PURPOSE The Texas Department of Housing and Community Affairs divides the state into 10 planning regions called Comprehensive Housing Affordability Strategy (CHAS) regions. Currently, none of these regions have a central review board responsible for administering federal low income housing tax credits. Such a design would allow each CHAS region to strategically plan for addressing the region's housing needs. H.B. 3655 establishes a review panel for each CHAS region in order to address housing needs in each region and to propose an allocation plan for each region's share of low income housing tax credits. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter BB, Chapter 2306, Government Code, as added by Chapter 980, Acts of the 75th Legislature, Regular Session, 1997, by adding Section 2306.6705, as follows: Sec. 2306.6705. DEFINITIONS. Defines "region" as a geographical region in this state identified in the state low income housing plan. Defines "review panel" as a tax credit review panel established under this subchapter (Low Income Housing Tax Credit Program). SECTION 2. Amends Section 2306.671, Government Code, as follows: Sec. 2306.671. New title: QUALIFIED ALLOCATION PLAN. Provides that the qualified allocation plan must state that low income housing tax credits shall be allocated to a region based on the population of the region. The Texas Department of Housing and Community Affairs (TDHCA) uses the qualified allocation plan to set criteria and priorities for the allocation of tax credits. Deletes existing text regarding the application process for a low income housing tax credit. Deletes existing text requiring the governing board of TDHCA (board) to issue a commitment for allocation of the credit. Deletes exiting title which read, "DEADLINES FOR ALLOCATION OF LOW INCOME HOUSING TAX CREDITS." Makes conforming changes. SECTION 3. Amends Subchapter BB, Chapter 2306, Government Code, as added by Chapter 980, Acts of the 75th Legislature, Regular Session, 1997, by adding Section 2306.6715, as follows: Sec. 2306.6715. REVIEW PANEL. (a) Authorizes a region to establish a tax credit review panel to propose an allocation plan for the region's share of low income housing tax credits on a majority vote of the state representatives whose districts cover part of the region. (b) Provides that a review panel consists of nine members appointed by a majority vote of those state representatives. Establishes that the members serve staggered two-year terms, with four or five members' terms expiring February 1 of each year. Prohibits a member from receiving compensation for the member's service on the review panel. Prohibits a member from applying for a low income housing tax credit proposed for allocation by the review panel during the member's term and through two years following the member's term. (c) Requires an applicant to apply by May 15 for low income housing tax credit to the review panel established by the region in which the property proposed for development is located. Requires the applicant to apply to TDHCA if a review panel has not been established for that region. (d) Requires each region to submit a proposed allocation plan to the board by June 30. Requires TDHCA to allocate a region's share of tax credits to regions that make timely submissions if the region does not submit the proposed plan on or before that date. (e) Requires the board to approve each region's proposed allocation plan unless the proposed plan violates state or federal law, in which event the board is required to direct TDHCA to develop an alternative allocation plan for the region. (f) Requires TDHCA, by July 31, to allocate a region's share of tax credits to qualified applicants who apply to develop property located in that region if the region does not establish a review panel. (g) Requires the board to approve or disapprove a review panel's proposed allocation of low income housing tax credits each year in accordance with the qualified allocation plan by July 31. SECTION 4. Amends Section 2306.672, Government Code, to require TDHCA to publish in a qualified allocation plan any discretionary factor that TDHCA will consider in evaluating a review panel's proposed allocation plan or in scoring an application. Makes conforming and nonsubstantive changes. SECTION 5. Amends Section 2306.675, Government Code, as follows: Sec. 2306.675. New title: WAITING LIST. Requires the review panel or board, as applicable, to establish a waiting list of additional applications, ranked in descending order by priority, to be allocated tax credits if additional credits become available. Deletes existing text regarding the process of allocating low income housing tax credits. Deletes existing title which read, "ALLOCATION OF LOW INCOME HOUSING TAX CREDIT." Makes conforming changes. SECTION 6. Amends Section 2306.677, Government Code, to make conforming and nonsubstantive changes. SECTION 7. Amends Section 2306.678(b), Government Code, to require TDHCA to hold at least three public hearings in each region, rather than in different regions, of the state to receive public comments on low income housing tax credit applications. SECTION 8. Makes application of this Act prospective. SECTION 9. Effective date: September 1, 1999. SECTION 10. Emergency clause.