76R12782 GCH-D
By Ehrhardt H.B. No. 842
Substitute the following for H.B. No. 842:
By Ehrhardt C.S.H.B. No. 842
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax-exempt private activity bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 2(b) and (e), Chapter 1092, Acts of the
1-5 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
1-6 Texas Civil Statutes), are amended to read as follows:
1-7 (b) Prior to August 15 [September 1], (1) 25 [31.5] percent
1-8 of the state ceiling is available exclusively for reservations by
1-9 issuers of qualified mortgage bonds, (2) 11 [13] percent of the
1-10 state ceiling is available exclusively for reservations by issuers
1-11 of state-voted issues for the purpose of issuing a state-voted
1-12 issue, (3) 7.5 percent of the state ceiling is available
1-13 exclusively for reservations by issuers of qualified small issue
1-14 bonds and tax-exempt enterprise zone facility bonds, (4) 16.5 [7.5]
1-15 percent of the state ceiling is available exclusively for
1-16 reservations by issuers of qualified residential rental project
1-17 issues; (5) 10.5 [11] percent of the state ceiling is available
1-18 exclusively for reservations by issuers of qualified student loan
1-19 bonds authorized by Section 53.47, Education Code; and (6) 29.5
1-20 percent of the state ceiling is available exclusively for
1-21 reservations by all other issuers of bonds requiring an allocation.
1-22 (e) On and after August 15 but before September 1, that
1-23 portion of the state ceiling available for reservations shall
1-24 become available for qualified residential rental project issues in
2-1 the manner described by Section 3(h) of this Act. On and after
2-2 September 1, that portion of the state ceiling available for
2-3 reservations shall become available to any issuer for any bonds
2-4 requiring an allocation, subject to the provisions of Section 3 of
2-5 this Act.
2-6 SECTION 2. Section 3, Chapter 1092, Acts of the 70th
2-7 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
2-8 Civil Statutes), is amended by adding Subsections (h) and (i) to
2-9 read as follows:
2-10 (h) First priority for any reservations by issuers of
2-11 qualified residential rental project issues is given to projects in
2-12 which 100 percent of the residential units in the projects are
2-13 under the restriction that the maximum allowable rents are 30
2-14 percent of 50 percent of the area median family income minus an
2-15 allowance for utility costs authorized under the federal low-income
2-16 housing tax credit program. Second priority is given to projects
2-17 in which 100 percent of the residential units in the projects are
2-18 under the restriction that the maximum allowable rents are 30
2-19 percent of 60 percent of the area median family income minus an
2-20 allowance for utility costs authorized under the federal low-income
2-21 housing tax credit program. Third priority is given to any other
2-22 qualified residential rental project.
2-23 (i) The board may not reserve a portion of the state ceiling
2-24 for a first or second priority project described by Subsection (h)
2-25 of this section unless the board receives evidence that an
2-26 application has been filed with the Texas Department of Housing and
2-27 Community Affairs for the low-income housing tax credit that is
3-1 available for multifamily transactions that are at least 51 percent
3-2 financed by tax-exempt private activity bonds.
3-3 SECTION 3. Section 7(d), Chapter 1092, Acts of the 70th
3-4 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
3-5 Civil Statutes), is amended to read as follows:
3-6 (d) Not later than the fifth business day after the day on
3-7 which the bonds are closed, the issuer shall submit to the board:
3-8 (1) a written notice stating the delivery date of the
3-9 bonds and the principal amount of the bonds issued; [and]
3-10 (2) if the project is a first or second priority
3-11 project described by Section 3(h) of this Act, evidence from the
3-12 Texas Department of Housing and Community Affairs that an award of
3-13 low-income housing tax credits has been approved for the project;
3-14 and
3-15 (3) a certified copy of the document authorizing the
3-16 bonds and other documents relating to the issuance of the bonds,
3-17 including a statement of the bond's [bonds]:
3-18 (A) principal amount;
3-19 (B) interest rate or formula by which the
3-20 interest rate is calculated;
3-21 (C) maturity schedule; and
3-22 (D) purchaser or purchasers.
3-23 SECTION 4. This Act takes effect January 1, 2000.
3-24 SECTION 5. The importance of this legislation and the
3-25 crowded condition of the calendars in both houses create an
3-26 emergency and an imperative public necessity that the
3-27 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.