AN ACT
1-1 relating to the allocation and reservation system for certain
1-2 tax-exempt private activity bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (b) and (e), Section 2, Chapter 1092,
1-5 Acts of the 70th Legislature, Regular Session, 1987 (Article
1-6 5190.9a, Vernon's Texas Civil Statutes), are amended to read as
1-7 follows:
1-8 (b) Prior to August 15 [September 1], (1) 25 [31.5] percent
1-9 of the state ceiling is available exclusively for reservations by
1-10 issuers of qualified mortgage bonds, (2) 11 [13] percent of the
1-11 state ceiling is available exclusively for reservations by issuers
1-12 of state-voted issues for the purpose of issuing a state-voted
1-13 issue, (3) 7.5 percent of the state ceiling is available
1-14 exclusively for reservations by issuers of qualified small issue
1-15 bonds and tax-exempt enterprise zone facility bonds, (4) 16.5 [7.5]
1-16 percent of the state ceiling is available exclusively for
1-17 reservations by issuers of qualified residential rental project
1-18 issues; (5) 10.5 [11] percent of the state ceiling is available
1-19 exclusively for reservations by issuers of qualified student loan
1-20 bonds authorized by Section 53.47, Education Code; and (6) 29.5
1-21 percent of the state ceiling is available exclusively for
1-22 reservations by all other issuers of bonds requiring an allocation.
1-23 (e) On and after August 15 but before September 1, that
1-24 portion of the state ceiling available for reservations shall
2-1 become available for qualified residential rental project issues in
2-2 the manner described by Section 3(h) of this Act. On and after
2-3 September 1, that portion of the state ceiling available for
2-4 reservations shall become available to any issuer for any bonds
2-5 requiring an allocation, subject to the provisions of Section 3 of
2-6 this Act.
2-7 SECTION 2. Section 3, Chapter 1092, Acts of the 70th
2-8 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
2-9 Civil Statutes), is amended by adding Subsections (h) and (i) to
2-10 read as follows:
2-11 (h) First priority for any reservations by issuers of
2-12 qualified residential rental project issues is given to projects in
2-13 which 100 percent of the residential units in the projects are
2-14 under the restriction that the maximum allowable rents are 30
2-15 percent of 50 percent of the area median family income minus an
2-16 allowance for utility costs authorized under the federal low-income
2-17 housing tax credit program. Second priority is given to projects
2-18 in which 100 percent of the residential units in the projects are
2-19 under the restriction that the maximum allowable rents are 30
2-20 percent of 60 percent of the area median family income minus an
2-21 allowance for utility costs authorized under the federal low-income
2-22 housing tax credit program. Third priority is given to any other
2-23 qualified residential rental project.
2-24 (i) The board may not reserve a portion of the state ceiling
2-25 for a first or second priority project described by Subsection (h)
2-26 of this section unless the board receives evidence that an
3-1 application has been filed with the Texas Department of Housing and
3-2 Community Affairs for the low-income housing tax credit that is
3-3 available for multifamily transactions that are at least 51 percent
3-4 financed by tax-exempt private activity bonds.
3-5 SECTION 3. Subsection (a), Section 4, Chapter 1092, Acts of
3-6 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
3-7 Vernon's Texas Civil Statutes), is amended to read as follows:
3-8 (a) An application for a reservation for a particular
3-9 program year may be filed by an issuer on or after October 10 of
3-10 the preceding year and must be on a form prescribed by the board
3-11 and signed by a member or officer of the issuer and must state:
3-12 (1) the maximum amount of the bonds in the issue
3-13 requiring an allocation pursuant to Section 146 of the code;
3-14 (2) the purpose of the bonds or a functional
3-15 description of the project, including the identification of the
3-16 user of the proceeds or project financed thereby;
3-17 (3) whether the bonds are qualified bonds;
3-18 (4) if the bonds are qualified bonds, the paragraph of
3-19 Section 141(e)(1) of the code that applies, and if Section
3-20 141(e)(1)(A) of the code applies, the paragraph of Section 142(a)
3-21 of the code that applies;
3-22 (5) if the bonds are not qualified bonds, that Section
3-23 141(b)(5) of the code applies, or in the case of transition rule
3-24 projects, the paragraph of the Tax Reform Act of 1986 that applies;
3-25 (6) a statement by the issuer, other than an issuer of
3-26 a state-voted issue or the Texas Department of Housing and
4-1 Community Affairs, that bonds are not being issued for the same
4-2 stated purpose for which the issuer has received sufficient
4-3 carryforward during a prior year or for which there exists
4-4 unexpended proceeds from, including transferred proceeds
4-5 representing unexpended proceeds from, a prior issue or issues of
4-6 bonds issued by the same issuer, or based on the issuer's
4-7 population, unless such issuer provides evidence that a binding
4-8 contract or binding contracts have been entered into, or other
4-9 evidence acceptable to the board as described in program rules, to
4-10 expend the unexpended proceeds by the later of [within] 12 months
4-11 after the date of receipt by the board of an application for a
4-12 reservation or December 31 of the program year for which the
4-13 application is being filed; and
4-14 (7) other information that the board may require.
4-15 SECTION 4. Subsection (d), Section 7, Chapter 1092, Acts of
4-16 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
4-17 Vernon's Texas Civil Statutes), is amended to read as follows:
4-18 (d) Not later than the fifth business day after the day on
4-19 which the bonds are closed, the issuer shall submit to the board:
4-20 (1) a written notice stating the delivery date of the
4-21 bonds and the principal amount of the bonds issued; [and]
4-22 (2) if the project is a first or second priority
4-23 project described by Section 3(h) of this Act, evidence from the
4-24 Texas Department of Housing and Community Affairs that an award of
4-25 low-income housing tax credits has been approved for the project;
4-26 and
5-1 (3) a certified copy of the document authorizing the
5-2 bonds and other documents relating to the issuance of the bonds,
5-3 including a statement of the bond's [bonds]:
5-4 (A) principal amount;
5-5 (B) interest rate or formula by which the
5-6 interest rate is calculated;
5-7 (C) maturity schedule; and
5-8 (D) purchaser or purchasers.
5-9 SECTION 5. Section 12, Chapter 1092, Acts of the 70th
5-10 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
5-11 Civil Statutes), is amended to read as follows:
5-12 Sec. 12. FEE. An application for a reservation or
5-13 carryforward designation must be accompanied by a nonrefundable fee
5-14 in the amount of $500. The issuer shall submit to the board a
5-15 closing fee in the amount of $1,000 or 0.025 percent of the
5-16 principal amount of the bonds certified as provided by Section
5-17 6(a)(2) of this Act, whichever is greater. One-third of the fee
5-18 shall be submitted not later than the 35th day after an issue's
5-19 reservation date, and the remaining portion of the fee at the time
5-20 of closing. An issuer exchanging a portion of the state ceiling
5-21 for mortgage credit certificates shall submit to the board a
5-22 closing fee in the amount of $1,000 or 0.0125 percent of the amount
5-23 of the state ceiling reserved, whichever is greater. One-third of
5-24 the fee shall be submitted not later than the 35th day after an
5-25 issue's reservation date, and the remaining portion of the fee at
5-26 the time of closing. An issuer receiving a carryforward
6-1 designation shall submit to the board a fee in the amount of $1,000
6-2 or 0.025 percent of the amount of the carryforward designation,
6-3 whichever is greater. The fee shall be submitted not later than
6-4 the fifth business day following the date of receipt of the
6-5 carryforward designation. The board shall deposit the proceeds of
6-6 the fees in the General Revenue Fund.
6-7 SECTION 6. (a) This Act takes effect August 1, 1999, except
6-8 as provided by Subsection (b) of this section.
6-9 (b) Section 5 of this Act and the sections of this Act
6-10 amending Subsections (b) and (e), Section 2, Chapter 1092, Acts of
6-11 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
6-12 Vernon's Texas Civil Statutes), Section 3, Chapter 1092, Acts of
6-13 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
6-14 Vernon's Texas Civil Statutes), and Subsection (d), Section 7,
6-15 Chapter 1092, Acts of the 70th Legislature, Regular Session, 1987
6-16 (Article 5190.9a, Vernon's Texas Civil Statutes), take effect
6-17 January 1, 2000.
6-18 SECTION 7. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended,
6-23 and that this Act take effect and be in force according to its
6-24 terms, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1155 passed the Senate on
April 15, 1999, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 5, 1999, by the
following vote: Yeas 29, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1155 passed the House, with
amendment, on May 3, 1999, by the following vote: Yeas 139,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor