By Madla S.B. No. 1215
77R7458 SGA-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to priorities for issues of qualified residential rental
1-3 project bonds under the private activity bond allocation program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1372.023, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
1-8 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a)
1-9 Until August 25, of that portion of the state ceiling that is
1-10 available exclusively for reservations by issuers of qualified
1-11 mortgage bonds, one-third is available exclusively to the Texas
1-12 Department of Housing and Community Affairs for the purpose of
1-13 issuing qualified mortgage bonds.
1-14 (b) After January 1, of that portion of the state ceiling
1-15 that is available exclusively for reservations by issuers of
1-16 qualified residential rental project bonds, one-quarter is
1-17 available exclusively to the Texas Department of Housing and
1-18 Community Affairs for the purpose of issuing qualified residential
1-19 rental project bonds throughout the uniform state service regions.
1-20 SECTION 2. Subchapter B, Chapter 1372, Government Code, is
1-21 amended to conform to Section 2, Chapter 131, Acts of the 76th
1-22 Legislature, Regular Session, 1999, and is further amended by
1-23 adding Section 1372.0321 to read as follows:
1-24 Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF
2-1 QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) After January 1,
2-2 the remainder, after the dedication made by Section 1372.023(b), of
2-3 the state ceiling available exclusively for use by issuers of
2-4 qualified residential rental project bonds shall be allocated
2-5 throughout the uniform state service regions according to a formula
2-6 based on the population of each uniform state service region, with
2-7 priority given to reservations by issuers of qualified residential
2-8 rental project bonds as provided by Subsection (c).
2-9 (b) On or after July 1, any unreserved portion of the
2-10 remainder, after the dedication made by Section 1372.023(b), of the
2-11 state ceiling available exclusively for use by issuers of qualified
2-12 residential rental project bonds shall become available to any
2-13 issuer of any qualified residential rental project bonds requiring
2-14 an allocation, subject to Subsection (c).
2-15 (c) In granting reservations to issuers of qualified
2-16 residential rental project issues, the board shall:
2-17 (1) give first priority to projects in which 100
2-18 percent of the residential units in the projects are under the
2-19 restriction that the maximum allowable rents are an amount equal to
2-20 30 percent of 50 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;
2-23 (2) give second priority to projects in which 100
2-24 percent of the residential units in the projects are under the
2-25 restriction that the maximum allowable rents are an amount equal to
2-26 30 percent of 60 percent of the area median family income minus an
2-27 allowance for utility costs authorized under the federal low-income
3-1 housing tax credit program; and
3-2 (3) give third priority to any other qualified
3-3 residential rental project.
3-4 (d) The board may not reserve a portion of the state ceiling
3-5 for a first or second priority project described by Subsection (c)
3-6 unless the board receives evidence that an application has been
3-7 filed with the Texas Department of Housing and Community Affairs
3-8 for the low-income housing tax credit that is available for
3-9 multifamily transactions that are at least 51 percent financed by
3-10 tax-exempt private activity bonds.
3-11 SECTION 3. This Act takes effect September 1, 2001.