Amend CSSB 999 as follows:                                                   
	(1)  In SECTION 1 of the bill, in added Section 2306.186(d), 
Government Code (page 2, lines 8-14), strike "The reserve must be 
continually maintained, with withdrawals permitted only to pay for 
the cost of capital improvements needed for the development to 
maintain habitability according to federal standards or local 
codes, whichever are more restrictive.  Evidence of an appropriate 
level of funding in the reserve accounts must be established by an 
annual audit as described by Subsection (k).".
	(2)  In SECTION 1 of the bill, in added Section 2306.186(e), 
Government Code (page 2, lines 17-23), strike "including low-income 
housing tax credits, the owner of a multifamily rental housing 
development shall inspect the development at least once during each 
five-year period to assess the repair needs of the development.  The 
owner shall submit the report to the department not later than the 
30th day after the date of the inspection and after submission of 
the report shall complete the identified repairs in a timely 
manner" and substitute "the owner of a multifamily rental housing 
development shall contract for a third-party physical needs 
assessment at appropriate intervals that are consistent with lender 
requirements with respect to the development.  If the first lien 
lender does not require a third-party physical needs assessment or 
if the department is the first lien lender, the owner shall contract 
with a third party to conduct a physical needs assessment at least 
once during each five-year period beginning with the 11th year 
after the awarding of any financial assistance for the development 
by the department.  The owner of the development shall submit to the 
department copies of the most recent third-party physical needs 
assessment conducted on the development, any response by the owner 
to the assessment, any repairs made in response to the assessment, 
and information on any necessary changes to the required reserve 
based on the assessment".
	(3)  In SECTION 1 of the bill, in added Section 2306.186, 
Government Code (page 2, lines 35-39), strike Subsection (h) and 
substitute the following:
	(h)  The appropriate level of funding for a reserve account 
is determined by department rule according to the physical needs 
assessment required by Subsection (e).  If the amount in a reserve 
account is considered to be inadequate by the department based on 
the physical needs assessment, the department shall reassess and, 
if appropriate, revise the deposit amount required of the owner and 
the level of department assistance provided for the development.  
The reserve must be continually maintained as indicated by the 
condition of the development according to the physical needs 
assessment of the development.
	(4)  In SECTION 1 of the bill, in added Section 2306.186, 
Government Code (page 2, lines 51-57), strike Subsection (k) and 
reletter subsequent subsections accordingly.
	(5)  In SECTION 1 of the bill, in added Section 2306.186(m), 
Government Code (page 3, lines 25-26), strike "conduct the 
inspection and make the identified repairs as required by 
Subsection (e)" and substitute "contract for the third-party 
physical needs assessment and make the identified repairs as 
required by this section".