SRC-JLB C.S.H.B. 2308 78(R)BILL ANALYSIS Senate Research CenterC.S.H.B. 2308 78R16916 QS-DBy: Jones, Jesse (West, Royce) Intergovernmental Relations 5/21/2003 Committee Report (Substituted) DIGEST AND PURPOSE Currently, there are no restrictions preventing multiple affordable housing developments within the same neighborhood. C.S.H.B. 2308 authorizes the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to allocate housing tax credits to more than one development in a single community in the same calendar year only if the developments are or will be located more than one linear mile apart. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2306.6703, Government Code, as follows: Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. (a) Provides that an application is ineligible for consideration under the low income housing tax credit program if certain criteria exists. (b) Provides that Subsection (a) (3) does not apply to a development that is using certain funds or that is located outside of a metropolitan statistical area. SECTION 2. Amends Section 2306.6711, Government Code, by adding Subsection (f), to authorize the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to allocate housing tax credits to more than one development in a single community, as defined by TDHCA rule, in the same calendar year only if the developments are or will be located more than one linear mile apart. SECTION 3. Amends Section 2306.6725(b), Government Code, to require TDHCA to provide appropriate incentives as determined through the qualified allocation plan to reward applicants who agree to perform certain acts, including to locate the development in a census tract in which there are no other existing developments supported by housing tax credits. SECTION 4. Makes application of this Act prospective. SECTION 5. Effective date: September 1, 2003.