SRC-JLB S.B. 1002 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1002
78R5623 QS-DBy: West, Royce
Intergovernmental Relations
4/24/2003
As Filed


DIGEST AND PURPOSE 

Currently, no restriction exists to prevent multiple affordable housing
developments within the same neighborhood.  As proposed, S.B. 1002 sets
forth certain restrictions on applications for low-income housing tax
credits for the purpose of building multi-family affordable housing. 

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)  Created from
existing text.   Provides that an application is ineligible for
consideration under the low income housing tax credit program if, in
addition to other provisions, the applicant proposes to replace in less
than 15 years any private activity bond financing of the development
described by the application, unless the applicant proposes to maintain
for a period of 30 years or more 100 percent of the development units
supported by housing tax credits as rent-restricted and exclusively for
occupancy by individuals and families earning not more than 50 percent of
the area median income, adjusted for family size, and the applicant
proposes to construct a new development that is located one linear mile or
less from a development that meets certain criteria. 

(b)  Provides that Subsection (a)(3) does not apply to a development under
certain conditions. 
  
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, in addition to other
provisions, 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.