78R1728 QS-D

By:  Callegari                                                    H.B. No. 428



A BILL TO BE ENTITLED

AN ACT

relating to the system by which an application for a low income 
housing tax credit is scored.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2306.6710(b), Government Code, is 
amended to read as follows:
	(b)  If an application satisfies the threshold criteria, the 
department shall score and rank the application using a point 
system based on criteria that are adapted to regional market 
conditions and adopted by the department, including criteria:
		(1)  regarding:                                                               
			(A)  the income levels of tenants of the 
development;                      
			(B)  the rent levels of the units;                                           
			(C)  the period of guaranteed affordability for 
low income tenants;        
			(D)  the cost by square foot of the development;                             
			(E)  the size, quality, and amenities of the 
units;                        
			(F)  the services to be provided to tenants of the 
development; and 
			(G)  the commitment of development funding by 
local political subdivisions that enables additional units for 
individuals and families of very low income;  and
			[(H) the level of community support for the 
application, evaluated on the basis of written statements of 
support from local and state elected officials representing 
constituents in areas that include the location of the development; 
and]
		(2)  imposing penalties on applicants or affiliates who 
have requested extensions of department deadlines relating to 
developments supported by housing tax credit allocations made in 
the application round preceding the current round.
	SECTION 2.  Sections 2306.6718(b) and (d), Government Code, 
are repealed.    
	SECTION 3.  The change in law made by this Act applies only 
to an application for a low income housing tax credit filed on or 
after the effective date of this Act.  An application filed before 
the effective date of this Act is governed by the law in effect when 
the application was filed, and the former law is continued in effect 
for that purpose.
	SECTION 4.  This Act takes effect September 1, 2003.