78R13759 E


By:  Jones of Dallas                                              H.B. No. 2308

Substitute the following for H.B. No. 2308:                                   

By:  Talton                                                   C.S.H.B. No. 2308



A BILL TO BE ENTITLED

AN ACT

relating to ineligibility for participation in the low income 
housing tax credit program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter DD, Chapter 2306, Government Code, is 
amended by adding Section 2306.67035 to read as follows:
	Sec. 2306.67035.  REGULATION OF LOCATION OF CERTAIN 
DEVELOPMENTS.  (a)  The department by rule shall develop 
appropriate guidelines under the low income housing tax credit 
program in which the applicant proposes to construct a new 
development that is located one linear mile or less from a 
development that:
		(1)  serves the same type of household as the new 
development, regardless of whether the developments serve 
families, elderly individuals, or another type of household;
		(2)  has received an allocation of housing tax credits 
for new construction at any time during the three-year period 
preceding the date the application round begins; and
		(3)  has not been withdrawn or terminated from the low 
income housing tax credit program.
	(b)  A rule adopted by the department under Subsection (a) 
must exempt a development:
		(1)  that is using:                                                    
			(A)  federal HOPE VI funds received through the 
United States Department of Housing and Urban Development; or
			(B)  locally approved funds received from a public 
improvement district or a tax increment financing district; or
		(2)  that is located outside of a metropolitan 
statistical area.     
	SECTION 2.  This Act takes effect September 1, 2003.