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78R7296 QS-D
By: Callegari H.B. No. 2473
A BILL TO BE ENTITLED
AN ACT
relating to certain housing programs administered by the Texas
Department of Housing and Community Affairs and the role of the
Texas Department of Housing and Community Affairs in the allocation
of private activity bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.0231(b), Government Code, is
amended to read as follows:
(b) With respect to the amount of the state ceiling set
aside under Subsection (a)(1), the board shall delegate direct
allocation authority to the Texas Department of Housing and
Community Affairs. Allocations made by the department under this
subsection are subject to review and approval by the board. The
department shall allocate the amount of state ceiling set aside
under Subsection (a)(1) in the manner provided by Section 2306.359
[grant reservations:
[(1) in the order determined by the board by lot; and
[(2) in a manner that ensures that:
[(A) the set-aside amount is used for proposed
projects that are located throughout the state; and
[(B) not more than 50 percent of the set-aside
amount is used for proposed projects that are located in qualified
census tracts as defined by Section 143(j), Internal Revenue Code
of 1986].
SECTION 2. Section 2306.0661, Government Code, is amended
by adding Subsection (f) to read as follows:
(f) The board shall adopt rules governing the topics that
may be considered at a public hearing. The rules must require the
department to consider the following topics in relation to a
proposed housing development:
(1) the developer's market study;
(2) the location;
(3) the compliance history of the developer;
(4) the anticipated impact on local school districts;
(5) the financial feasibility;
(6) the appropriateness of the development's size and
configuration in relation to the housing needs of the community in
which the development is located;
(7) zoning and other land use considerations; and
(8) any other topics that the board by rule determines
to be appropriate.
SECTION 3. Subchapter D, Chapter 2306, Government Code, is
amended by adding Section 2306.082 to read as follows:
Sec. 2306.082. PUBLIC INFORMATION CAMPAIGN. (a) The
department may develop and administer a public information campaign
relating to the public perception of housing developments in this
state.
(b) The department may not use money appropriated to the
department for a campaign under this section.
(c) The department may solicit and accept gifts, grants, and
other donations to develop and administer a campaign under this
section.
SECTION 4. Subchapter F, Chapter 2306, Government Code, is
amended by adding Sections 2306.1114 and 2306.1115 to read as
follows:
Sec. 2306.1114. NOTICE OF RECEIPT OF APPLICATION. (a) Not
later than two weeks after the date an application for housing funds
has been filed, the department shall provide written notice of the
filing of the application to the following persons:
(1) the United States representative who represents
the community containing the development described in the
application;
(2) members of the legislature who represent the
community containing the development described in the application;
(3) the presiding officer of the governing body of the
political subdivision containing the development described in the
application;
(4) the member of the governing body of a political
subdivision who represents the area containing the development
described in the application;
(5) the presiding officer of the board of trustees of
the school district containing the development described in the
application; and
(6) the president of the neighborhood association, if
any, of the neighborhood containing the development described in
the application.
(b) The notice provided under Subsection (a) must include
the following information:
(1) the relevant dates affecting the application,
including the date:
(A) that the application was filed;
(B) that a hearing on the application will be
held; and
(C) by which a decision on the application will
be made;
(2) a summary of relevant facts associated with the
development; and
(3) a summary of any public benefits provided as a
result of the development, including rent subsidies and tenant
services.
Sec. 2306.1115. MARKET STUDY: ADDITIONAL REQUIREMENTS. A
market study required by the department as part of an application
for housing funds under this chapter must include an analysis of:
(1) the market area, defined as the attendance zone of
the nearest public high school;
(2) the ability of nearby public schools to absorb the
additional students brought to the market area by the proposed
housing development; and
(3) the need for the proposed housing development
based on the existence of any noncapacity housing developments for
individuals and families of low income in the market area in which
the proposed development would be located.
SECTION 5. Subchapter P, Chapter 2306, Government Code, is
amended by adding Section 2306.359 to read as follows:
Sec. 2306.359. ISSUANCE OF PRIVATE ACTIVITY BONDS. (a) In
evaluating an application for an issuance of private activity
bonds, 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
(2) imposing penalties on applicants who have
requested extensions of department deadlines relating to
developments supported by an issuance of private activity bonds
made in the application round preceding the current round.
(b) The department shall make available on its website
details of the scoring system used by the department to score
applications.
(c) The department shall underwrite the applications ranked
under Subsection (a) beginning with the applications with the
highest scores in each region described by Section 2306.111(d).
Based on application rankings, the department shall continue to
underwrite applications until the department has processed enough
applications satisfying the department's underwriting criteria to
enable the issuance of all available private activity bonds
according to regional allocation goals. To enable the board to
establish an applications waiting list, the department shall
underwrite as many additional applications as the board considers
necessary.
(d) In adopting criteria for scoring and underwriting
applications under this section, the department shall attach the
most weight to criteria that will:
(1) result in an issuance of private activity bonds
for developments serving the lowest income tenants; and
(2) produce the greatest number of high quality units
committed to remaining affordable to qualified tenants for extended
periods.
SECTION 6. (a) This Act takes effect September 1, 2003.
(b) The changes in law made by this Act relating to
increased public participation in decisions regarding applications
for housing funds apply only to an application for housing funds
submitted to the Texas Department of Housing and Community Affairs
during an application cycle that begins on or after the effective
date of this Act. An application submitted during an application
cycle that began before the effective date of this Act is governed
by the law in effect on the date the application cycle began, and
the former law is continued in effect for that purpose.
(c) The change in law made by Section 1372.0231, Government
Code, as amended by this Act, applies only to the allocation of the
amount of the state ceiling set aside for the Texas Department of
Housing and Community Affairs under that section in a year
beginning on or after January 1, 2004. The allocation of the amount
of the state ceiling set aside for the Texas Department of Housing
and Community Affairs under that section in 2003 is governed by the
law in effect immediately before the effective date of this Act, and
the former law is continued in effect for that purpose.