78R8562 QS-D

By:  Paxton                                                       H.B. No. 2566



A BILL TO BE ENTITLED

AN ACT

relating to community evaluation of applications for low income 
housing tax credits.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2306.6703, Government Code, is amended 
to read as follows:
	Sec. 2306.6703.  INELIGIBILITY FOR CONSIDERATION.  An 
application is ineligible for consideration under the low income 
housing tax credit program if:
		(1)  at the time of application or at any time during 
the two-year period preceding the date the application round 
begins, the applicant or a related party is or has been:
			(A)  a member of the board; or                                               
			(B)  the director, a deputy director, the director 
of housing programs, the director of compliance, the director of 
underwriting, or the low income housing tax credit program manager 
employed by the department; [or]
		(2)  the applicant proposes to replace in less than 15 
years any private activity bond financing of the development 
described by the application, unless:
			(A)  the applicant proposes to maintain for a 
period of 30 years or more 100 percent of the development units 
supported by low income 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
			(B)  at least one-third of all the units in the 
development are public housing units or Section 8 project-based 
units; or
		(3)  the development is located in a municipality or, 
if located outside a municipality, a county that has more than twice 
the state average of units per capita supported by housing tax 
credits or private activity bonds, unless the applicant:
			(A)  has obtained prior approval of the 
development from the governing body of the appropriate municipality 
or county containing the development; and
			(B)  has included in the application a written 
statement of support from that governing body referencing this 
section and authorizing an allocation of housing tax credits for 
the development.
	SECTION 2.  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;            
			(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, and the 
level of community opposition to, the application, as 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 3.  Section 2306.6718(a), Government Code, is 
amended to read as follows:
	(a)  The department shall provide written notice of the 
filing of an application to the following elected officials:
		(1)  members of the legislature who represent the 
community containing the development described in the application; 
and
		(2)  the chief executive officer and the governing body 
of the political subdivision containing the development described 
in the application.
	SECTION 4.  This Act applies only to an application for a low 
income housing tax credit allocation submitted to the Texas 
Department of Housing and Community Affairs on or after the 
effective date of this Act.  An application for an allocation 
submitted before the effective date of this Act is governed by the 
law in effect on the date the application was submitted, and the 
former law is continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2003.