By: West S.B. No. 1592
(In the Senate - Filed March 14, 2003; March 20, 2003, read
first time and referred to Committee on Finance; May 7, 2003,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 8, Nays 0, 2 present not voting; May 7, 2003,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1592 By: Zaffirini
A BILL TO BE ENTITLED
AN ACT
relating to applications for and allocations of reservations of the
state ceiling among issuers of qualified residential rental project
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.0231, Government Code, is amended
by amending Subsection (d) and adding Subsection (d-1) to read as
follows:
(d) Except as provided by Subsection (d-1), before [Before]
June 1, the board shall apportion the amount of the state ceiling
set aside under Subsection (a)(2) among the uniform state service
regions according to the percentage of the state's population that
resides in each of those regions.
(d-1) Before June 1, the board shall apportion the amount of
the state ceiling set aside under Subsection (a)(2) only among
uniform state service regions with respect to which an issuer has
submitted an application for a reservation of the state ceiling on
or before March 1.
SECTION 2. Section 1372.0321, Government Code, as added by
Chapters 1367 and 1420, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted and amended to read as follows:
Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS
OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
reservations to issuers of qualified residential rental project
issues, the board shall[:
[(1)] give first priority to:
(1) [(A)] projects in which:
(A) 50 [100] percent of the residential units
in the project [projects] are:
(i) under the restriction that the maximum
allowable rents are an amount equal to 30 percent of 50 percent of
the area median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
(ii) reserved for families and individuals
earning not more than 50 percent of the area median income; and
(B) the remaining 50 percent of the residential
units in the project are:
(i) under the restriction that the maximum
allowable rents are an amount equal to 30 percent of 60 percent of
the area median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
(ii) reserved for families and individuals
earning not more than 60 percent of the area median income;
(2) projects in which:
(A) 15 percent of the residential units in the
project are:
(i) under the restriction that the maximum
allowable rents are an amount equal to 30 percent of 30 percent of
the area median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
(ii) reserved for families and individuals
earning not more than 30 percent of the area median income; and
(B) the remaining 85 percent of the residential
units in the project are:
(i) under the restriction that the maximum
allowable rents are an amount equal to 30 percent of 60 percent of
the area median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
(ii) reserved for families and individuals
earning not more than 60 percent of the area median income;
(3) projects:
(A) in which 100 percent of the residential units
in the project are:
(i) under the restriction that the maximum
allowable rents are an amount equal to 30 percent of 60 percent of
the area median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
(ii) reserved for families and individuals
earning not more than 60 percent of the area median income; and
(B) which are located in a census tract in which
the median income, based on the most recent information published
by the United States Bureau of the Census, is higher than the median
income for the county, metropolitan statistical area, or primary
metropolitan statistical area in which the census tract is located
as established by the United States Department of Housing and Urban
Development; or
(4) [(B)] on or after June 1, projects that are
located in counties, metropolitan statistical areas, or primary
metropolitan statistical areas with area median family incomes at
or below the statewide median family income established by the
United States Department of Housing and Urban Development.
(a-1) In granting reservations to issuers of qualified
residential rental project issues, the board shall[; (2)] give
second priority to projects in which 100 percent of the residential
units in the project [projects] are under the restriction that the
maximum allowable rents are an amount equal to 30 percent of 60
percent of the area median family income minus an allowance for
utility costs authorized under the federal low-income housing tax
credit program.
(a-2) In granting reservations to issuers of qualified
residential rental project issues, the board shall[; and (3)] give
third priority to any other qualified residential rental project.
(b) The board may not reserve a portion of the state ceiling
for a first or second priority project described by this section
[Subsection (a)] unless the board receives evidence that an
application has been filed with the Texas Department of Housing and
Community Affairs for the low-income housing tax credit that is
available for multifamily transactions that are at least 51 percent
financed by tax-exempt private activity bonds.
SECTION 3. Subsection (a), Section 1372.006, Government
Code, is amended to read as follows:
(a) An application for a reservation under Subchapter B or a
carryforward designation under Subchapter C must be accompanied by
a nonrefundable fee in the amount of $500, except that for issuers
of qualified residential rental project bonds the application must
be accompanied by a nonrefundable fee of $5,000, $1,000 of which the
board shall retain to offset the costs of the private activity bond
allocation program and the administration of that program and
$4,000 of which the board shall transfer through an interagency
agreement to the Texas Department of Housing and Community Affairs
for use in the affordable housing research and information program
as provided by Section 2306.259, Government Code.
SECTION 4. Subchapter K, Chapter 2306, Government Code, is
amended by adding Section 2306.259 to read as follows:
Sec. 2306.259. AFFORDABLE HOUSING RESEARCH AND INFORMATION
PROGRAM. With money available under Section 1372.006(a), the
department shall establish an affordable housing research and
information program in which the department shall contract for:
(1) periodic market studies to determine the need for
housing for families of extremely low, very low, and low income in
census tracts throughout the state;
(2) research from qualified professionals to
determine the effect of affordable housing developments on property
values, social conditions, and quality of life in surrounding
neighborhoods;
(3) independent research in affordable housing design
and development approaches that enhance community acceptance of
affordable housing and improve the quality of life for the
residents of the housing; and
(4) public education and outreach efforts to assist
the public in understanding the nature and purpose of affordable
housing and the process for public participation in the
administration of affordable housing programs.
SECTION 5. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to an
application for an amount of the state ceiling set aside for issuers
of qualified residential rental project bonds in a year beginning
on or after January 1, 2004. An application for an amount of the
state ceiling set aside for issuers of qualified residential rental
project bonds 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.
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