79R13325 MFC-D


By:  Leibowitz                                                    H.B. No. 1389

Substitute the following for H.B. No. 1389:                                   

By:  Elkins                                                   C.S.H.B. No. 1389



A BILL TO BE ENTITLED

AN ACT

relating to the provision of free notary public service by 
applicants for an allocation of low income housing tax credits.
	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 that:
		(1)  prioritizes in descending order criteria 
regarding:                    
			(A)  financial feasibility of the development 
based on the supporting financial data required in the application 
that will include a project underwriting pro forma from the 
permanent or construction lender;
			(B)  quantifiable community participation with 
respect to the development, evaluated on the basis of written 
statements from any neighborhood organizations on record with the 
state or county in which the development is to be located and whose 
boundaries contain the proposed development site;
			(C)  the income levels of tenants of the 
development;                      
			(D)  the size and quality of the units;                                      
			(E)  the commitment of development funding by 
local political subdivisions;
			(F)  the level of community support for the 
application, evaluated on the basis of written statements from 
state elected officials;
			(G)  the rent levels of the units;                                           
			(H)  the cost of the development by square foot; 
and                       
			(I)  the services to be provided to tenants of the 
development; [and]
		(2)  uses criteria 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 or a developer or principal of the applicant that has been 
removed by the lender, equity provider, or limited partners for its 
failure to perform its obligations under the loan documents or 
limited partnership agreement; and
		(3)  encourages applicants to provide free notary 
public service to the residents of the developments for which the 
allocation of housing tax credits is requested.
	SECTION 2.  The changes in law made by this Act relating to 
the evaluation of applications for financial assistance 
administered by the Texas Department of Housing and Community 
Affairs apply only to an application submitted on or after the 
effective date of this Act.  An application submitted before the 
effective date of this Act is governed by the law in effect when the 
application was submitted, and the former law is continued in 
effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.