79R8143 MFC-D

By:  Lucio                                                        S.B. No. 865


A BILL TO BE ENTITLED
AN ACT
relating to the functions of the Texas Department of Housing and Community Affairs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2306.022, Government Code, is amended to read as follows: Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas Department of Housing and Community Affairs is subject to Chapter 325 (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished and this chapter expires September 1, 2013 [2011]. SECTION 2. Section 2306.032(b), Government Code, is amended to read as follows: (b) The board shall keep complete minutes of board meetings. The accounts, minutes, and other records shall be maintained by the department. The board shall post the transcripts of its meetings on the department's website. SECTION 3. Section 2306.111(b), Government Code, is amended to read as follows: (b) The housing finance division shall adopt a goal to apply an aggregate minimum of 30 [25] percent of the division's total housing funds toward housing assistance for individuals and families of extremely low and very low income. SECTION 4. Section 2306.1114(a), Government Code, is amended to read as follows: (a) Not later than the 30th [14th] day after the date an application or a proposed application for housing funds described by Section 2306.111 has been filed, the department shall provide written notice of the filing of the application or proposed 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) any member of the governing body of a political subdivision who represents the area containing the development described in the application; (5) the superintendent and the presiding officer of the board of trustees of the school district containing the development described in the application; and (6) any neighborhood organizations on record with the state or county in which the development described in the application is to be located and whose boundaries contain the proposed development site. SECTION 5. Section 2306.6703(a), as amended by Chapters 330 and 1106, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (a) 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; (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 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 applicant proposes to construct a new development that is located two [one] linear miles [mile] or less from a development that: (A) serves the same type of household as the new development, regardless of whether the developments serve families, elderly individuals, or another type of household; (B) has received an allocation of housing tax credits for new construction at any time during the two-year [three-year] period preceding the date the application round begins; and (C) has not been withdrawn or terminated from the low income housing tax credit program; or (4) 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 6. Section 2306.6714(a), Government Code, is amended to read as follows: (a) The department shall set aside for at-risk developments not less than 20 [15] percent of the housing tax credits available for allocation in the calendar year. SECTION 7. Section 2306.251, Government Code, is repealed. SECTION 8. This Act takes effect September 1, 2005.