By: West S.B. No. 935
A BILL TO BE ENTITLED
AN ACT
relating to the evaluation of applications for certain financial
assistance administered by the Texas Department of Housing and
Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 2306.359, Government
Code, is amended to read as follows:
(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 adopted by the
department, including criteria:
(1) regarding:
(A) the income levels of tenants of the
development, consistent with the funding priorities provided by
Section 1372.0321;
(B) the rent levels of the units;
(C) the level of community support for the
application, as expressed through official resolutions from the
governing bodies of the political subdivisions containing the
development;
(D) the period of guaranteed affordability for
low income tenants;
(E) the cost per unit of the development;
(F) the size, quality, and amenities of the
units;
(G) the services to be provided to tenants of the
development;
(H) the commitment of development funding by
local political subdivisions that enables additional units for
individuals and families of very low income; [and]
(I) the degree to which the development:
(i) furthers the objective of fair housing
as required by state and federal law; and
(ii) creates variety in housing choices by
preventing the concentration of low-income housing in any one
neighborhood or community;
(J) for a development that is not occupied
exclusively by elderly individuals or by individuals with special
needs, the quality level of the elementary schools serving the
development, as measured by the performance rating of a school
campus under Chapter 39, Education Code, and by whether the school
is making adequate yearly progress and meeting other standards
prescribed by the federal No Child Left Behind Act of 2001 (Pub. L.
No. 107-110); and
(K) other criteria as developed by the board; 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.
SECTION 2. Subsection (b), Section 2306.6710, 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) the degree to which the development:
(i) furthers the objective of fair housing
as required by state and federal law; and
(ii) creates variety in housing choices by
preventing the concentration of low-income housing in any one
neighborhood or community [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 level of community support for the
application, as expressed through official resolutions from the
governing bodies of the political subdivisions containing the
development;
(E) the size and quality of the units;
(F) for a development that is not occupied
exclusively by elderly individuals or by individuals with special
needs, the quality level of the elementary schools serving the
development, as measured by the performance rating of a school
campus under Chapter 39, Education Code, and by whether the school
is making adequate yearly progress and meeting other standards
prescribed by the federal No Child Left Behind Act of 2001 (Pub. L.
No. 107-110);
(G) [(E)] the commitment of development funding
by local political subdivisions;
(H) [(F)] the level of community support for the
application, as evaluated on the basis of written statements from
state elected officials;
(I) [(G)] the rent levels of the units;
(J) [(H)] the cost of the development by square
foot; and
(K) [(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.
SECTION 3. Subsection (a), Section 2306.6725, Government
Code, is amended to read as follows:
(a) In allocating low income housing tax credits, the
department shall score each application using a point system based
on criteria adopted by the department that are consistent with the
department's housing goals, including criteria addressing the
ability of the proposed project to:
(1) provide quality social support services to
residents;
(2) demonstrate community and neighborhood support,
as expressed through official resolutions from the governing bodies
of the political subdivisions containing the development and as
evaluated on the basis of written statements from state elected
officials [defined by the qualified allocation plan];
(3) consistent with sound underwriting practices and
when economically feasible, serve individuals and families of
extremely low income by leveraging private and state and federal
resources, including federal HOPE VI grants received through the
United States Department of Housing and Urban Development;
(4) serve traditionally underserved areas;
(5) remain affordable to qualified tenants for an
extended, economically feasible period; [and]
(6) comply with the accessibility standards that are
required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
Section 794), and specified under 24 C.F.R. Part 8, Subpart C;
(7) further the objective of fair housing as required
by state and federal law and create variety in housing choices by
preventing the concentration of low-income housing in any one
neighborhood or community; and
(8) for a development that is not occupied exclusively
by elderly individuals or by individuals with special needs,
provide a high level of quality of elementary schools serving the
development, as measured by the performance rating of a school
campus under Chapter 39, Education Code, and by whether the school
is making adequate yearly progress and meeting other standards
prescribed by the federal No Child Left Behind Act of 2001 (Pub. L.
No. 107-110).
SECTION 4. 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 5. This Act takes effect September 1, 2005.