2005S0552-1 03/10/05
By: Lucio S.B. No. 1595
A BILL TO BE ENTITLED
AN ACT
relating to private activity bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (d), Section 1372.006, Government
Code, is amended to read as follows:
(d) Of each fee required by Subsection (b) or (c):
(1) one-third must be submitted not later than the
45th [35th] day after the reservation date for the issue; and
(2) the remainder must be submitted at the time of
closing.
SECTION 2. Section 1372.022, Government Code, is amended to
read as follows:
Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS.
(a) If the state ceiling is computed on the basis of $75 per capita
or a greater amount, before July 1 [August 15] of each year:
(1) 28.0 percent of the state ceiling is available
exclusively for reservations by issuers of qualified mortgage
bonds;
(2) 8 percent of the state ceiling is available
exclusively for reservations by issuers of state-voted issues;
(3) 2.0 percent of the state ceiling is available
exclusively for reservations by issuers of qualified small issue
bonds and enterprise zone facility bonds;
(4) 22.0 percent of the state ceiling is available
exclusively for reservations by issuers of qualified residential
rental project bonds;
(5) 10.5 percent of the state ceiling is available
exclusively for reservations by issuers of qualified student loan
bonds authorized by Section 53.47, Education Code, that are
nonprofit corporations able to issue a qualified scholarship
funding bond as defined by Section 150(d)(2), Internal Revenue Code
(26 U.S.C. Section 150(d)(2)); and
(6) 29.5 percent of the state ceiling is available
exclusively for reservations by any other issuer of bonds that
require an allocation.
(b) On and after July 1 [August 15] but before July 15
[September 1], that portion of the state ceiling available for
reservations becomes available for all applications for
reservations in the order determined by the board by lot, subject to
Section 1372.0321. On and after July 15 [September 1], that portion
of the state ceiling available for reservations becomes available
to any issuer for any bonds that require an allocation, subject to
the provisions of this subchapter.
SECTION 3. Section 1372.0221, Government Code, is amended
to read as follows:
Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING FOR
PROFESSIONAL EDUCATORS HOME LOAN PROGRAM. Until June 25 [August
1], out of that portion of the state ceiling that is available
exclusively for reservations by issuers of qualified mortgage bonds
under Section 1372.022, $25 million shall be allotted each year and
made available exclusively to the Texas State Affordable Housing
Corporation for the purpose of issuing qualified mortgage bonds in
connection with the professional educators home loan program
established under Section 2306.562.
SECTION 4. Section 1372.0222, Government Code, is amended
to read as follows:
Sec. 1372.0222. DEDICATION OF PORTION OF STATE CEILING FOR
FIRE FIGHTER AND POLICE OFFICER HOME LOAN PROGRAM. Until June 25
[August 1], out of that portion of the state ceiling that is
available exclusively for reservations by issuers of qualified
mortgage bonds under Section 1372.022, $25 million shall be
allotted each year and made available exclusively to the Texas
State Affordable Housing Corporation for the purpose of issuing
qualified mortgage bonds in connection with the fire fighter and
police officer home loan program established under Section
2306.563.
SECTION 5. Subsections (a) and (b), Section 1372.023,
Government Code, are amended to read as follows:
(a) Until July 1 [August 15], of that portion of the state
ceiling that is available exclusively for reservations by issuers
of qualified mortgage bonds, one-third is available exclusively to
the Texas Department of Housing and Community Affairs for the
purpose of issuing qualified mortgage bonds.
(b) Until July 1 [August 15], of that portion of the state
ceiling that is available exclusively for reservations by issuers
of qualified residential rental project bonds, one-fifth is
available exclusively to the Texas Department of Housing and
Community Affairs in the manner described by Section 1372.0231.
SECTION 6. Subsections (a), (b), and (e), Section
1372.0231, Government Code, as amended by Chapter 1329, Acts of the
78th Legislature, Regular Session, 2003, are amended to read as
follows:
(a) Until July 1 [August 15], of that portion of the state
ceiling that is available exclusively for reservations by issuers
of qualified residential rental project bonds:
(1) 20 percent is available exclusively to the Texas
Department of Housing and Community Affairs in the manner described
by Subsection (b);
(2) 70 percent is available exclusively to housing
finance corporations in the manner described by Subsections
(c)-(f); and
(3) 10 percent is available exclusively to the Texas
State Affordable Housing Corporation in the manner described by
Subsection (b-1).
(b) With respect to the amount of the state ceiling set
aside under Subsection (a)(1), after the board's review and
approval, the board shall grant reservations at the direction of
the Texas Department of Housing and Community Affairs in accordance
with Section 1372.0321 and criteria established by rules of that
department. Subsequent allocations the board makes on behalf of
that department are subject to review and approval by the board in
accordance with Section 1231.041. Subject to Sections 1372.0321(a)
and (b), the board shall grant reservations:
(1) in a manner that ensures that:
(A) the set-aside amount is used for proposed
projects that are located throughout the state; and
(B) not more than 50 percent of the set-aside
amount is used for proposed projects that are located in qualified
census tracts as defined by Section 143(j), Internal Revenue Code
of 1986; and
(2) in the order determined by lot, but only for those
reservations granted between July 1 [August 15] and November 30 of
the program year.
(e) Until March 1 [May 15] of each year, for each of the
uniform state service regions containing Austin, Dallas, or
Houston, the board shall reserve $15 million of the state ceiling
set aside for the region under Subsection (d) for the areas in the
region that are located outside of a metropolitan statistical area,
or for any rehabilitation transactions that are located inside or
outside of a metropolitan statistical area.
SECTION 7. Subsection (c), Section 1372.028, Government
Code, is amended to read as follows:
(c) The application must:
(1) be on a form prescribed by the board;
(2) be signed by a member or officer of the issuer; and
(3) state:
(A) the maximum amount of the bonds in the issue
that require an allocation under Section 146, Internal Revenue Code
(26 U.S.C. Section 146);
(B) the project or, for qualified residential
rental project issues, projects, or, with respect to an eligible
facility, a functional description of the project to be financed by
the proceeds, including the identification of the user of the
proceeds or project;
(C) whether the bonds are qualified bonds;
(D) if the bonds are qualified bonds:
(i) the subparagraph of Section 141(e)(1),
Internal Revenue Code (26 U.S.C. Section 141(e)(1)), that applies;
and
(ii) if Section 141(e)(1)(A) of that code
(26 U.S.C. Section 141(e)(1)(A)) applies, the paragraph of Section
142(a) of that code (26 U.S.C. Section 142(a)) that applies;
(E) if the bonds are not qualified bonds:
(i) that Section 141(b)(5), Internal
Revenue Code (26 U.S.C. Section 141(b)(5)), applies; or
(ii) for a transition rule project, the
paragraph of the Tax Reform Act of 1986 that applies;
(F) that bonds are not being issued for the same
stated project for which the issuer has received sufficient
carryforward during a previous year or for which there exists
unexpended proceeds from, including transferred proceeds
representing unexpended proceeds from, one or more prior issues of
bonds issued by the same issuer or based on the issuer's population;
and
(G) other information that the board may require.
SECTION 8. Section 1372.031, Government Code, is amended to
read as follows:
Sec. 1372.031. PRIORITIES FOR RESERVATIONS AMONG CERTAIN
ISSUERS. Subject to Sections 1372.0321, [and] 1372.0231, and
1372.035, if, on or before October 20, more than one issuer in a
category described by Section 1372.022(a)(2), (3), (4), or (6)
applies for a reservation of the state ceiling for the next program
year, the board shall grant reservations in that category in the
order determined by the board by lot.
SECTION 9. Subsection (a-1), Section 1372.0321, Government
Code, as amended by Chapter 330, Acts of the 78th Legislature,
Regular Session, 2003, is amended to read as follows:
(a-1) In granting reservations to issuers of qualified
residential rental project issues, the board shall give second
priority to projects in which at least 80 [100] percent of the
residential units in the project are:
(1) 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
(2) reserved for families and individuals earning not
more than 60 percent of the area median income.
SECTION 10. Section 1372.035, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) For an issuer that receives a carryforward allocation
with respect to an application, upon the earlier of (1) receipt of
notice from the issuer that the application is being withdrawn, or
(2) the expiration of the period specified in Section
1372.042(a-1) for state ceiling designated as carryforward with
respect to an application under Section 1372.061(b), the board
shall immediately grant a reservation to that issuer's next
available application.
SECTION 11. Subsections (a) and (b), Section 1372.036,
Government Code, are amended to read as follows:
(a) If, before June 1, any portion of the state ceiling in a
category described by Section 1372.022(a) from which issuers were
granted reservations becomes available in that category:
(1) those amounts of the state ceiling shall be
aggregated; and
(2) the board shall grant reservations from that
category on and after May 1 [June 1].
(b) Beginning May 1 [June 1], partial reservations may be
offered once to each applicant in each category described by
Section 1372.022(a) until an applicant in the category accepts the
partial reservation or until additional volume is returned in an
amount sufficient to grant a full reservation.
SECTION 12. Subsections (a) and (d), Section 1372.039,
Government Code, are amended to read as follows:
(a) Not later than the 45th [35th] day after an issuer's
reservation date, the issuer shall submit to the board:
(1) a certificate signed by an authorized
representative of the issuer that certifies the principal amount of
the bonds to be issued; and
(2) a list of finance team members and their addresses
and telephone numbers.
(d) If an issuer does not submit the documents during the
period provided by Subsection (a), the issuer may submit the
documents not later than the third day after the end of the 45-day
[35-day] period together with a statement and evidence regarding
extenuating circumstances that prevented a timely filing. The
board shall review the statement and the evidence and may, based on
the statement and evidence, permit the late filing.
SECTION 13. Section 1372.070, Government Code, is amended
to read as follows:
Sec. 1372.070. FORM AND CONTENTS OF APPLICATION FOR
CARRYFORWARD APPLICATION. An application for a carryforward
designation must:
(1) be on a form prescribed by the board;
(2) be signed by a member or officer of the issuer [and
by:
[(A) the governor, if the issuer was created to
act on behalf of this state; or
[(B) the presiding officer or another authorized
official of each political subdivision, if the issuer was created
to act on behalf of one or more political subdivisions of this
state];
(3) state the amount of carryforward sought;
(4) describe the project;
(5) state which priority classification is applicable
to the applicant;
(6) include evidence satisfactory to the board that
that priority classification is correct; and
(7) contain any other information that the board by
rule requires.
SECTION 14. The change in law made by this Act applies only
to an application submitted to a housing finance corporation 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 on the date the application was submitted, and the former law
is continued in effect for that purpose.
SECTION 15. This Act takes effect September 1, 2005.