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	Section 5 is amended and replaced in its entirety to read:                   
	SECTION 5.  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              
			(J) whether, at the time the complete application 
is submitted or at any time within the two-year period preceding the 
date of submission, the proposed development site is located in an 
area declared to be a disaster under Section 418.014 due to 
widespread or severe flooding; 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.