80R9554 EJI-D

By: Pickett H.B. No. 684

Substitute the following for H.B. No. 684:

By: Pickett C.S.H.B. No. 684

A BILL TO BE ENTITLED

AN ACT

relating to state assistance for housing developments located in certain disaster areas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2306.0721(c), Government Code, is amended to read as follows:

(c) The plan must include:

(1) an estimate and analysis of the housing needs of the following populations in each uniform state service region:

(A) individuals and families of moderate, low, very low, and extremely low income;

(B) individuals with special needs; [and]

(C) homeless individuals; and

(D) individuals and families who, within the two-year period preceding the date the estimate is made or the analysis is performed, whichever is earlier, reside in an area declared to be a disaster under Section 418.014 due to widespread or severe flooding;

(2) a proposal to use all available housing resources to address the housing needs of the populations described by Subdivision (1) by establishing funding levels for all housing-related programs;

(3) an estimate of the number of federally assisted housing units available for the populations described by Subdivisions (1)(A), (B), and (D) [individuals and families of low and very low income and individuals with special needs] in each uniform state service region;

(4) a description of state programs that govern the use of all available housing resources;

(5) a resource allocation plan that targets all available housing resources to the populations described by Subdivisions (1)(A), (B), and (D) [individuals and families of low and very low income and individuals with special needs] in each uniform state service region;

(6) a description of the department's efforts to monitor and analyze the unused or underused federal resources of other state agencies for housing-related services and services for the populations described by Subdivisions (1)(C) and (D) [homeless individuals] and the department's recommendations to ensure the full use by the state of all available federal resources for those services in each uniform state service region;

(7) strategies to provide housing for the populations described by Subdivisions (1)(B) and (D) [individuals and families with special needs] in each uniform state service region;

(8) a description of the department's efforts to encourage in each uniform state service region the construction of housing units that incorporate energy efficient construction and appliances;

(9) an estimate and analysis of the housing supply in each uniform state service region;

(10) an inventory of all publicly and, where possible, privately funded housing resources, including public housing authorities, housing finance corporations, community housing development organizations, and community action agencies;

(11) strategies for meeting rural housing needs;

(12) a biennial action plan for colonias that:

(A) addresses current policy goals for colonia programs, strategies to meet the policy goals, and the projected outcomes with respect to the policy goals; and

(B) includes information on the demand for contract-for-deed conversions, services from self-help centers, consumer education, and other colonia resident services in counties some part of which is within 150 miles of the international border of this state;

(13) a summary of public comments received at a hearing under this chapter or from another source that concern the demand for colonia resident services described by Subdivision (12); and

(14) any other housing-related information that the state is required to include in the one-year action plan of the consolidated plan submitted annually to the United States Department of Housing and Urban Development.

SECTION 2. Section 2306.127, Government Code, is amended to read as follows:

Sec. 2306.127. PRIORITY FOR CERTAIN COMMUNITIES. In a manner consistent with the regional allocation formula described under Section 2306.111(d), the department shall give priority through its housing program scoring criteria to communities that:

(1) at the time complete applications are submitted under a housing program in relation to those communities, are located wholly or partly in:

(A) [(1)] a federally designated urban enterprise community;

(B) [(2)] an urban enhanced enterprise community; or

(C) [(3)] an economically distressed area or colonia; or

(2) at the time complete applications are submitted under a housing program in relation to those communities or at any time within the two-year period preceding the dates of submission of the applications, are located wholly or partly in an area declared to be a disaster under Section 418.014 due to widespread or severe flooding.

SECTION 3. Section 2306.359(a), 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;

(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) 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

(J) 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 4. Section 2306.565(e), Government Code, is amended to read as follows:

(e) The board of directors of the corporation shall adopt criteria governing the method by which the staff of the corporation scores and ranks each application [applications] for an allocation under this section that is [are] received in response to a request for a proposal [proposals]. The criteria must include:

(1) the cost per unit of the housing development;

(2) the proposed rent for a unit; [and]

(3) the income ranges of individuals and families to be served by the housing development; and

(4) criteria related to 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 housing development site is located in an area declared to be a disaster under Section 418.014 due to widespread or severe flooding.

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) 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;

(B) 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;

(C) [(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;

(D) [(C)] the income levels of tenants of the development;

(E) [(D)] the size and quality of the units;

(F) [(E)] the commitment of development funding by local political subdivisions;

(G) [(F)] the level of community support for the application, evaluated on the basis of written statements from state elected officials;

(H) [(G)] the rent levels of the units;

(I) [(H)] the cost of the development by square foot; and

(J) [(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 6. 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 or the Texas State Affordable Housing Corporation apply only to an application submitted for an application cycle that begins on or after the effective date of this Act. An application submitted for an application cycle that begins 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 7. This Act takes effect September 1, 2007.