80R2892 EJI-D

By: Pickett 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 2306.127, 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, at the time of scoring, are located wholly or partly in:

(1) a federally designated urban enterprise community;

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

(3) an economically distressed area or colonia; or

(4) an area declared to be a disaster under Section 418.014 due to widespread or severe flooding.

SECTION 2. 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 application is scored, 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 3. 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 application is scored, 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 4. 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; and

(J) whether, at the time the application is scored, 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.

SECTION 5. 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 6. This Act takes effect September 1, 2007.