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A BILL TO BE ENTITLED
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AN ACT
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relating to the participation by certain state elected officials in |
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the process for evaluating an application for a low income housing |
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tax credit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6710(b), Government Code, is |
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amended to read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of written |
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statements from any neighborhood organizations on record with the |
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state or county in which the development is to be located and whose |
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boundaries contain the proposed development site; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) the commitment of development funding by |
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local political subdivisions; |
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(F) the level of community support or opposition |
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for the application, evaluated on the basis of written statements |
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from state elected officials; |
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(G) the rent levels of the units; |
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(H) the cost of the development by square foot; |
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and |
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(I) the services to be provided to tenants of the |
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development; and |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement. |
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SECTION 2. Sections 2306.6718(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) The department shall provide written notice of the |
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filing of an application to the following elected officials: |
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(1) members of the legislature who represent a house |
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or senate district the boundary of which contains or is located not |
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more than one mile from [the community containing] the development |
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described in the application; and |
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(2) the chief executive officer of the political |
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subdivision containing the development described in the |
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application. |
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(c) A member of the legislature who represents a house or |
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senate district the boundary of which contains or is located not |
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more than one mile from [the community containing] the development |
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may hold a district [community] meeting at which the department |
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shall provide appropriate representation. |
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SECTION 3. The changes in law made by this Act apply only to |
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an application for a low income housing tax credit submitted to the |
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Texas Department of Housing and Community Affairs during an |
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application cycle that begins on or after the effective date of this |
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Act. An application submitted during an application cycle that |
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began before the effective date of this Act is governed by the law |
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in effect on the date the application cycle began, and the former |
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law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |