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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of the low income housing tax credit |
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program by the Texas Department of Housing and Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6703, Government Code, is amended |
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to read as follows: |
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Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. (a) An |
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application is ineligible for consideration under the low income |
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housing tax credit program if: |
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(1) at the time of application or at any time during |
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the two-year period preceding the date the application round |
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begins, the applicant or a related party is or has been: |
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(A) a member of the board; or |
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(B) the director, a deputy director, the director |
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of housing programs, the director of compliance, the director of |
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underwriting, or the low income housing tax credit program manager |
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employed by the department; |
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(2) the applicant proposes to replace in less than 15 |
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years any private activity bond financing of the development |
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described by the application, unless: |
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(A) the applicant proposes to maintain for a |
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period of 30 years or more 100 percent of the development units |
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supported by housing tax credits as rent-restricted and exclusively |
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for occupancy by individuals and families earning not more than 50 |
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percent of the area median income, adjusted for family size; and |
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(B) at least one-third of all the units in the |
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development are public housing units or Section 8 project-based |
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units; |
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(3) the applicant proposes to construct a new |
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development that is located two [one] linear miles [mile] or less |
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from a development that: |
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(A) serves the same type of household as the new |
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development, regardless of whether the developments serve |
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families, elderly individuals, or another type of household; |
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(B) has received an allocation of housing tax |
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credits for new construction at any time during the three-year |
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period preceding the date the application round begins; and |
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(C) has not been withdrawn or terminated from the |
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low income housing tax credit program; or |
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(4) the development is located in a municipality or, |
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if located outside a municipality, a county that has more than twice |
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the state average of units per capita supported by housing tax |
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credits or private activity bonds, unless the applicant: |
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(A) has obtained prior approval of the |
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development from the governing body of the appropriate municipality |
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or county containing the development; and |
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(B) has included in the application a written |
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statement of support from that governing body referencing this |
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section and authorizing an allocation of housing tax credits for |
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the development. |
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(b) Subsection (a)(3) does not apply to a development: |
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(1) that is using: |
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(A) federal HOPE VI funds received through the |
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United States Department of Housing and Urban Development; |
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(B) locally approved funds received from a public |
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improvement district or a tax increment financing district; |
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(C) funds provided to the state under the |
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Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
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Section 12701 et seq.); or |
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(D) funds provided to the state and participating |
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jurisdictions under the Housing and Community Development Act of |
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1974 (42 U.S.C. Section 5301 et seq.); |
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(2) that is located in a county with a population of |
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less than one million; |
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(3) that is located outside of a metropolitan |
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statistical area; or |
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(4) that a local government where the project is to be |
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located has by vote specifically allowed the construction of a new |
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development located within two [one] linear miles [mile] or less |
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from a development under Subsection (a). |
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SECTION 2. Section 2306.6711(f), Government Code, is |
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amended to read as follows: |
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(f) The board may allocate housing tax credits to more than |
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one development in a single community, as defined by department |
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rule, in the same calendar year only if the developments are or will |
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be located more than two [one] linear miles [mile] apart. This |
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subsection applies only to communities contained within counties |
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with populations exceeding one million. |
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SECTION 3. The changes in law made by this Act apply only to |
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an application for low income housing tax credits that is submitted |
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to the 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 that is submitted during an application cycle |
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that began before the effective date of this Act is governed by the |
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law in effect at the time the application cycle began, and the |
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former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |