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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of private activity bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1372.002, Government Code, is amended by |
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amending Subsection (a) and adding Subsections (c) and (d) to read |
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as follows: |
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(a) For purposes of this chapter, a project is: |
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(1) an eligible facility or an eligible group of |
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facilities that is proposed to be financed, in whole or in part, by |
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an issue of bonds; or |
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(2) in connection with an issue of qualified mortgage |
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bonds or qualified student loan bonds, the providing of financial |
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assistance to qualified mortgagors or students located in all or |
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any part of the jurisdiction of the issuer. |
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(c) For purposes of Subsection (a), a group of eligible |
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facilities includes an application under this chapter that includes |
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both rehabilitation and new construction of qualified residential |
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rental facilities located at multiple sites and with respect to |
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which 51 percent or more of the residential units are located: |
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(1) in a county with a population of less than 75,000; |
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or |
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(2) in a county where the area median income is less |
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than the area median income for the state, provided that the units |
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are located in that portion of the county that is not included in a |
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metropolitan statistical area containing one or more projects that |
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are proposed to be financed, in whole or in part, by an issuance of |
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bonds. |
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(d) For purposes of Subsection (c), in an application for a |
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reservation, the number of sites may be reduced as needed without |
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affecting their status as a project for purposes of the |
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application, provided that the final application for a reservation |
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contains at least two sites. |
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SECTION 2. Section 1372.006(a), Government Code, is amended |
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to read as follows: |
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(a) An application for a reservation under Subchapter B or |
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a carryforward designation under Subchapter C must be accompanied |
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by a nonrefundable fee in the amount of $500, except that for |
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issuers of qualified residential rental project bonds the |
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application must be accompanied by: |
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(1) a nonrefundable fee of $1,000 payable to the board |
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[$5,000, of which the board shall retain $1,000] to offset the costs |
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of the private activity bond allocation program and the |
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administration of that program; and |
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(2) a nonrefundable fee of [which the board shall
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transfer] $4,000 payable [through an interagency agreement] to the |
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Texas Department of Housing and Community Affairs to be used for |
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marketing, research, or educational awareness programs concerning |
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low-income housing in this state [for use in the affordable housing
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research and information program as provided by Section 2306.259]. |
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SECTION 3. Section 1372.022, Government Code, is amended to |
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read as follows: |
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Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS. |
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(a) If the state ceiling is computed on the basis of $75 per capita |
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or a greater amount, before August 1 [15] of each year: |
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(1) 28.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified mortgage |
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bonds; |
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(2) 8 percent of the state ceiling is available |
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exclusively for reservations by issuers of state-voted issues; |
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(3) 2.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified small issue |
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bonds and enterprise zone facility bonds; |
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(4) 22.0 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified residential |
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rental project bonds; |
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(5) 10.5 percent of the state ceiling is available |
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exclusively for reservations by issuers of qualified student loan |
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bonds authorized by Section 53.47, Education Code, that are |
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nonprofit corporations able to issue a qualified scholarship |
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funding bond as defined by Section 150(d)(2), Internal Revenue Code |
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(26 U.S.C. Section 150(d)(2)); and |
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(6) 29.5 percent of the state ceiling is available |
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exclusively for reservations by any other issuer of bonds that |
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require an allocation. |
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(b) On and after August 1 [15] but before September 1, that |
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portion of the state ceiling available for reservations, except as |
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provided by Subsection (c), becomes available exclusively for [all
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applications for] reservations by issuers of qualified residential |
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rental project bonds in the order determined by the board by lot, |
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subject to Section 1372.0321. On and after September 1, that |
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portion of the state ceiling available for reservations becomes |
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available to any issuer for any bonds that require an allocation, |
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subject to the provisions of this subchapter. |
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(c) Any reservations granted to qualified residential |
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rental project bond issuers under Subsection (b) on or after August |
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1 and before September 1 must be made in addition to any other |
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specific set-aside otherwise indicated in this chapter. |
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SECTION 4. Section 1372.023, Government Code, is amended to |
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read as follows: |
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Sec. 1372.023. DEDICATION OF PORTIONS OF STATE CEILING TO |
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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a) Until |
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August 1 [15], of that portion of the state ceiling that is |
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available exclusively for reservations by issuers of qualified |
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mortgage bonds, one-third is available exclusively to the Texas |
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Department of Housing and Community Affairs for the purpose of |
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issuing qualified mortgage bonds. |
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(b) Until August 1 [15], of that portion of the state |
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ceiling that is available exclusively for reservations by issuers |
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of qualified residential rental project bonds, one-fifth is |
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available exclusively to the Texas Department of Housing and |
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Community Affairs in the manner described by Section 1372.0231. |
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(c) Before August 1, the [The] Texas Department of Housing |
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and Community Affairs may not reserve a portion of the state ceiling |
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that is available exclusively for reservations by issuers of |
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qualified residential rental project bonds other than the portion |
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dedicated to the department under Subsection (b) and Section |
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1372.0231(a). |
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SECTION 5. Sections 1372.0231(a), (e), (f), and (i), |
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Government Code, are amended to read as follows: |
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(a) Until August 1 [15], of that portion of the state |
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ceiling that is available exclusively for reservations by issuers |
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of qualified residential rental project bonds: |
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(1) 20 percent is available exclusively to the Texas |
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Department of Housing and Community Affairs in the manner described |
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by Subsection (b); |
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(2) 70 percent is available exclusively to housing |
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finance corporations in the manner described by Subsections |
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(c)-(f); and |
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(3) 10 percent is available exclusively to the Texas |
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State Affordable Housing Corporation in the manner described by |
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Subsection (b-1). |
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(e) Until March 1 [May 15] of each year, for each of the |
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uniform state service regions containing [Austin,] Dallas[,] or |
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Houston, the board shall reserve $15 million of the state ceiling |
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set aside for the region under Subsection (d) for the areas in the |
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region that are located outside of a metropolitan statistical area. |
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(f) In each area described by Subsection (d) [or (e)], the |
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board shall grant reservations based on the priority levels of |
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proposed projects as described by Section 1372.0321. |
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(i) Before June 1, the board shall apportion the amount of |
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the state ceiling set aside under Subsection (a)(2) only among |
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uniform state service regions with respect to which an issuer has |
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submitted an application for a reservation of the state ceiling on |
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or before February [March] 1. |
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SECTION 6. Section 1372.0231(b), Government Code, as |
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amended by Section 4, Chapter 1329, Acts of the 78th Legislature, |
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Regular Session, 2003, is amended to read as follows: |
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(b) With respect to the amount of the state ceiling set |
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aside under Subsection (a)(1), after the board's review and |
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approval, the board shall grant reservations at the direction of |
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the Texas Department of Housing and Community Affairs in accordance |
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with Section 1372.0321 and criteria established by rules of that |
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department. Subsequent allocations the board makes on behalf of |
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that department are subject to review and approval by the board in |
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accordance with Section 1231.041. Subject to Sections 1372.0321(a) |
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and (b), the board shall grant reservations: |
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(1) in a manner that ensures that: |
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(A) the set-aside amount is used for proposed |
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projects that are located throughout the state; and |
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(B) not more than 50 percent of the set-aside |
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amount is used for proposed projects that are located in qualified |
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census tracts as defined by Section 143(j), Internal Revenue Code |
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of 1986; and |
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(2) in the order determined by lot, but only for those |
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reservations granted between August 1 [15] and November 30 of the |
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program year. |
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SECTION 7. Section 1372.026(a), Government Code, is amended |
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to read as follows: |
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(a) The maximum amount of the state ceiling that may be |
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reserved before August 1 [15] by a housing finance corporation for |
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the issuance of qualified mortgage bonds may not exceed the amount |
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computed as follows: |
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(1) if the local population of the housing finance |
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corporation is 300,000 or more, $22.5 million plus the product of |
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the amount by which the local population exceeds 300,000 multiplied |
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by $11.25; |
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(2) if the local population of the housing finance |
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corporation is 200,000 or more but less than 300,000, $20 million |
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plus the product of the amount by which the local population exceeds |
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200,000 multiplied by $22.5; |
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(3) if the local population of the housing finance |
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corporation is 100,000 or more but less than 200,000, $15 million |
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plus the product of the amount by which the local population exceeds |
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100,000 multiplied by $50; or |
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(4) if the local population of the housing finance |
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corporation is less than 100,000, the product of the local |
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population multiplied by $150. |
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SECTION 8. Section 1372.0321, Government Code, is amended |
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by amending Subsections (a) and (b) and adding Subsections (c) and |
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(d) to read as follows: |
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(a) In granting reservations to issuers of qualified |
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residential rental project issues, the board shall give [first] |
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priority as follows [to]: |
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(1) first priority to: |
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(A) any project that qualifies under Section |
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1372.002(c); |
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(B) any single site qualified residential rental |
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project that is located in a county with a population of less than |
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75,000; or |
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(C) any project that is located in a county where |
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the area median income is less than the area median income for the |
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state and that is not located in a metropolitan statistical area or |
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primary metropolitan statistical area; |
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(2) second priority to projects in which: |
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(A) 15 [50] percent or more of the [residential] |
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units [in the project] are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 30 [50] percent |
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of the area median family income minus an allowance for utility |
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costs authorized under the federal low-income housing tax credit |
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program; and |
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(ii) reserved for families or [and] |
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individuals with incomes that do [earning] not exceed 30 [more than
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50] percent of the area median income of the county; [and] |
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(B) 83 [the remaining 50] percent or more of the |
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[residential] units [in the project] are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families or [and] |
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individuals with incomes that do [earning] not exceed [more than] |
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60 percent of the area median income of the county; and |
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(C) two percent or less of the units are not rent |
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or income restricted units; |
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(3) third priority to [(2)] projects in which: |
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(A) 49 [15] percent or more of the [residential] |
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units [in the project] are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 50 [30] percent |
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of the area median family income minus an allowance for utility |
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costs authorized under the federal low-income housing tax credit |
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program; and |
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(ii) reserved for families or [and] |
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individuals with incomes that do [earning] not exceed 50 [more than
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30] percent of the area median income; [and] |
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(B) 49 [the remaining 85] percent or more of the |
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[residential] units [in the project] are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families or [and] |
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individuals with incomes that do [earning] not exceed [more than] |
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60 percent of the area median income; and |
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(C) two percent or less of the units are not rent |
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or income restricted units; |
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(4) fourth priority to [(3)] projects in which: |
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(A) the development is located in a census tract |
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in which the area median income is higher than the area median |
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income for the county in which the tract is located; |
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(B) 98 [in which 100] percent or more of the |
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[residential] units [in the project] are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families or [and] |
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individuals with incomes that do [earning] not exceed [more than] |
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60 percent of the area median income of the county; and |
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(C) two percent or less of the units are not rent |
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or income restricted units [(B) which are located in a census
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tract in which the median income, based on the most recent
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information published by the United States Bureau of the Census, is
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higher than the median income for the county, metropolitan
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statistical area, or primary metropolitan statistical area in which
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the census tract is located as established by the United States
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Department of Housing and Urban Development]; [or] |
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(5) fifth priority to projects in which: |
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(A) 98 percent or more of the units are: |
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(i) under the restriction that the maximum |
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allowable rents are an amount equal to 30 percent of 60 percent of |
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the area median family income minus an allowance for utility costs |
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authorized under the federal low-income housing tax credit program; |
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and |
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(ii) reserved for families or individuals |
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with incomes that do not exceed 60 percent of the area median income |
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of the county; and |
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(B) two percent or less of the units are not rent |
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or income restricted units; and |
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(6) sixth priority to any other qualified residential |
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rental project [(4) on or after June 1, projects that are located
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in counties, metropolitan statistical areas, or primary
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metropolitan statistical areas with area median family incomes at
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or below the statewide median family income established by the
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United States Department of Housing and Urban Development]. |
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(b) The board may not reserve a portion of the state ceiling |
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for a first through fifth [or second] priority project described by |
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this section unless the board receives evidence that an application |
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has been filed with the Texas Department of Housing and Community |
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Affairs for the low-income housing tax credit that is available for |
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multifamily transactions that are at least 51 percent financed by |
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tax-exempt private activity bonds. |
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(c) Applicants who qualify under Section 1372.0231(b-1) or |
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(e) are not eligible for consideration as a first priority. |
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(d) For the purposes of Subsections (a)(1)-(5), the area |
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median income must be based on the most recent information |
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published by the United States Census Bureau. |
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SECTION 9. Section 1372.037(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsection (b), before September 1 |
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the board may not grant for any single project a reservation for |
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that year that is greater than: |
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(1) $25 million, if the issuer is an issuer of |
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qualified mortgage bonds, other than the Texas Department of |
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Housing and Community Affairs; |
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(2) $50 million, if the issuer is an issuer of a |
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state-voted issue, other than the Texas Higher Education |
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Coordinating Board, or $75 million, if the issuer is the Texas |
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Higher Education Coordinating Board; |
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(3) the amount to which the Internal Revenue Code |
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limits issuers of qualified small issue bonds and enterprise zone |
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facility bonds, if the issuer is an issuer of those bonds; |
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(4) the lesser of $20 [$15] million or 15 percent of |
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the amount set aside for reservation by issuers of qualified |
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residential rental project bonds with respect to a single site, if |
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the issuer is an issuer of those bonds; |
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(5) the lesser of $25 million or 15 percent of the |
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amount set aside for reservation by issuers of qualified |
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residential rental project bonds with respect to multiple sites as |
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described by Section 1372.002(c), if the issuer is an issuer of |
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those bonds; |
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(6) the amount as prescribed in Sections 1372.033(d), |
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(e), and (f), if the issuer is an issuer authorized by Section |
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53.47, Education Code, to issue qualified student loan bonds; or |
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(7) [(6)] $50 million, if the issuer is any other |
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issuer of bonds that require an allocation. |
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SECTION 10. Section 1372.042, Government Code, is amended |
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by amending Subsections (a-1) and (c) and adding Subsections (a-2) |
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through (a-4) to read as follows: |
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(a-1) An issuer of qualified residential rental project |
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bonds shall close on the bonds for which the reservation was granted |
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for a single site application not later than the 150th day after the |
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reservation date. If the [an] issuer to which this subsection |
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applies [of qualified residential rental project bonds] fails to |
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close on the bonds for which a reservation was granted, the issuer |
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shall pay the full closing fee provided by Section 1372.006(b) if |
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the application is not withdrawn before the 120th day after the |
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reservation date. |
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(a-2) An issuer of qualified residential rental project |
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bonds shall close on the bonds for which the reservation was granted |
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for a project described by Section 1372.002(c) not later than the |
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180th day after the reservation date. If the issuer fails to close |
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on the bonds for which a reservation was granted, the issuer shall |
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pay the full closing fee provided by Section 1372.006(b) if the |
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application is not withdrawn before the 150th day after the |
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reservation date. |
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(a-3) Notwithstanding Subsections (a-1) and (a-2), an |
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issuer of qualified residential rental project bonds may request |
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the following three extensions, subject to the payment of the |
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following fees by the issuer directly to the housing trust fund |
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administered under Subchapter I: |
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(1) one extension of not more than 30 days for a fee of |
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$20,000; |
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(2) after the expiration of an extension under |
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Subdivision (1), a second extension of not more than 30 days for a |
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fee of $40,000; and |
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(3) after the expiration of an extension under |
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Subdivision (2), a third extension of not more than 30 days for a |
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fee of $60,000. |
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(a-4) Each extension or extension fee described by |
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Subsection (a-3) is independent from any other extension or fee |
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described by that subsection and may not be aggregated with the |
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other extensions and fees, as applicable, for purposes of making a |
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single request for multiple 30-day extensions. |
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(c) Notwithstanding Subsections (a), (a-1), (a-2), (a-3), |
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and (b), if the 120-day period, the 150-day period, [or] the 180-day |
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period, or any extension period granted, as applicable, expires on |
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or after December 24 of the year in which the reservation was |
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granted, the issuer shall close on the bonds before December 24, |
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except that if the applicable period expires after December 31 of |
|
that year, the issuer may notify the board in writing before |
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December 24 of the issuer's election to carry forward the |
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reservation and of the issuer's expected bond closing date. In |
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compliance with the requirements of Section 146(f), Internal |
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Revenue Code of 1986, the board shall file in a timely manner a |
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carryforward election with respect to any bonds expected to close |
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after December 31 to permit the bonds to close by the expected date, |
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except that the board may not file the carryforward election after |
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February 15 of the year following the year in which the reservation |
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was granted. The grant of the reservation for the balance of the |
|
120-day period, the 150-day period, or the 180-day period, as |
|
applicable, is automatically and immediately reinstated on the |
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board's filing of a carryforward election with respect to the |
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reservation. |
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SECTION 11. Section 1372.043, Government Code, is amended |
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to read as follows: |
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Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S |
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FAILURE TO TIMELY CLOSE ON BONDS. (a) If an issuer of qualified |
|
residential rental project bonds does not close on the issuer's |
|
bonds as required by Section 1372.042: |
|
(1) the reservation for the issue is canceled; and |
|
(2) for the period beginning on the reservation date |
|
and ending on the last allowable date under that section, including |
|
any qualified extensions: |
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(A) the issuer may not submit an application for |
|
a reservation for the same project; and |
|
(B) the issuer is eligible for a carryforward |
|
designation for the project only as provided by Subchapter C. |
|
(b) If an issuer of qualified mortgage bonds does not close |
|
on the issuer's bonds as required by Section 1372.042: |
|
(1) the reservation for the issue is canceled; and |
|
(2) for the period beginning on the reservation date |
|
and ending on the 150th day after the reservation date or on the |
|
210th day after the reservation date [if the issuer is an issuer of
|
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qualified mortgage bonds]: |
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(A) no issuer may submit an application for a |
|
reservation for the same project; and |
|
(B) the issuer is eligible for a carryforward |
|
designation for the project only as provided by Subchapter C. |
|
SECTION 12. The following sections of the Government Code |
|
are repealed: |
|
(1) Sections 1372.0321(a-1) and (a-2), as added by |
|
Section 28, Chapter 330, Acts of the 78th Legislature, Regular |
|
Session, 2003; and |
|
(2) Sections 1372.0321(a-1) and (a-2), as added by |
|
Section 10, Chapter 1329, Acts of the 78th Legislature, Regular |
|
Session, 2003. |
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SECTION 13. The change in law made by this Act in amending |
|
Chapter 1372, Government Code, applies only to a reservation of |
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state ceiling granted on or after January 1, 2008. |
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SECTION 14. This Act takes effect September 1, 2007. |