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A BILL TO BE ENTITLED
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AN ACT
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relating to the system by which an application for a low income |
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housing tax credit is scored. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2306.6710(b) and (f), Government Code, |
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are 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) whether the development is a mixed-income |
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development providing at least 20 percent of the development's |
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units to individuals and families with incomes greater than 60 |
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percent of the area median family income; |
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(D) the income levels of tenants of the |
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development; |
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(E) [(D)] the size and quality of the units; |
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(F) [(E)] the commitment of development funding |
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by local political subdivisions; |
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(G) [(F)] the level of community support for the |
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application, evaluated on the basis of written statements from |
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state elected officials; |
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(H) [(G)] the rent levels of the units; |
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(I) [(H)] the cost of the development by square |
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foot, unless the development exceeds a height of five stories; and |
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(J) [(I)] the services to be provided to tenants |
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of the 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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(f) In evaluating the level of community support for an |
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application under Subsection (b)(1)(G) [(b)(1)(F)], the department |
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shall award: |
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(1) positive points for positive written statements |
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received; |
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(2) negative points for negative written statements |
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received; and |
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(3) zero points for neutral statements received. |
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SECTION 2. 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 3. This Act takes effect September 1, 2007. |