80R6058 KCR-F
 
  By: Lucio S.B. No. 1873
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of private activity bonds.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 1372.002, Government Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
       (a)  For purposes of this chapter, a project is:
             (1)  an eligible facility or an eligible group of
facilities that is proposed to be financed, in whole or in part, by
an issue of bonds; or
             (2)  in connection with an issue of qualified mortgage
bonds or qualified student loan bonds, the providing of financial
assistance to qualified mortgagors or students located in all or
any part of the jurisdiction of the issuer.
       (c)  For purposes of Subsection (a), a group of eligible
facilities includes an application under this chapter that includes
both rehabilitation and new construction of qualified residential
rental facilities located at multiple sites and with respect to
which 51 percent or more of the residential units are located:
             (1)  in a county with a population of less than 75,000;
or
             (2)  in a county in which the median income is less than
the median income for the state, provided that the units are located
in that portion of the county that is not included in a metropolitan
statistical area containing one or more projects that are proposed
to be financed, in whole or in part, by an issuance of bonds.
       (d)  For purposes of Subsection (c), in an application for a
reservation, the number of sites may be reduced as needed without
affecting their status as a project for purposes of the
application, provided that the final application for a reservation
contains at least two sites.
       SECTION 2.  Sections 1372.0231(d), (e), (g), and (i),
Government Code, are amended to read as follows:
       (d)  Except as provided by Subsection (i), before May [June]
1, the board shall apportion the amount of the state ceiling set
aside under Subsection (a)(2) among the uniform state service
regions according to the percentage of the state's population that
resides in each of those regions.
       (e)  Until March 1 [May 15] of each year, for each of the
uniform state service regions containing [Austin,] Dallas [,] or
Houston, the board shall reserve a total of $15 million of the state
ceiling set aside for the region under Subsection (d) for:
             (1) the areas in the region that are located outside of
a metropolitan statistical area; and
             (2)  projects involving the rehabilitation of a
qualified residential rental facility or facilities in the region,
regardless of whether the projects are located inside or outside a
metropolitan statistical area.
       (g)  On or after May [June] 1, the board may not grant
available reservations to housing finance corporations described
by Subsection (a) based on uniform state service regions or any
segments of those regions.
       (i)  Before May [June] 1, the board shall apportion the
amount of the state ceiling set aside under Subsection (a)(2) only
among uniform state service regions with respect to which an issuer
has submitted an application for a reservation of the state ceiling
on or before March 1.
       SECTION 3.  Section 1372.0261, Government Code, is amended
by amending Subsection (a) and adding Subsection (e) to read as
follows:
       (a)  In this section, "utilization percentage" means that
portion of the amount of the state ceiling allocated to a housing
finance corporation with respect to which the corporation issues
private activity bonds that result in mortgage loans or mortgage
credit certificates. A housing finance corporation's utilization
percentage for an allocation of the state ceiling is the quotient
of:
             (1)  the amount of the state ceiling that is used to
purchase mortgages or mortgage-backed securities, [or the amount of
the state ceiling used to] issue mortgage credit certificates, or
originate mortgage loans; divided by
             (2)  the amount of the state ceiling allocated, minus
any amounts of the state ceiling required for debt service reserve
funds.
       (e)  For the purpose of Subsection (a)(1), only the original
principal balance of originated mortgage loans may be used in
computing a utilization percentage.
       SECTION 4.  Section 1372.031, Government Code, is amended to
read as follows:
       Sec. 1372.031.  PRIORITIES FOR RESERVATIONS AMONG CERTAIN
ISSUERS.  Subject to Sections 1372.0321, [and] 1372.0231, and
1372.035(c) if, on or before October 20, more than one issuer in a
category described by Section 1372.022(a)(2), (3), (4), or (6)
applies for a reservation of the state ceiling for the next program
year, the board shall grant reservations in that category in the
order determined by the board by lot.
       SECTION 5.  Section 1372.0321(a-1), Government Code, as
added by Chapters 330 and 1329, Acts of the 78th Legislature,
Regular Session, 2003, is reenacted and amended to read as follows:
       (a-1)  In granting reservations to issuers of qualified
residential rental project issues, the board shall give second
priority to projects in which 80 [100] percent or more of the
residential units in the project are:
             (1)  under the restriction that the maximum allowable
rents are an amount equal to 30 percent of 60 percent of the area
median family income minus an allowance for utility costs
authorized under the federal low-income housing tax credit program;
and
             (2)  reserved for families and individuals earning not
more than 60 percent of the area median income.
       SECTION 6.  Section 1372.035, Government Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
       (b)  Except as provided by Sections 1372.031-1372.033 and
Subsection (c), the board shall grant reservations in the order in
which the applications for those reservations are received,
regardless of the amounts of the related bond issues.
       (c)  If an issuer receives a carryforward designation with
respect to an application, the board shall grant a reservation with
respect to the issuer's next available application on the earlier
of the following:
             (1)  the date of receipt of notice from the issuer that
the application for which the issuer received the carryforward
designation is being withdrawn; or
             (2)  the date of expiration of the period specified by
Section 1372.042(a-1).
       SECTION 7.  Section 1372.070, Government Code, is amended to
read as follows:
       Sec. 1372.070.  FORM AND CONTENTS OF APPLICATION FOR
CARRYFORWARD APPLICATION.  An application for a carryforward
designation must:
             (1)  be on a form prescribed by the board;
             (2)  be signed by a member or officer of the issuer [and
by:
                   [(A)  the governor, if the issuer was created to
act on behalf of this state; or
                   [(B)  the presiding officer or another authorized
official of each political subdivision, if the issuer was created
to act on behalf of one or more political subdivisions of this
state];
             (3)  state the amount of carryforward sought;
             (4)  describe the project;
             (5)  state which priority classification is applicable
to the applicant;
             (6)  include evidence satisfactory to the board that
that priority classification is correct; and
             (7)  contain any other information that the board by
rule requires.
       SECTION 8.  Section 1372.0261, Government Code, as amended
by this Act, applies only to a reservation of state ceiling granted
on or after January 1, 2008.
       SECTION 9.  This Act takes effect September 1, 2007.