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