By: Ellis S.B. No. 1908

(In the Senate - Filed March 9, 2007; March 22, 2007, read first time and referred to Committee on Government Organization; April 19, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; April 19, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1908 By: Ellis

A BILL TO BE ENTITLED

AN ACT

relating to the system by which an application for a low income housing tax credit is scored.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (b), Section 2306.6710, Government Code, is amended to read as follows:

(b) If an application satisfies the threshold criteria, the department shall score and rank the application using a point system that:

(1) prioritizes in descending order criteria regarding:

(A) financial feasibility of the development based on the supporting financial data required in the application that will include a project underwriting pro forma from the permanent or construction lender;

(B) quantifiable community participation with respect to the development, evaluated on the basis of written statements from any neighborhood organizations on record with the state or county in which the development is to be located and whose boundaries contain the proposed development site;

(C) the income levels of tenants of the development;

(D) the size and quality of the units;

(E) the commitment of development funding by local political subdivisions;

(F) [the level of community support for the application, evaluated on the basis of written statements from state elected officials;

[(G)] the rent levels of the units;

(G) [(H)] the cost of the development by square foot; and

(H) [(I)] the services to be provided to tenants of the development; and

(2) uses criteria imposing penalties on applicants or affiliates who have requested extensions of department deadlines relating to developments supported by housing tax credit allocations made in the application round preceding the current round or a developer or principal of the applicant that has been removed by the lender, equity provider, or limited partners for its failure to perform its obligations under the loan documents or limited partnership agreement.

SECTION 2. Subsections (f) and (g), Section 2306.6710, Government Code, and Subsection (b), Section 2306.6718, Government Code, are repealed.

SECTION 3. The change in law made by this Act applies only to an application for a low income housing tax credit filed on or after the effective date of this Act. An application filed before the effective date of this Act is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2007.

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