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A BILL TO BE ENTITLED
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AN ACT
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relating to the evaluation of applications for certain financial |
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assistance administered by the Texas Department of Housing and |
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Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.1114(a), Government Code, is |
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amended to read as follows: |
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(a) Not later than the 14th day after the date an |
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application or a proposed application for housing funds described |
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by Section 2306.111 has been filed, the department shall provide |
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written notice of the filing of the application or proposed |
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application to the following persons: |
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(1) the United States representative who represents |
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the community containing the development described in the |
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application; |
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(2) members of the legislature who represent the |
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community containing the development described in the application; |
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(3) the presiding officer of the governing body of the |
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political subdivision containing the development described in the |
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application; |
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(4) any member of the governing body of a political |
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subdivision who represents the area containing the development |
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described in the application; |
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(5) the superintendent and the presiding officer of |
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the board of trustees of the school district containing the |
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development described in the application; [and] |
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(6) any neighborhood organizations on record with the |
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state, municipality, or county in which the development described |
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in the application is to be located and whose boundaries, as |
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established by the applicable record on file: |
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(A) contain the proposed development site; or |
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(B) encompass the same public elementary school |
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attendance zone, or a portion of the same zone, as the proposed |
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development site, if the boundary of the organization is located |
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not more than one linear mile from the site; and |
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(7) any public housing authority resident's council |
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with one or more members who reside or who the applicant knows are |
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likely to reside at the development described in the application. |
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SECTION 2. Section 2306.6704(b-1), Government Code, is |
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amended to read as follows: |
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(b-1) The preapplication process must require the applicant |
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to provide the department with evidence that the applicant has |
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notified the following entities with respect to the filing of the |
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application: |
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(1) any neighborhood organizations on record with the |
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state, municipality, or county in which the development is to be |
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located and whose boundaries, as established by the applicable |
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record on file: |
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(A) contain the proposed development site; or |
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(B) encompass the same public elementary school |
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attendance zone, or a portion of the same zone, as the proposed |
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development site, if the boundary of the organization is located |
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not more than one linear mile from the site; |
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(2) the superintendent and the presiding officer of |
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the board of trustees of the school district containing the |
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development; |
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(3) the presiding officer of the governing body of any |
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municipality containing the development and all elected members of |
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that body; |
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(4) the presiding officer of the governing body of the |
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county containing the development and all elected members of that |
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body; [and] |
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(5) the state senator and state representative of the |
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district containing the development; and |
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(6) any public housing authority resident's council |
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with one or more members who reside or who the applicant knows are |
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likely to reside at the development. |
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SECTION 3. Section 2306.6705, Government Code, is amended |
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to read as follows: |
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Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An |
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application must contain at a minimum the following written, |
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detailed information in a form prescribed by the board: |
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(1) a description of: |
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(A) the financing plan for the development, |
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including any nontraditional financing arrangements; |
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(B) the use of funds with respect to the |
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development; |
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(C) the funding sources for the development, |
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including: |
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(i) construction, permanent, and bridge |
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loans; and |
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(ii) rents, operating subsidies, and |
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replacement reserves; and |
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(D) the commitment status of the funding sources |
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for the development; |
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(2) if syndication costs are included in the eligible |
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basis, a justification of the syndication costs for each cost |
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category by an attorney or accountant specializing in tax matters; |
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(3) from a syndicator or a financial consultant of the |
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applicant, an estimate of the amount of equity dollars expected to |
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be raised for the development in conjunction with the amount of |
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housing tax credits requested for allocation to the applicant, |
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including: |
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(A) pay-in schedules; and |
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(B) syndicator consulting fees and other |
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syndication costs; |
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(4) if rental assistance, an operating subsidy, or an |
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annuity is proposed for the development, any related contract or |
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other agreement securing those funds and an identification of: |
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(A) the source and annual amount of the funds; |
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(B) the number of units receiving the funds; and |
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(C) the term and expiration date of the contract |
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or other agreement; |
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(5) if the development is located within the |
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boundaries of a political subdivision with a zoning ordinance, |
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evidence in the form of a letter from the chief executive officer of |
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the political subdivision or from another local official with |
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jurisdiction over zoning matters that states that: |
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(A) the development is permitted under the |
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provisions of the ordinance that apply to the location of the |
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development; or |
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(B) the applicant is in the process of seeking |
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the appropriate zoning and has signed and provided to the political |
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subdivision a release agreeing to hold the political subdivision |
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and all other parties harmless in the event that the appropriate |
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zoning is denied; |
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(6) if an occupied development is proposed for |
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rehabilitation: |
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(A) an explanation of the process used to notify |
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and consult with the tenants in preparing the application; |
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(B) a relocation plan outlining: |
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(i) relocation requirements; and |
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(ii) a budget with an identified funding |
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source; and |
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(C) if applicable, evidence that the relocation |
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plan has been submitted to the appropriate local agency; |
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(7) a certification of the applicant's compliance with |
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appropriate state and federal laws, as required by other state law |
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or by the board; |
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(8) any other information required by the board in the |
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qualified allocation plan; and |
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(9) evidence that the applicant has notified the |
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following entities with respect to the filing of the application: |
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(A) any neighborhood organizations on record |
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with the state, municipality, or county in which the development is |
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to be located and whose boundaries, as established by the |
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applicable record on file: |
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(i) contain the proposed development site; |
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or |
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(ii) encompass the same public elementary |
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school attendance zone, or a portion of the same zone, as the |
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proposed development site, if the boundary of the organization is |
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located not more than one linear mile from the site; |
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(B) the superintendent and the presiding officer |
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of the board of trustees of the school district containing the |
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development; |
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(C) the presiding officer of the governing body |
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of any municipality containing the development and all elected |
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members of that body; |
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(D) the presiding officer of the governing body |
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of the county containing the development and all elected members of |
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that body; [and] |
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(E) the state senator and state representative of |
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the district containing the development; and |
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(F) any public housing authority resident's |
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council with one or more members who reside or who the applicant |
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knows are likely to reside at the development. |
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SECTION 4. Section 2306.6710, Government Code, is amended |
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by amending Subsection (b) and adding Subsection (g) to read as |
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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: |
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(i) any neighborhood organizations on |
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record with the state, municipality, or county in which the |
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development is to be located and whose boundaries, as established |
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by the applicable record on file: |
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(a) contain the proposed development |
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site; or |
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(b) encompass the same public |
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elementary school attendance zone, or a portion of the same zone, as |
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the proposed development site, if the boundary of the organization |
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is located not more than one linear mile from the site; or |
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(ii) any public housing authority |
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resident's council with one or more members who reside or who the |
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applicant knows are likely to reside at the development; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) the commitment of development funding by |
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local political subdivisions; |
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(F) the level of community support for the |
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application, evaluated on the basis of written statements from the |
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state representative or the state senator that represents the |
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district containing the proposed development site; |
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(G) the rent levels of the units; |
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(H) the cost of the development by square foot; |
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(I) the services to be provided to tenants of the |
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development; and |
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(J) whether, at the time the complete application |
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is submitted or at any time within the two-year period preceding the |
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date of submission, the proposed development site is located in an |
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area declared to be a disaster under Section 418.014; |
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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; and |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested. |
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(g) The department shall presume that the applicant has made |
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a good faith effort to obtain community participation and shall |
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award the applicant the total number of points that may be awarded |
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under Subsection (b)(1)(B) if the application includes a statement |
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that an organization or other entity described by Subsection |
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(b)(1)(B) does not exist, as verified by: |
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(1) the presiding officer or authorized |
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representative of the governing body of the municipality in which |
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the development is to be located; or |
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(2) the clerk of the county in which the development is |
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to be located if the development is to be located outside a |
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municipality. |
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SECTION 5. The changes in law made by this Act relating to |
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applications for financial assistance administered by the Texas |
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Department of Housing and Community Affairs apply only to an |
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application filed on or after the effective date of this Act. An |
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application filed before the effective date of this Act is governed |
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by the law in effect on the date the application was filed, and the |
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former law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2009. |