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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 contain the |
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proposed development site. |
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SECTION 2. Section 2306.6703, Government Code, is amended |
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to read as follows: |
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Sec. 2306.6703. INELIGIBILITY FOR CONSIDERATION. (a) An |
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application is ineligible for consideration under the low income |
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housing tax credit program if: |
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(1) at the time of application or at any time during |
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the two-year period preceding the date the application round |
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begins, the applicant or a related party is or has been: |
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(A) a member of the board; or |
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(B) the director, a deputy director, the director |
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of housing programs, the director of compliance, the director of |
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underwriting, or the low income housing tax credit program manager |
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employed by the department; |
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(2) the applicant proposes to replace in less than 15 |
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years any private activity bond financing of the development |
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described by the application, unless: |
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(A) the applicant proposes to maintain for a |
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period of 30 years or more 100 percent of the development units |
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supported by housing tax credits as rent-restricted and exclusively |
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for occupancy by individuals and families earning not more than 50 |
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percent of the area median income, adjusted for family size; [and] |
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(B) at least one-third of all the units in the |
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development are public housing units or Section 8 project-based |
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units; or |
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(C) the proceeds of the private activity bond |
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financing will only be redeemed in an amount consistent with their |
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proportionate amortization; or |
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(D) the proceeds of the private activity bond |
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financing will only be redeemed in an amount necessary to ensure the |
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financial feasibility of the proposal described by the application |
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and according to underwriting criteria established by the |
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department and provided that such redemption to the extent that it |
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reduces the bond amount to less than 50 percent of the cost of the |
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land plus depreciable basis in the first five years of operation is |
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allowed only if the Bond Review Board has determined that there |
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remain sufficient funds to fund all other mutlifamily applications |
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for such bonds that do not call for such a reduction; |
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(3) unless the applicant obtains approval of the |
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development from the governing body of the appropriate municipality |
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or county containing the development, the applicant proposes to |
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develop [construct] a new construction development that is located |
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one linear mile or less from a development that: |
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(A) serves the same type of household as the new |
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development[, regardless of whether the developments serve
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families, elderly individuals, or another type of household]; |
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(B) has received an allocation of housing tax |
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credits for new construction at any time during the three-year |
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period preceding the date the application round begins; and |
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(C) has not been withdrawn or terminated from the |
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low income housing tax credit program; or |
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(4) the development is located in a municipality or, |
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if located outside a municipality, a county that has more than twice |
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the state average of units per capita supported by housing tax |
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credits or private activity bonds, unless the applicant: |
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(A) obtains [has obtained prior] approval of the |
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development from the governing body of the appropriate municipality |
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or county containing the development; and |
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(B) provides, not later than the 30th day before |
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the date the board first meets to consider applications for an |
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allocation of housing tax credits, [has included in the
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application] a written statement of support from that governing |
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body referencing this section and authorizing an allocation of |
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housing tax credits for the development. |
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(b) Subsections (a)(2), (3), and (4) do [Subsection (a)(3)
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does] not apply to a development: |
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(1) that is using: |
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(A) federal HOPE VI funds or other similar funds |
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received through the United States Department of Housing and Urban |
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Development to assist in the preservation, through same-site |
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reconstruction or rehabilitation, of distressed federally assisted |
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housing; |
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(B) locally approved funds received from a public |
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improvement district or a tax increment financing district; |
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(C) funds provided to the state under the |
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Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. |
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Section 12701 et seq.); or |
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(D) funds provided to the state and participating |
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jurisdictions under the Housing and Community Development Act of |
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1974 (42 U.S.C. Section 5301 et seq.); or |
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(2) that is located in a county with a population of |
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less than one million[;
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[(3)
that is located outside of a metropolitan
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statistical area; or
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[(4)
that a local government where the project is to be
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located has by vote specifically allowed the construction of a new
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development located within one linear mile or less from a
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development under Subsection (a)]. |
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SECTION 3. 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 contain the proposed development 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. |
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SECTION 4. 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 contain the proposed development |
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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. |
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SECTION 5. Section 2306.6710(b), Government Code, is |
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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, municipality, or county in which the development is to be |
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located and whose boundaries contain the proposed development site; |
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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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SECTION 6. Section 2306.6711(f), Government Code, is |
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amended to read as follows: |
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(f) The board may allocate housing tax credits to |
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developments [more than one development] in a single community that |
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are or will be located one linear mile or less from each other, as |
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defined by department rule, in the same calendar year [only] if: |
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(1) the community is located in a county with a |
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population of one million or less; |
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(2) one or more of the allocations involves the |
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rehabilitation of existing developments and not more than one of |
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the allocations involves new construction; or |
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(3) the developments each serve a different type of |
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household from the other [the developments are or will be located
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more than one linear mile apart]. [This subsection applies only to
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communities contained within counties with populations exceeding
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one million.] |
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SECTION 7. 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 8. This Act takes effect September 1, 2009. |