(1) Add the following appropriately numbered SECTIONS to ARTICLE 3 of the bill and renumber subsequent SECTIONS of that ARTICLE accordingly:

SECTION 3.___. Section 2306.6711(b), Government Code, is amended to read as follows:

(b) Not later than the deadline specified in the qualified allocation plan, the board shall issue commitments for available housing tax credits based on the application evaluation process provided by Section 2306.6710. The board may not allocate to an applicant housing tax credits in any unnecessary amount, as determined by the department's underwriting policy and by federal law, and in any event may not allocate to the applicant housing tax credits in an amount greater than $3 [$2] million in a single application round.

SECTION 3.___. Section 2306.6725, Government Code, is amended by adding Subsection (b-1) to read as follows:

(b-1) The department shall provide appropriate incentives as determined through the qualified allocation plan to reward applicants who:

(1) on the date an application round begins, are doing business in this state for purposes of Chapter 171, Tax Code;

(2) using financing or other assistance from the department, have developed and completed:

(A) at least 150 units of comparable housing if the proposed project is located in a rural area; or

(B) at least 350 units of comparable housing if the proposed project is located in an area other than a rural area; and

(3) in the five-year period preceding the date the application round begins, have not had any instances of material noncompliance with respect to a project for which the department provided financing or other assistance.

(2) Add the following appropriately numbered SECTION to ARTICLE 5 of the bill and renumber subsequent SECTIONS of that ARTICLE accordingly:

SECTION 5.___. The changes in law made by this Act to Sections 2306.6711 and 2306.6725, Government Code, apply only to an application for low income housing tax credits that is submitted to the Texas Department of Housing and Community Affairs during an application cycle that begins on or after the effective date of this Act. An application that is submitted during an application cycle that began before the effective date of this Act is governed by the law in effect at the time the application cycle began, and the former law is continued in effect for that purpose.