82R1318 JAM-D
  By: Menendez H.B. No. 309
  relating to the establishment of the supportive living facility
  pilot program.
         SECTION 1.  Section 2306.6710(b), 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
                     (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
                     (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 the
  state representative or the state senator that represents the
  district containing the proposed development site;
                     (G)  the rent levels of the units;
                     (H)  the cost of the development by square foot;
                     (I)  the services to be provided to tenants of the
  development; [and]
                     (J)  whether, at the time the complete application
  is submitted or at any time within the two-year period preceding the
  date of submission, the proposed development site is located in an
  area declared to be a disaster under Section 418.014; and
                     (K)  whether the proposed development is a
  supportive living facility developed under Section 2306.6739;
               (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; and
               (3)  encourages applicants to provide free notary
  public service to the residents of the developments for which the
  allocation of housing tax credits is requested.
         SECTION 2.  Subchapter DD, Chapter 2306, Government Code, is
  amended by adding Section 2306.6739 to read as follows:
  AND SET-ASIDE. (a) In this section:
               (1)  "Commission" means the Health and Human Services
               (2)  "Health and human services agency" means an agency
  listed in Section 531.001.
               (3)  "Pilot program" means the supportive living
  facility pilot program established under this section.
               (4)  "Supportive living facility" means a freestanding
  facility, or a distinct physical and operational entity within a
  nursing facility, that:
                     (A)  offers residents their own separate,
  private, and distinct living units; and
                     (B)  integrates housing with health care,
  personal care, and other supportive services.
         (b)  The department shall, in coordination with the
  commission and any other health and human services agency
  designated by the commission, establish the supportive living
  facility pilot program to:
               (1)  facilitate the use of housing tax credits to build
  or rehabilitate supportive living facilities; and
               (2)  to the extent permitted by federal law, use money
  received under the Medicaid program to pay for housing and services
  provided by supportive living facilities.
         (c)  The department shall set aside for supportive living
  facilities developed under the pilot program not less than five
  percent of the housing tax credits available for allocation in the
  calendar year. Any amount of housing tax credits set aside under
  this subsection that remains after the initial allocation of
  housing tax credits is available for allocation to any eligible
  applicant as provided by the qualified allocation plan.
         (d)  The commission or designated health and human services
  agency, as appropriate, shall apply for and actively pursue any
  waiver to the state Medicaid plan from the federal Centers for
  Medicare and Medicaid Services or any other federal agency as
  necessary to implement the pilot program.
         (e)  The department, in conjunction with the commission and
  to the extent consistent with the department's regional allocation
  formula and the other set-asides provided by this chapter, shall
  develop methodologies and incentives to encourage and facilitate
  the completion of a supportive living facility not later than
  September 1, 2015, in:
               (1)  each of the four most populous primary
  metropolitan statistical areas; and
               (2)  at least two rural areas.
         (f)  Not later than December 31 of each year, the department,
  the commission, and any health and human services agencies
  designated by the commission shall collaborate to submit a report
  to the legislature regarding the implementation and effectiveness
  of the pilot program. The report must include an assessment of any
  cost savings of the pilot program and recommendations for expanding
  or modifying the pilot program.
         (g)  The board shall, in consultation with the commission,
  adopt rules necessary to implement this section, including any
  eligibility requirements required for persons to reside in
  supportive living facilities.
         SECTION 3.  The change in law made by this Act in adding
  Section 2306.6739(c), Government Code, applies only to the
  allocation of low income housing tax credits for an application
  cycle that begins on or after January 1, 2013. The allocation of
  low income housing tax credits for an application cycle that begins
  before January 1, 2013, is governed by the law in effect on the date
  the application cycle began, and the former law is continued in
  effect for that purpose.
         SECTION 4.  The board of the Texas Department of Housing and
  Community Affairs shall adopt any rules required by Section
  2306.6739, as added by this Act, in conjunction with the qualified
  allocation plan created for the 2013 application cycle, and the
  department during that cycle shall begin accepting applications for
  low income housing tax credits for the development of supportive
  living facilities under Section 2306.6739, Government Code, as
  added by this Act.
         SECTION 5.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2011.
         (b)  Section 2306.6739(f), as added by this Act, takes effect
  January 1, 2015.