Amend HB 3361 (second reading engrossment) as follows:

(1)  Strike SECTION 1.08 in ARTICLE 1 of the bill and renumber subsequent SECTIONS of the ARTICLE accordingly.

(2)  Strike SECTION 2.01 in ARTICLE 2 of the bill and substitute the following:

SECTION 2.01.  Section 2306.6710, Government Code, is amended by amending Subsections (b) and (f) and adding Subsection (g) 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 support [participation] with respect to the development, evaluated on the basis of:

(a)  the governing body of the municipality in which any part 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 is to be located;

(c)  the governing bodies of the municipality and county in which the proposed development site is to be located, if any part of the proposed site is to be located in the extraterritorial jurisdiction of a municipality;

(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 the state representative or the state senator that represents the district containing the proposed development site;

[(G)]  the rent levels of the units;

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

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

(I) [(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

(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.

(f)  In evaluating the level of community support for an application under Subsection (b)(1)(B)(i) [(b)(1)(F)], the department shall award:

(1)  positive points for positive written statements received;

(2)  negative points for negative written statements received; and

(3)  zero points for neutral statements received.

(3)  Add the appropriately numbered SECTIONS to ARTICLE 2 of the bill and renumber subsequent SECTIONS of the ARTICLE accordingly:

SECTION 2.____. Section 2306.67021, Government Code, is amended to read as follows:

Sec. 2306.67021.  APPLICABILITY OF SUBCHAPTER. Except as provided by Sections [Section] 2306.6703 and 2306.67071, this subchapter does not apply to the allocation of housing tax credits to developments financed through the private activity bond program.

SECTION 2.____.  Subchapter DD, Chapter 2306, Government Code, is amended by adding Section 2306.67071 to read as follows:

(4)  In SECTION 5.01 of the bill, strike the list of repealed provisions and substitute the following:

(1)  Section 2306.255(h); and

(2)  Section 2306.560(d).