83R132 JAM-F

By: Menendez H.B. No. 43

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of the affordable assisted living facility program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

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 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 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 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;

(H) the cost of the development by square foot;

(I) whether the proposed development is an affordable assisted living facility developed under Section 2306.6739;

(J) the services to be provided to tenants of the development; and

(K) [(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;

(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:

Sec. 2306.6739. AFFORDABLE ASSISTED LIVING FACILITY PROGRAM. (a) In this section:

(1) "Affordable assisted living facility" means a facility that:

(A) is licensed, or will be required to be licensed when constructed, under Chapter 247, Health and Safety Code;

(B) offers residents their own separate, private, and distinct living units;

(C) offers at least 60 percent of its affordable assisted living units for rent by persons who are:

(i) 55 years of age or older; and

(ii) eligible to reside in developments that are administered by the department and designed primarily to serve the elderly; and

(D) integrates housing with health care, personal care, and other supportive services.

(2) "Commission" means the Health and Human Services Commission.

(3) "Controlling person" means a person who controls an assisted living facility or other person as described by Section 247.005, Health and Safety Code.

(4) "Program" means the affordable assisted living facility program established under this section.

(b) The department shall, in coordination with the commission, establish the affordable assisted living facility program to:

(1) facilitate the use of housing tax credits for new construction or for reconstruction of affordable assisted living facilities; and

(2) require the participation of controlling persons who have at least two years of experience in providing assisted living services at a facility located in this state that:

(A) is licensed under Chapter 247, Health and Safety Code; and

(B) has a licensed capacity of at least 40 beds.

(c) The department shall set aside for affordable assisted living facilities developed under the program in municipalities with populations of at least 750,000 not less than 15 percent of the housing tax credits available for allocation in the calendar years 2015, 2016, 2017, 2018, and 2019. 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. This subsection expires September 1, 2020.

(d) The department or the commission, as appropriate, shall apply for and actively pursue federal approval for the affordable assisted living facility program by modifying existing community-based programs in the state Medicaid plan. The executive commissioner of the commission has the final authority to 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 program.

(e) Not later than December 31 of each year, the department and the commission shall collaborate to submit a report to the legislature regarding the implementation and effectiveness of the program. The report must include an assessment of any cost savings of the program and recommendations for expanding or modifying the program. The reporting requirement imposed by this subsection terminates at the end of any 10-year period in which no affordable assisted living facility completed under the program is opened for occupancy, regardless of whether any such facilities are opened after that 10-year period has elapsed.

(f) 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 affordable assisted living facilities.

SECTION 3. The change in law made by this Act in amending Section 2306.6710(b), Government Code, applies only to the allocation of low income housing tax credits for an application cycle that begins on or after January 1, 2015. The allocation of low income housing tax credits for an application cycle that begins before January 1, 2015, 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, Government Code, as added by this Act, in conjunction with the qualified allocation plan created for the 2015 application cycle, and the department during that cycle shall begin accepting applications for low income housing tax credits for the development of 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, 2013.

(b) Section 2306.6739(e), Government Code, as added by this Act, takes effect January 1, 2017.