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AN ACT
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relating to low income housing tax credits awarded to at-risk |
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developments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6702(a)(5), Government Code, is |
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amended to read as follows: |
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(5) "At-risk development" means: |
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(A) a development that: |
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(i) [(A)] has received the benefit of a |
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subsidy in the form of a below-market interest rate loan, interest |
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rate reduction, rental subsidy, Section 8 housing assistance |
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payment, rental supplement payment, rental assistance payment, or |
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equity incentive under the following federal laws, as applicable: |
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(a) [(i)] Sections 221(d)(3) and (5), |
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National Housing Act (12 U.S.C. Section 1715l); |
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(b) [(ii)] Section 236, National |
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Housing Act (12 U.S.C. Section 1715z-1); |
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(c) [(iii)] Section 202, Housing Act |
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of 1959 (12 U.S.C. Section 1701q); |
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(d) [(iv)] Section 101, Housing and |
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Urban Development Act of 1965 (12 U.S.C. Section 1701s); |
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(e) [(v)] the Section 8 Additional |
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Assistance Program for housing developments with HUD-Insured and |
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HUD-Held Mortgages administered by the United States Department of |
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Housing and Urban Development as specified by 24 C.F.R. Part 886, |
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Subpart A; |
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(f) [(vi)] the Section 8 Housing |
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Assistance Program for the Disposition of HUD-Owned Projects |
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administered by the United States Department of Housing and Urban |
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Development as specified by 24 C.F.R. Part 886, Subpart C; |
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(g) [(vii)] Sections 514, 515, and |
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516, Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); |
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or |
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(h) [(viii)] Section 42, Internal |
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Revenue Code of 1986 (26 U.S.C. Section 42); and |
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(ii) [(B)] is subject to the following |
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conditions: |
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(a) [(i)] the stipulation to maintain |
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affordability in the contract granting the subsidy is nearing |
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expiration; or |
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(b) [(ii)] the federally insured |
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mortgage on the development is eligible for prepayment or is |
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nearing the end of its term; or |
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(B) a development that proposes to rehabilitate |
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or reconstruct housing units that: |
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(i) are owned by a public housing authority |
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and receive assistance under Section 9, United States Housing Act |
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of 1937 (42 U.S.C. Section 1437g); or |
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(ii) received assistance under Section 9, |
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United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: |
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(a) are proposed to be disposed of or |
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demolished by a public housing authority; or |
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(b) have been disposed of or |
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demolished by a public housing authority in the two-year period |
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preceding the application for housing tax credits. |
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SECTION 2. Section 2306.6714, Government Code, is amended |
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by amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) The department shall set aside for eligible at-risk |
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developments not less than 15 percent of the housing tax credits |
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available for allocation in the calendar year. |
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(a-1) An at-risk development described by Section |
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2306.6702(a)(5)(B) is eligible for housing tax credits set aside |
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under Subsection (a) if: |
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(1) a portion of the public housing operating subsidy |
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received from the department is retained for the development; and |
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(2) a portion of the units of the development are |
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reserved for public housing as specified in the qualified housing |
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plan. |
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SECTION 3. The changes in law made by this Act apply only to |
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an application for low income housing tax credits that is submitted |
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on or after the effective date of this Act. An application for low |
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income housing tax credits that is submitted before the effective |
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date of this Act is governed by the law in effect when the |
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application was submitted, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1888 was passed by the House on May 2, |
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2013, by the following vote: Yeas 139, Nays 8, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1888 on May 22, 2013, by the following vote: Yeas 77, Nays 51, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1888 was passed by the Senate, with |
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amendments, on May 20, 2013, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |