83R17554 JAM-D

By: Anchia H.B. No. 1888

Substitute the following for H.B. No. 1888:

By: Dutton C.S.H.B. No. 1888

A BILL TO BE ENTITLED

AN ACT

relating to low income housing tax credits awarded to at-risk developments.

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

SECTION 1. Section 2306.6702(a)(5), Government Code, is amended to read as follows:

(5) "At-risk development" means:

(A) a development that:

(i) [(A)] has received the benefit of a subsidy in the form of a below-market interest rate loan, interest rate reduction, rental subsidy, Section 8 housing assistance payment, rental supplement payment, rental assistance payment, or equity incentive under the following federal laws, as applicable:

(a) [(i)] Sections 221(d)(3) and (5), National Housing Act (12 U.S.C. Section 1715l);

(b) [(ii)] Section 236, National Housing Act (12 U.S.C. Section 1715z-1);

(c) [(iii)] Section 202, Housing Act of 1959 (12 U.S.C. Section 1701q);

(d) [(iv)] Section 101, Housing and Urban Development Act of 1965 (12 U.S.C. Section 1701s);

(e) [(v)] the Section 8 Additional Assistance Program for housing developments with HUD-Insured and HUD-Held Mortgages administered by the United States Department of Housing and Urban Development;

(f) [(vi)] the Section 8 Housing Assistance Program for the Disposition of HUD-Owned Projects administered by the United States Department of Housing and Urban Development;

(g) [(vii)] Sections 514, 515, and 516, Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or

(h) [(viii)] Section 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42); and

(ii) [(B)] is subject to the following conditions:

(a) [(i)] the stipulation to maintain affordability in the contract granting the subsidy is nearing expiration; or

(b) [(ii)] the federally insured mortgage on the development is eligible for prepayment or is nearing the end of its term; or

(B) a development that proposes to rehabilitate or reconstruct housing units that:

(i) are owned by a public housing authority and receive assistance under Section 9 of the National Housing Act (12 U.S.C. Section 1706d); or

(ii) received assistance under Section 9 of the National Housing Act (12 U.S.C. Section 1706d) and:

(a) are proposed to be disposed of or demolished by a public housing authority; or

(b) have been disposed of or demolished by a public housing authority in the two-year period preceding the application for housing tax credits.

SECTION 2. Section 2306.6714, Government Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a) The department shall set aside for eligible at-risk developments not less than 15 percent of the housing tax credits available for allocation in the calendar year.

(a-1) An at-risk development is eligible for housing tax credits set aside under Subsection (a) if:

(1) a portion of the public housing operating subsidy received from the department is retained for the development; and

(2) a portion of the units of the development are reserved for public housing as specified in the qualified housing plan.

SECTION 3. The changes in law made by this Act apply only to an application for low income housing tax credits that is submitted on or after the effective date of this Act. An application for low income housing tax credits that is submitted before the effective date of this Act is governed by the law in effect when the application was submitted, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2013.