| |
|
|
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 as specified by 24 C.F.R. Part 886, |
|
|
Subpart A; |
|
|
(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 as specified by 24 C.F.R. Part 886, Subpart C; |
|
|
(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, United States Housing Act |
|
|
of 1937 (42 U.S.C. Section 1437g); or |
|
|
(ii) received assistance under Section 9, |
|
|
United States Housing Act of 1937 (42 U.S.C. Section 1437g) 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 described by Section |
|
|
2306.6702(a)(5)(B) 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. |
|
|
|
|
|
* * * * * |