BILL ANALYSIS

S.B. 1315

By: Watson

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties explain that there are certain housing projects that have debt held by the U.S. Department of Housing and Urban Development (HUD) that are excluded from competing for the low-income housing tax credits set aside for at-risk developments and contend that these projects should be able to compete for those funds. S.B. 1315 seeks to address this issue.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1315 amends the Government Code to change the condition that the mortgage on a development is eligible for prepayment or nearing the end of its term from being a federally insured mortgage to being a HUD-insured or HUD-held mortgage for purposes of establishing that a development is an at-risk development with regard to the low income housing tax credit program.

EFFECTIVE DATE

September 1, 2015.