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A BILL TO BE ENTITLED
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AN ACT
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relating to the system by which an application for a low income |
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housing tax credit is scored. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2306.6710(b) and (f), Government Code, |
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are amended to read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of a resolution |
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concerning the development that is voted on and adopted by the |
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following, as applicable: |
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(i) the governing body of a municipality in |
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which the proposed development site is to be located; |
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(ii) subject to Subparagraph (iii), the |
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commissioners court of a county in which the proposed development |
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site is to be located, if the proposed site is to be located in an |
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area of a county that is not part of a municipality; or |
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(iii) the commissioners court of a county |
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in which the proposed development site is to be located and the |
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governing body of the applicable municipality, if the proposed site |
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is to be located in the extraterritorial jurisdiction of a |
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municipality; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) [the commitment of development funding by
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local political subdivisions;
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[(F)] the rent levels of the units; |
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(F) [(G)] the cost of the development by square |
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foot; |
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(G) [(H)] the services to be provided to tenants |
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of the development; |
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(H) [(I)] whether, at the time the complete |
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application is submitted or at any time within the two-year period |
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preceding the date of submission, the proposed development site is |
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located in an area declared to be a disaster under Section 418.014; |
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(I) [(J)] quantifiable community participation |
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with respect to the development, evaluated on the basis of written |
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statements from any neighborhood organizations on record with the |
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state or county in which the development is to be located and whose |
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boundaries contain the proposed development site; and |
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(J) [(K)] the level of community support for the |
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application, evaluated on the basis of a written statement from the |
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state representative who represents the district containing the |
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proposed development site; |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement; and |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested. |
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(f) In evaluating the level of community support for an |
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application under Subsection (b)(1)(J) [(b)(1)(K)], the department |
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shall award: |
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(1) positive points for positive written statements |
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received; |
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(2) negative points for negative written statements |
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received; and |
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(3) zero points for neutral statements received. |
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SECTION 2. Section 2306.6725, Government Code, is amended |
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by amending Subsection (a) and adding Subsections (e) and (f) to |
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read as follows: |
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(a) In allocating low income housing tax credits, the |
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department shall score each application using a point system based |
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on criteria adopted by the department that are consistent with the |
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department's housing goals, including criteria addressing the |
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ability of the proposed project to: |
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(1) provide quality social support services to |
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residents; |
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(2) demonstrate community and neighborhood support as |
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defined by the qualified allocation plan; |
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(3) consistent with sound underwriting practices and |
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when economically feasible, serve individuals and families of |
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extremely low income by leveraging private and state and federal |
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resources, including federal HOPE VI grants received through the |
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United States Department of Housing and Urban Development; |
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(4) serve traditionally underserved areas; |
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(5) demonstrate support from local political |
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subdivisions based on the subdivisions' commitment of development |
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funding; |
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(6) remain affordable to qualified tenants for an |
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extended, economically feasible period; and |
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(7) [(6)] comply with the accessibility standards |
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that are required under Section 504, Rehabilitation Act of 1973 (29 |
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U.S.C. Section 794), and specified under 24 C.F.R. Part 8, Subpart |
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C. |
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(e) In establishing the scoring criterion in the 2016 and |
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2017 qualified allocation plans related to the commitment of |
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development funding by local political subdivisions, the |
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department shall significantly reduce for each place regardless of |
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population the amount in funding per low income unit required for a |
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proposed project to receive the applicable number of points for |
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that criterion. After the reduction, the amount of required |
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funding may be a de minimis amount. |
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(f) Subsection (e) and this subsection expire September 1, |
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2019. |
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SECTION 3. Section 2306.004(4-a), Government Code, is |
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repealed. |
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SECTION 4. The change in law made by this Act applies only |
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to an application for low income housing tax credits that is |
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submitted to the Texas Department of Housing and Community Affairs |
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during an application cycle that begins on or after the effective |
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date of this Act. An application that is submitted during an |
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application cycle that began before the effective date of this Act |
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is governed by the law in effect at the time the application cycle |
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began, and the former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |
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