BILL ANALYSIS

 

 

Senate Research Center

H.B. 1215

86R10315 JAM-F

By: Collier et al. (Alvarado)

 

Intergovernmental Relations

 

5/16/2019

 

Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Recent reports indicate that the state�s largest urban areas are rapidly growing, but the supply of affordable housing has not kept up with demand. It has been suggested that the housing tax credit program administered by the Texas Department of Housing and Community Affairs (TDHCA) could fill the gap, but the sites approved by TDHCA in recent years have been mostly located in suburban locations. While recent legislative efforts addressed this issue by instituting a two-year trial period during which educational quality was a threshold consideration in the application under the program, there is concern that the expiration of the trial period could deprive communities where housing is much needed from obtaining these tax credits. H.B. 1215 seeks to remedy this situation by including educational quality among the permanent criteria for obtaining these tax credits.

 

H.B. 1215 amends the Government Code to authorize TDHCA to require as part of the threshold criteria under a qualified allocation plan for the low income housing tax credit program that a proposed development satisfy certain criteria relating to educational quality, as specified by TDHCA in that plan. The bill prohibits TDHCA from adopting a qualified allocation plan that uses a scoring system that awards points to an application based on criteria relating to the educational quality applicable to a proposed development site. H.B. 1215 applies only to an application for low income housing tax credits that is submitted to TDHCA during an application cycle that is based on the 2020 qualified allocation plan or a subsequent plan adopted by the governing board of TDHCA.

 

H.B. 1215 amends current law relating to the allocation of low income housing tax credits.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 2306.67022, Government Code, as follows:

 

Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) Creates this subsection from existing text and makes no further changes.

 

(b) Authorizes the Texas Department of Housing and Community Affairs (TDHCA) to require as part of the threshold criteria under a qualified allocation plan that a proposed development satisfy certain criteria relating to educational quality, as specified by TDHCA in that plan.

 

(c) Prohibits TDHCA from adopting a qualified allocation plan that uses a scoring system that awards points to an application based on criteria relating to the educational quality applicable to a proposed development site.

 

SECTION 2. Provides that the change in law made by this Act applies only to an application for low income housing tax credits that is submitted to TDHCA during an application cycle that is based on the 2020 qualified allocation plan or a subsequent plan adopted by the governing board of TDHCA under Section 2306.67022, Government Code, as amended by this Act. Provides that an application that is submitted during an application cycle that is based on an earlier qualified allocation plan is governed by the law in effect on the date the application cycle began, and the former law is continued in effect for that purpose. �

 

SECTION 3. Effective date: September 1, 2019.