BILL ANALYSIS

S.B. 493

By: Alvarado

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The City of Houston has received federal funds for housing disaster recovery resulting from Hurricane Harvey to be invested by a certain deadline. Concerns have been raised that a statutory change is needed relating to the allocation of housing tax credits so the city isn't required to stagger developments over a longer period of time, which would risk missing the deadline and lead to the possible retraction of federal funds. S.B. 493 seeks to address this issue by authorizing the governing board of the Texas Department of Housing and Community Affairs to allocate housing tax credits to more than one development in a single community under certain conditions.

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. 493 amends the Government Code to authorize the governing board of the Texas Department of Housing and Community Affairs (TDHCA) to allocate housing tax credits under the low income housing tax credit program to more than one development in a single community if:

· the community is located in a county with a population of four million or more and in an area that is a federally declared disaster area; and

· the governing body of the municipality containing the development or, if located outside a municipality, the county containing the development has by vote specifically authorized the allocation of housing tax credits for the development and is authorized to administer disaster recovery funds as a subgrant recipient.

S.B. 493 applies only to an application for low income housing tax credits that is submitted to the TDHCA during an application cycle that is based on the 2020 qualified allocation plan or a subsequent plan adopted by the TDHCA governing board.

EFFECTIVE DATE

September 1, 2019.