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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the allocation of low income housing tax |
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credits to certain applicants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter DD, Chapter 2306, Government Code, is |
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amended by adding Section 2306.67031 to read as follows: |
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Sec. 2306.67031. RESTRICTION ON ALLOCATION OF HOUSING TAX |
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CREDITS TO CERTAIN DEVELOPMENTS. (a) In this section: |
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(1) "Extended use period" has the meaning assigned by |
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Section 42(h)(6)(D), Internal Revenue Code of 1986. |
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(2) "Qualified contract" has the meaning assigned by |
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Section 42(h)(6)(F), Internal Revenue Code of 1986. |
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(b) The department may not allocate housing tax credits to a |
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development proposed by an applicant who owns one or more existing |
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developments supported by housing tax credits under this subchapter |
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unless the applicant agrees, as part of any conditions imposed by |
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the department in connection with the allocation of housing tax |
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credits for the proposed development, to waive the applicant's |
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right to sell any existing developments through the use of a |
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qualified contract during the extended use period. |
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SECTION 2. 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 is based on the 2020 qualified |
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allocation plan or a subsequent plan adopted by the governing board |
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of the department under Section 2306.67022, Government Code. An |
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application that is submitted during an application cycle that is |
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based on an earlier qualified allocation plan is governed by the law |
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in effect on the date the application cycle began, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |