| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the requirements for an application for a low income |
|
|
housing tax credit allocation from the nonprofit set-aside. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2306.6706(a), Government Code, is |
|
|
amended to read as follows: |
|
|
(a) In addition to the information required by Section |
|
|
2306.6705, an application for a housing tax credit allocation from |
|
|
the nonprofit set-aside, as defined by Section 42(h)(5), Internal |
|
|
Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), must contain the |
|
|
following written, detailed information with respect to each |
|
|
development owner and each general partner of a development owner: |
|
|
(1) Internal Revenue Service documentation of |
|
|
designation as a Section 501(c)(3) or 501(c)(4) organization; |
|
|
(2) evidence that one of the exempt purposes of the |
|
|
nonprofit organization is to provide low income housing; |
|
|
(3) a description of the nonprofit organization's |
|
|
participation in the construction or rehabilitation of the |
|
|
development and in the ongoing operations of the development; |
|
|
(4) evidence that the nonprofit organization |
|
|
prohibits a member of its board of directors, other than a chief |
|
|
staff member serving concurrently as a member of the board, from |
|
|
receiving material compensation for service on the board; |
|
|
(5) a third-party legal opinion stating that the |
|
|
nonprofit organization is not affiliated with or controlled by a |
|
|
for-profit organization and the basis for that opinion; |
|
|
(6) a copy of the nonprofit organization's most recent |
|
|
audited financial statement; |
|
|
(7) a list of the names [and home addresses] of members |
|
|
of the board of directors of the nonprofit organization; and |
|
|
(8) a third-party legal opinion stating that the |
|
|
nonprofit organization is eligible under Subsection (b) for a |
|
|
housing tax credit allocation from the nonprofit set-aside and the |
|
|
basis for that opinion[; and |
|
|
[(9) evidence that a majority of the members of the |
|
|
nonprofit organization's board of directors principally reside: |
|
|
[(A) in this state, if the development is located |
|
|
in a rural area; or |
|
|
[(B) not more than 90 miles from the development |
|
|
in the community in which the development is located, if the |
|
|
development is not located in a rural area]. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to an application for low income housing tax credits that is |
|
|
submitted to the Texas Department of Housing and Community Affairs |
|
|
during an application cycle that is based on the 2022 qualified |
|
|
allocation plan or a subsequent plan adopted by the governing board |
|
|
of the department under Section 2306.67022, Government Code. 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. This Act takes effect September 1, 2021. |