BILL ANALYSIS

H.B. 2856

By: Swanson

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under the low income housing tax credit program administered by the Texas Department of Housing and Community Affairs (TDHCA), state representatives are empowered to give input on applications submitted for competitive housing tax credits that affects the applicant's scores on a qualified allocation plan. However, state representatives are not able to provide this input on an application for non-competitive housing tax credits financed through the private activity bond program. Concerns have been raised that this lack of input results in residents of unincorporated areas of the state having less input regarding the award of non-competitive housing tax credits than they have regarding the award of competitive housing tax credits. H.B. 2856 seeks to address these concerns by providing for state representatives to register opposition to and halt the approval of non-competitive housing tax credit applications submitted to TDHCA.

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 rulemaking authority is expressly granted to the Texas Department of Housing and Community Affairs in SECTION 2 of this bill.

ANALYSIS

H.B. 2856 amends the Government Code to require an applicant for low income housing tax credits financed through the private activity bond program, before submitting the application to the Texas Department of Housing and Community Affairs (TDHCA), to provide notice of the intent to file the application to the state representative who represents the district containing the proposed development site. The bill prohibits the governing board of TDHCA from approving such an application if the state representative submits to TDHCA a letter opposing the development, regardless of whether the applicant has submitted to TDHCA a certified copy of a resolution from each applicable governing body certifying that the governing body does not object to the proposed application. The bill authorizes TDHCA by rule to provide for the time and manner of the submission of an opposition letter.

H.B. 2856 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 2024 qualified allocation plan or a subsequent plan adopted by the governing board of TDHCA.

EFFECTIVE DATE

September 1, 2023.