| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the evaluation of applications for certain financial |
|
|
assistance administered by the Texas Department of Housing and |
|
|
Community Affairs. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2306.359(a), Government Code, is amended |
|
|
to read as follows: |
|
|
(a) In evaluating an application for an issuance of private |
|
|
activity bonds, the department shall score and rank the application |
|
|
using a point system based on criteria that are adopted by the |
|
|
department, including criteria regarding: |
|
|
(1) the income levels of tenants of the development, |
|
|
consistent with the funding priorities provided by Section |
|
|
1372.0321; |
|
|
(2) the rent levels of the units; |
|
|
(3) the level of community support for the |
|
|
application; |
|
|
(4) the period of guaranteed affordability for low |
|
|
income tenants; |
|
|
(5) the cost per unit of the development; |
|
|
(6) the size, quality, and amenities of the units; |
|
|
(7) the services to be provided to tenants of the |
|
|
development; [and] |
|
|
(8) whether, at the time the complete application is |
|
|
submitted, all units that are: |
|
|
(A) owned by the applicant are equipped with air |
|
|
conditioning; and |
|
|
(B) owned or operated by a housing authority or |
|
|
other governmental entity, from which the applicant receives |
|
|
financial assistance or with which the applicant participates in |
|
|
projects for the development of affordable housing, are equipped |
|
|
with air conditioning; and |
|
|
(9) other criteria as developed by the board. |
|
|
SECTION 2. Section 2306.6710, Government Code, is amended |
|
|
by amending Subsection (b) and adding Subsections (h) and (i) to |
|
|
read as follows: |
|
|
(b) If an application satisfies the threshold criteria, the |
|
|
department shall score and rank the application using a point |
|
|
system that: |
|
|
(1) prioritizes in descending order criteria |
|
|
regarding: |
|
|
(A) financial feasibility of the development |
|
|
based on the supporting financial data required in the application |
|
|
that will include a project underwriting pro forma from the |
|
|
permanent or construction lender; |
|
|
(B) quantifiable community participation with |
|
|
respect to the development, evaluated on the basis of a resolution |
|
|
concerning the development that is voted on and adopted by the |
|
|
following, as applicable: |
|
|
(i) the governing body of a municipality in |
|
|
which the proposed development site is to be located; |
|
|
(ii) subject to Subparagraph (iii), the |
|
|
commissioners court of a county in which the proposed development |
|
|
site is to be located, if the proposed site is to be located in an |
|
|
area of a county that is not part of a municipality; or |
|
|
(iii) the commissioners court of a county |
|
|
in which the proposed development site is to be located and the |
|
|
governing body of the applicable municipality, if the proposed site |
|
|
is to be located in the extraterritorial jurisdiction of a |
|
|
municipality; |
|
|
(C) the income levels of tenants of the |
|
|
development; |
|
|
(D) the size and quality of the units; |
|
|
(E) the rent levels of the units; |
|
|
(F) the cost of the development by square foot; |
|
|
(G) the services to be provided to tenants of the |
|
|
development; |
|
|
(H) whether, at the time the complete application |
|
|
is submitted or at any time within the two-year period preceding the |
|
|
date of submission, the proposed development site is located in an |
|
|
area declared to be a disaster under Section 418.014; |
|
|
(I) quantifiable community participation with |
|
|
respect to the development, evaluated on the basis of written |
|
|
statements from any neighborhood organizations on record with the |
|
|
state or county in which the development is to be located and whose |
|
|
boundaries contain the proposed development site; [and] |
|
|
(J) the level of community support for the |
|
|
application, evaluated on the basis of a written statement from the |
|
|
state representative who represents the district containing the |
|
|
proposed development site; and |
|
|
(K) whether, at the time the complete application |
|
|
is submitted, all units that are: |
|
|
(i) owned by the applicant are equipped |
|
|
with air conditioning; and |
|
|
(ii) owned or operated by a housing |
|
|
authority or other governmental entity, from which the applicant |
|
|
receives financial assistance or with which the applicant |
|
|
participates in projects for the development of affordable housing, |
|
|
are equipped with air conditioning; |
|
|
(2) uses criteria imposing penalties on applicants or |
|
|
affiliates who have requested extensions of department deadlines |
|
|
relating to developments supported by housing tax credit |
|
|
allocations made in the application round preceding the current |
|
|
round or a developer or principal of the applicant that has been |
|
|
removed by the lender, equity provider, or limited partners for its |
|
|
failure to perform its obligations under the loan documents or |
|
|
limited partnership agreement; |
|
|
(3) encourages applicants to provide free notary |
|
|
public service to the residents of the developments for which the |
|
|
allocation of housing tax credits is requested; and |
|
|
(4) for an application concerning a development that |
|
|
is or will be located in a county with a population of 1 million or |
|
|
more but less than 4 million and that is or will be located not more |
|
|
than two miles from a veterans hospital, veterans affairs medical |
|
|
center, or veterans affairs health care center, encourages |
|
|
applicants to provide a preference for leasing units in the |
|
|
development to low income veterans. |
|
|
(h) If an applicant requests in writing a statement of |
|
|
support under Subsection (b)(1)(J) from the state representative |
|
|
who represents the district containing the proposed development |
|
|
site, the request from the applicant must include information |
|
|
disclosing the percentage of units owned or operated as described |
|
|
by Subsection (b)(1)(K) that are equipped with air conditioning. |
|
|
(i) In assigning points to an application under Subsection |
|
|
(b)(1)(K), the department shall award negative points if any of the |
|
|
units that are owned or operated as described by that paragraph are |
|
|
not equipped with air conditioning. |
|
|
SECTION 3. 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 2024 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 4. This Act takes effect September 1, 2023. |