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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain at-risk developments to |
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receive low income housing tax credits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.6702(a)(5), Government Code, is |
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amended to read as follows: |
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(5) "At-risk development" means: |
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(A) a development that: |
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(i) has received the benefit of a subsidy in |
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the form of a below-market interest rate loan, interest rate |
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reduction, rental subsidy, Section 8 housing assistance payment, |
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rental supplement payment, rental assistance payment, or equity |
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incentive under the following federal laws, as applicable: |
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(a) Sections 221(d)(3) and (5), |
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National Housing Act (12 U.S.C. Section 1715l); |
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(b) Section 236, National Housing Act |
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(12 U.S.C. Section 1715z-1); |
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(c) Section 202, Housing Act of 1959 |
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(12 U.S.C. Section 1701q); |
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(d) Section 101, Housing and Urban |
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Development Act of 1965 (12 U.S.C. Section 1701s); |
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(e) the Section 8 Additional |
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Assistance Program for housing developments with HUD-Insured and |
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HUD-Held Mortgages administered by the United States Department of |
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Housing and Urban Development as specified by 24 C.F.R. Part 886, |
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Subpart A; |
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(f) the Section 8 Housing Assistance |
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Program for the Disposition of HUD-Owned Projects administered by |
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the United States Department of Housing and Urban Development as |
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specified by 24 C.F.R. Part 886, Subpart C; |
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(g) the Section 8 Housing Assistance |
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Payments Program for New Construction administered by the United |
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States Department of Housing and Urban Development as specified by |
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24 C.F.R. Part 880; |
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(h) the Section 8 Housing Assistance |
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Payments Program for Substantial Rehabilitation administered by |
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the United States Department of Housing and Urban Development as |
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specified by 24 C.F.R. Part 881; |
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(i) Sections 514, 515, and 516, |
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Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or |
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(j) [(h)] Section 42, Internal |
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Revenue Code of 1986; and |
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(ii) is subject to the following |
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conditions: |
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(a) the stipulation to maintain |
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affordability in the contract granting the subsidy is nearing |
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expiration; or |
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(b) the HUD-insured or HUD-held |
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mortgage on the development is eligible for prepayment or is |
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nearing the end of its term; or |
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(B) a development that proposes to rehabilitate |
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or reconstruct housing units that: |
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(i) receive assistance under Section 9, |
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United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are |
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owned by: |
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(a) a public housing authority; or |
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(b) a public facility corporation |
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created by a public housing authority under Chapter 303, Local |
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Government Code; |
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(ii) received assistance under Section 9, |
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United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: |
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(a) are proposed to be disposed of or |
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demolished by a public housing authority or a public facility |
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corporation created by a public housing authority under Chapter |
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303, Local Government Code; or |
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(b) have been disposed of or |
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demolished by a public housing authority or a public facility |
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corporation created by a public housing authority under Chapter |
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303, Local Government Code, in the two-year period preceding the |
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application for housing tax credits; or |
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(iii) receive assistance or will receive |
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assistance through the Rental Assistance Demonstration program |
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administered by the United States Department of Housing and Urban |
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Development as specified by the Consolidated and Further Continuing |
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Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent |
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amendments, if the application for assistance through the Rental |
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Assistance Demonstration program is included in the applicable |
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public housing plan that was most recently approved by the United |
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States Department of Housing and Urban Development as specified by |
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24 C.F.R. Section 903.23. |
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SECTION 2. Section 2306.6702, Government Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) For purposes of Subsection (a)(5), a development |
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described by that subdivision is considered an at-risk development |
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under this subchapter regardless of whether: |
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(1) the development proposes to newly construct |
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housing units or rehabilitate or reconstruct housing units at the |
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same location of any of the original development sites; or |
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(2) the development proposes to wholly construct or |
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reconstruct housing units at a location other than the location of |
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any of the original development sites and the development: |
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(A) qualifies for points on the opportunity index |
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under department rule; or |
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(B) is supported by the applicable governing body |
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of the municipality or county in which the development is located, |
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as evidenced by a resolution adopted by the governing body. |
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SECTION 3. 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 2024 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 4. This Act takes effect September 1, 2023. |