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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance by the Texas Department of Housing and |
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Community Affairs of certain federal forms for purposes of |
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allocating low income housing tax credits; authorizing an |
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administrative penalty. |
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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 2306.67101 to read as follows: |
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Sec. 2306.67101. ISSUANCE OF INTERNAL REVENUE SERVICE FORM |
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8609; REPORT. (a) In this section: |
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(1) "Documentation packet" means the Internal Revenue |
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Service Form 8609 documentation packet required to receive an |
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allocation of housing tax credits under this subchapter. |
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(2) "Form 8609" means Internal Revenue Service Form |
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8609, or that form's successor. |
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(b) Not later than the 120th day after the date a |
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development owner submits to the department an Internal Revenue |
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Service Form 8609 documentation packet under this section, the |
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department shall issue the owner an Internal Revenue Service Form |
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8609. |
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(c) A documentation packet must consist of only: |
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(1) an owner's statement of certification form: |
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(A) that is signed by the development owner and |
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notarized; and |
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(B) through which the development owner |
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certifies the accuracy of the information included in the |
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documentation packet; |
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(2) an owner's summary form that includes: |
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(A) the taxpayer identification number of the |
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development owner; and |
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(B) information on the ownership structure of the |
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development owner, the developer, or the development guarantor; |
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(3) a development cost schedule for the development; |
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(4) an independent auditor's report of the total |
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development cost and eligible basis of the development through |
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which the auditor certifies that the audit was conducted according |
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to generally accepted auditing standards and included: |
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(A) an examination of evidence supporting the |
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amounts and disclosures outlined in the cost certification; |
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(B) an assessment of the accounting principles |
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used and significant estimates made by the development owner; and |
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(C) an overall cost certification evaluation and |
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establishment of the total eligible basis; |
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(5) an independent auditor's report of bond financing |
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through which the auditor certifies the percentage of the |
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development's aggregate basis financed by tax-exempt bonds; |
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(6) a complete copy of the executed carryover |
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allocation agreement issued to the development owner by the |
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department; |
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(7) for a development that was awarded points for |
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demonstrating nonprofit participation under the sponsor |
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characteristics of the application, documentation evidencing the |
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nonprofit participation; |
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(8) a placement in service form that contains |
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summarized information for the development on a |
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building-by-building basis; |
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(9) an architect certification or substantial |
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completion form and permission to occupy form: |
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(A) that are completed and signed by the |
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development architect; and |
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(B) through which the development architect |
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certifies, for purposes of calculating the development's placed in |
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service date, the date of: |
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(i) the completion of the development's |
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buildings; and |
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(ii) the issuance of the certificate of |
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occupancy for the development; |
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(10) a complete copy of the executed and recorded land |
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use restriction agreement for the development; |
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(11) a projected operating pro forma to include a rent |
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schedule and annual operating expenses; and |
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(12) a summary of the sources and uses of funds for the |
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development. |
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(d) The form and contents of the documentation required |
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under Subsections (c)(1), (2), (3), (4), (5), (8), and (9) must be |
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the same as those prescribed by the department for the application |
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cycle that is based on the 2022 qualified allocation plan. |
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(e) If the department determines that a development owner |
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intentionally provided incorrect or inconsistent information in a |
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documentation packet submitted to the department under this |
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section, the department may assess an administrative penalty |
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against the owner in accordance with Subchapter B. In assessing an |
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administrative penalty under this subsection, the department may: |
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(1) impose a monetary penalty; or |
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(2) prohibit the owner or any person that has an |
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ownership interest in the development, except for a tax credit |
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purchaser or syndicator, from participating in the low income |
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housing tax credit program for a period of not more than two years. |
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(f) The department shall quarterly prepare and submit to the |
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legislature a written report that includes the following |
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information for the preceding quarter: |
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(1) the total number of submitted documentation |
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packets that the department is in the course of processing; |
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(2) the total number of Forms 8609 that the department |
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issued, aggregated by the total number issued: |
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(A) not later than the 120th day after the date a |
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documentation packet was submitted; |
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(B) on or after the 121st day but before the 151st |
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day after the date a documentation packet was submitted; |
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(C) on or after the 151st day but before the 181st |
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day after the date a documentation packet was submitted; and |
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(D) on or after the 181st day after the date a |
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documentation packet was submitted; |
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(3) a detailed statement of the reasons for the |
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department's delay in issuing Form 8609 in the time required by |
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Subsection (b), including complete copies of any requests for |
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information; |
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(4) the average time the department required for |
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issuing Form 8609; |
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(5) the total number of rejected applications for Form |
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8609; and |
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(6) a detailed statement of the reason for the |
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department's rejection of each application. |
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(g) The department shall adopt rules to implement this |
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section, including rules specifying the manner, deadline, and fees |
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for submitting a documentation packet under this section. |
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SECTION 2. The changes in law made by this Act apply only to |
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an application for low income housing tax credits that is submitted |
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to the Texas Department of Housing and Community Affairs during an |
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application cycle that is based on the 2023 qualified allocation |
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plan or a subsequent plan adopted by the governing board of the |
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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, 2023. |