88R9309 JG-D
 
  By: Springer S.B. No. 1925
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the allocation of low income housing tax credits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.67022, Government Code, is amended
  to read as follows:
         Sec. 2306.67022.  QUALIFIED ALLOCATION PLAN; MANUAL. (a)
  At least biennially, the board shall adopt a qualified allocation
  plan and a corresponding manual to provide information regarding
  the administration of and eligibility for the low income housing
  tax credit program. The board may adopt the plan and manual
  annually, as considered appropriate by the board.
         (b)  The department may not adopt a qualified allocation plan
  that:
               (1)  requires as part of the threshold criteria that an
  applicant agree to, in a land use restriction agreement or
  otherwise, an affordability period for a proposed development that
  is greater than the federal minimum affordability period; or
               (2)  uses a scoring system that awards points to an
  application based on whether an applicant agrees to, in a land use
  restriction agreement or otherwise, an affordability period for a
  proposed development that is greater than the federal minimum
  affordability period.
         (c)  For purposes of Subsection (b), "federal minimum
  affordability period" means the period beginning on the first day
  of the compliance period, as defined by Section 42(i)(1), Internal
  Revenue Code of 1986 (26 U.S.C. Section 42(i)(1)), and ending 15
  years from the date on which the compliance period ends.
         SECTION 2.  Section 2306.6711(b), Government Code, is
  amended to read as follows:
         (b)  Not later than the deadline specified in the qualified
  allocation plan, the board shall issue commitments for available
  housing tax credits based on the application evaluation process
  provided by Section 2306.6710. The board may not allocate to an
  applicant housing tax credits in any unnecessary amount, as
  determined by the department's underwriting policy and by federal
  law, and in any event may not allocate to the applicant housing tax
  credits in an amount greater than $6 [$3] million in a single
  application round or to an individual development more than $2
  million in a single application round.
         SECTION 3.  Section 2306.6724, Government Code, is amended
  by adding Subsection (g) to read as follows:
         (g)  Notwithstanding other law, the department shall issue a
  final commitment for an allocation of housing tax credits not later
  than the 90th day following the date on which the department first
  receives from an applicant an Internal Revenue Service Form 8609,
  or that form's successor, for the purpose of obtaining a low-income
  housing credit allocation and certification.
         SECTION 4.  Section 2306.1112, Government Code, is repealed.
         SECTION 5.  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. 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 6.  This Act takes effect September 1, 2023.