Amend CSHB 21 (house committee report) as follows:
(1) On page 1, strike lines 6 through 17 and substitute the following:
Sec. 394.004. APPLICATION OF CHAPTER TO CERTAIN RESIDENTIAL DEVELOPMENTS. This chapter applies only to a residential development at least 90 percent of which is for use by or is intended to be occupied by households [persons] of low and moderate income whose adjusted gross income [, together with the adjusted gross income of all persons who intend to reside with those persons in one dwelling unit,] did not for the preceding tax year exceed the maximum amount constituting moderate income as defined under the housing finance corporation's rules, resolutions relating to the issuance of bonds, or financing documents relating to the issuance of bonds.
(2) On page 5, strike lines 14 through 17 and substitute the following:
housing finance corporation if:
(1) at least 50 percent of the units in the multifamily residential development are reserved for occupancy by individuals and families earning less than 80 percent of the area median family income; or
(2) the units in the multifamily residential development are reserved in the manner provided by Section 394.9026(c)(1).
(3) On page 6, between lines 19 and 20, insert the following new subdivision and renumber subsequent subdivisions accordingly:
(4) "Maximum market rent" means, with respect to a particular income-restricted unit, the average annual rent charged for all non-income-restricted units in the development having the same or substantially similar floor plan as the income-restricted unit.
(4) On page 7, line 16, strike "rate".
(5) On page 8, line 20, strike "third" and substitute "first".
(6) On page 8, lines 25 and 26, strike "the development first achieves an occupancy rate of 90 percent" and substitute "construction first begins on the development".
(7) On page 9, strike lines 3 through 7 and substitute the following:
finance corporation user paid to each taxing unit authorized to impose ad valorem taxes on the applicable property for the applicable tax year an amount equal to that taxing unit's pro rata share of the rent reduction shortfall that exists based on the difference between the minimum rent reduction amount described by Paragraph (A) and the amount of actual rent reduction at the development in the preceding tax year;
(8) On page 12, lines 23 and 24, strike "Subsection (c)" each time it appears and substitute "Subsections (c)(1), (3), (4), and (5)" in each instance.
(9) On page 21, strike lines 22 through 27 and substitute the following:
Act is not eligible for an exemption under Section 394.905, Local Government Code, as amended by this Act, unless the housing finance corporation that owns the development and any housing finance corporation user, as defined by Section 394.9026, Local Government Code, as added by this Act, associated with the development come into compliance:
(1) not later than January 1, 2026, with Sections 394.9026(c)(6), (7), (8), and (9), Local Government Code, as added by this Act; and
(2) with Sections 394.9026(c)(1), (2), (3), (4), and (5), Local Government Code, as added by this Act, not later than the earlier of:
(A) the end of the 10th tax year following the effective date of this Act; or
(B) the end of the first tax year following a tax year in which:
(i) existing mortgage indebtedness of the development is refinanced;
(ii) title to the development is conveyed; or
(iii) a sale, conveyance, transfer or assignment, or series of sales, conveyances, transfers or assignments, results in a change in a majority of the beneficial ownership interests of any housing finance corporation user associated with the development.