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A BILL TO BE ENTITLED
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AN ACT
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relating to the evaluation of applications for certain financial |
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assistance administered by the Texas Department of Housing and |
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Community Affairs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2306.359(a), Government Code, is amended |
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to read as follows: |
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(a) In evaluating an application for an issuance of private |
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activity bonds, the department shall score and rank the application |
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using a point system based on criteria that are adopted by the |
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department, including criteria regarding: |
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(1) the income levels of tenants of the development, |
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consistent with the funding priorities provided by Section |
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1372.0321; |
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(2) the rent levels of the units; |
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(3) the level of community support for the |
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application; |
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(4) the period of guaranteed affordability for low |
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income tenants; |
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(5) the cost per unit of the development; |
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(6) the size, quality, and amenities of the units; |
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(7) the services to be provided to tenants of the |
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development; [and] |
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(8) whether, at the time the complete application is |
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submitted, all units that are: |
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(A) owned by the applicant are equipped with air |
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conditioning; and |
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(B) owned or operated by a housing authority or |
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other governmental entity, from which the applicant receives |
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financial assistance or with which the applicant participates in |
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projects for the development of affordable housing, are equipped |
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with air conditioning; and |
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(9) other criteria as developed by the board. |
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SECTION 2. Section 2306.6710, Government Code, is amended |
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by amending Subsection (b) and adding Subsections (h) and (i) to |
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read as follows: |
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(b) If an application satisfies the threshold criteria, the |
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department shall score and rank the application using a point |
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system that: |
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(1) prioritizes in descending order criteria |
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regarding: |
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(A) financial feasibility of the development |
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based on the supporting financial data required in the application |
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that will include a project underwriting pro forma from the |
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permanent or construction lender; |
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(B) quantifiable community participation with |
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respect to the development, evaluated on the basis of a resolution |
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concerning the development that is voted on and adopted by the |
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following, as applicable: |
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(i) the governing body of a municipality in |
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which the proposed development site is to be located; |
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(ii) subject to Subparagraph (iii), the |
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commissioners court of a county in which the proposed development |
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site is to be located, if the proposed site is to be located in an |
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area of a county that is not part of a municipality; or |
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(iii) the commissioners court of a county |
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in which the proposed development site is to be located and the |
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governing body of the applicable municipality, if the proposed site |
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is to be located in the extraterritorial jurisdiction of a |
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municipality; |
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(C) the income levels of tenants of the |
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development; |
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(D) the size and quality of the units; |
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(E) the rent levels of the units; |
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(F) the cost of the development by square foot; |
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(G) the services to be provided to tenants of the |
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development; |
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(H) whether, at the time the complete application |
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is submitted or at any time within the two-year period preceding the |
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date of submission, the proposed development site is located in an |
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area declared to be a disaster under Section 418.014; |
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(I) quantifiable community participation with |
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respect to the development, evaluated on the basis of written |
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statements from any neighborhood organizations on record with the |
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state or county in which the development is to be located and whose |
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boundaries contain the proposed development site; [and] |
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(J) the level of community support for the |
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application, evaluated on the basis of a written statement from the |
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state representative who represents the district containing the |
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proposed development site; and |
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(K) whether, at the time the complete application |
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is submitted, all units that are: |
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(i) owned by the applicant are equipped |
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with air conditioning; and |
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(ii) owned or operated by a housing |
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authority or other governmental entity, from which the applicant |
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receives financial assistance or with which the applicant |
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participates in projects for the development of affordable housing, |
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are equipped with air conditioning; |
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(2) uses criteria imposing penalties on applicants or |
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affiliates who have requested extensions of department deadlines |
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relating to developments supported by housing tax credit |
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allocations made in the application round preceding the current |
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round or a developer or principal of the applicant that has been |
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removed by the lender, equity provider, or limited partners for its |
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failure to perform its obligations under the loan documents or |
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limited partnership agreement; |
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(3) encourages applicants to provide free notary |
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public service to the residents of the developments for which the |
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allocation of housing tax credits is requested; and |
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(4) for an application concerning a development that |
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is or will be located in a county with a population of 1.2 million or |
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more but less than 4 million and that is or will be located not more |
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than two miles from a veterans hospital, veterans affairs medical |
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center, or veterans affairs health care center, encourages |
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applicants to provide a preference for leasing units in the |
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development to low income veterans. |
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(h) If an applicant requests in writing a statement of |
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support under Subsection (b)(1)(J) from the state representative |
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who represents the district containing the proposed development |
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site, the request from the applicant must include information |
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disclosing the percentage of units owned or operated as described |
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by Subsection (b)(1)(K) that are equipped with air conditioning. |
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(i) In assigning points to an application under Subsection |
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(b)(1)(K), the department shall award negative points if any of the |
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units that are owned or operated as described by that paragraph are |
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not equipped with air conditioning. |
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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 2026 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, 2025. |