Bill Text: TX HB1973 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the system by which an application for a low income housing tax credit is scored.
Spectrum: Slight Partisan Bill (Republican 19-9)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB1973 Detail]
Download: Texas-2019-HB1973-Introduced.html
Bill Title: Relating to the system by which an application for a low income housing tax credit is scored.
Spectrum: Slight Partisan Bill (Republican 19-9)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB1973 Detail]
Download: Texas-2019-HB1973-Introduced.html
86R12021 JAM-D | ||
By: Button | H.B. No. 1973 |
|
||
|
||
relating to the system by which an application for a low income | ||
housing tax credit is scored. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2306.6710(b), Government Code, is | ||
amended to read as follows: | ||
(b) If an application satisfies the threshold criteria, the | ||
department shall score and rank the application using a point | ||
system that: | ||
(1) prioritizes in descending order criteria | ||
regarding: | ||
(A) financial feasibility of the development | ||
based on the supporting financial data required in the application | ||
that will include a project underwriting pro forma from the | ||
permanent or construction lender; | ||
(B) quantifiable community participation with | ||
respect to the development, evaluated on the basis of a resolution | ||
concerning the development that is voted on and adopted by the | ||
following, as applicable: | ||
(i) the governing body of a municipality in | ||
which the proposed development site is to be located; | ||
(ii) subject to Subparagraph (iii), the | ||
commissioners court of a county in which the proposed development | ||
site is to be located, if the proposed site is to be located in an | ||
area of a county that is not part of a municipality; or | ||
(iii) the commissioners court of a county | ||
in which the proposed development site is to be located and the | ||
governing body of the applicable municipality, if the proposed site | ||
is to be located in the extraterritorial jurisdiction of a | ||
municipality; | ||
(C) the income levels of tenants of the | ||
development; | ||
(D) the size and quality of the units; | ||
(E) the rent levels of the units; | ||
(F) the cost of the development by square foot; | ||
(G) the services to be provided to tenants of the | ||
development; | ||
(H) whether, at the time the complete application | ||
is submitted or at any time within the two-year period preceding the | ||
date of submission, the proposed development site is located in an | ||
area declared to be a disaster under Section 418.014; | ||
(I) quantifiable community participation with | ||
respect to the development, evaluated on the basis of written | ||
statements from any neighborhood organizations on record with the | ||
state or county in which the development is to be located and whose | ||
boundaries contain the proposed development site; and | ||
(J) the level of community support for the | ||
application, evaluated on the basis of a written statement from the | ||
state representative who represents the district containing the | ||
proposed development site if the proposed development is to be | ||
located in an unincorporated area that is part of an urban area, as | ||
that term was defined by the department on January 1, 2019; | ||
(2) uses criteria imposing penalties on applicants or | ||
affiliates who have requested extensions of department deadlines | ||
relating to developments supported by housing tax credit | ||
allocations made in the application round preceding the current | ||
round or a developer or principal of the applicant that has been | ||
removed by the lender, equity provider, or limited partners for its | ||
failure to perform its obligations under the loan documents or | ||
limited partnership agreement; and | ||
(3) encourages applicants to provide free notary | ||
public service to the residents of the developments for which the | ||
allocation of housing tax credits is requested. | ||
SECTION 2. Section 2306.6718(b), Government Code, is | ||
amended to read as follows: | ||
(b) The department shall provide the elected officials with | ||
an opportunity to comment on the application during the application | ||
evaluation process [ |
||
consider those comments in evaluating applications [ |
||
|
||
SECTION 3. 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 2020 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 4. This Act takes effect September 1, 2019. |