Bill Text: TX HB2802 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the allocation of low income housing tax credits by the Texas Department of Housing and Community Affairs.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-04-17 - Withdrawn from schedule [HB2802 Detail]
Download: Texas-2013-HB2802-Introduced.html
83R9616 JAM-D | ||
By: Johnson | H.B. No. 2802 |
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relating to the allocation of low income housing tax credits by the | ||
Texas Department of Housing and Community Affairs. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2306.67021, Government Code, is amended | ||
to read as follows: | ||
Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. To the | ||
extent permitted by federal law, this [ |
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allocation of housing tax credits to developments financed through | ||
the private activity bond program in the same way this subchapter | ||
applies to the allocation of housing tax credits to developments | ||
not financed through the private activity bond program. | ||
SECTION 2. Section 2306.6703(a), Government Code, is | ||
amended to read as follows: | ||
(a) An application is ineligible for consideration under | ||
the low income housing tax credit program if: | ||
(1) at the time of application or at any time during | ||
the two-year period preceding the date the application round | ||
begins, the applicant or a related party is or has been: | ||
(A) a member of the board; or | ||
(B) the director, a deputy director, the director | ||
of housing programs, the director of compliance, the director of | ||
underwriting, or the low income housing tax credit program manager | ||
employed by the department; | ||
(2) the applicant proposes to replace in less than 15 | ||
years any private activity bond financing of the development | ||
described by the application, unless: | ||
(A) at least one-third of all the units in the | ||
development are public housing units or Section 8 project-based | ||
units and the applicant proposes to maintain for a period of 30 | ||
years or more 100 percent of the units supported by housing tax | ||
credits as rent-restricted and exclusively for occupancy by | ||
individuals and families earning not more than 50 percent of the | ||
area median income, adjusted for family size; | ||
(B) the applicable private activity bonds will be | ||
redeemed only in an amount consistent with their proportionate | ||
amortization; or | ||
(C) if the redemption of the applicable private | ||
activity bonds will occur in the first five years of the operation | ||
of the development and complies with Section 42(h)(4), Internal | ||
Revenue Code of 1986: | ||
(i) on the date the certificate of | ||
reservation is issued, the Bond Review Board determines that there | ||
is not a waiting list for private activity bonds in the same | ||
priority level established under Section 1372.0321 or, if | ||
applicable, in the same uniform state service region, as referenced | ||
in Section 1372.0231, that is served by the proposed development; | ||
and | ||
(ii) the applicable private activity bonds | ||
will be redeemed according to underwriting criteria, if any, | ||
established by the department; | ||
(3) the applicant proposes to construct a new | ||
development that is located one linear mile or less from a | ||
development that: | ||
(A) serves the same type of household as the new | ||
development, regardless of whether the developments serve | ||
families, elderly individuals, or another type of household; | ||
(B) is subject to deed restrictions regarding the | ||
income of residents [ |
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(C) participates in and has not been withdrawn or | ||
terminated from the low income housing tax credit program; or | ||
(4) the development is located in a municipality or, | ||
if located outside a municipality, a county that has more than twice | ||
the state average of units per capita supported by housing tax | ||
credits or private activity bonds, unless the applicant: | ||
(A) has obtained prior approval of the | ||
development from the governing body of the appropriate municipality | ||
or county containing the development; and | ||
(B) has included in the application a written | ||
statement of support from that governing body referencing this | ||
section and authorizing an allocation of housing tax credits for | ||
the development. | ||
SECTION 3. Section 2306.6710, Government Code, is amended | ||
by amending Subsections (b) and (e) and adding Subsections (g) and | ||
(h) 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 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; | ||
(C) the income levels of tenants of the | ||
development; | ||
(D) the size and quality of the units; | ||
(E) the commitment of development funding by | ||
local political subdivisions; | ||
(F) the level of community support for the | ||
application, evaluated on the basis of written statements from the | ||
state representative or the state senator that represents the | ||
district containing the proposed development site; | ||
(G) the rent levels of the units; | ||
(H) the cost of the development by square foot; | ||
(I) the services to be provided to tenants of the | ||
development; [ |
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(J) 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; and | ||
(K) the source of the revenue stream of the | ||
development; | ||
(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. | ||
(e) In scoring applications for purposes of housing tax | ||
credit allocations, the department shall award, consistent with | ||
Section 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), | ||
preference points to a development that will: | ||
(1) when practicable and feasible based on documented, | ||
committed, and available third-party funding sources, serve the | ||
lowest income tenants per housing tax credit, if the development is | ||
to be located outside a qualified census tract; and | ||
(2) subject to Subsection (h), produce for the longest | ||
economically feasible period the greatest number of high quality | ||
units committed to remaining affordable to any tenants who are | ||
income-eligible under the low income housing tax credit program. | ||
(g) In evaluating the source of the revenue stream for an | ||
application under Subsection (b)(1)(K), the department shall award | ||
positive points for a development that is not entirely dependent on | ||
revenue derived from deed-restricted reduced rent. | ||
(h) The department may not award preference points to a | ||
development based on a deed restriction that is stricter than any | ||
federal requirement under the program. | ||
SECTION 4. 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 begins on or after the effective | ||
date of this Act. An application that is submitted during an | ||
application cycle that began before the effective date of this Act | ||
is governed by the law in effect at the time the application cycle | ||
began, and the former law is continued in effect for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2013. |