Bill Text: TX HB3311 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the scoring criteria for an application for a low income housing tax credit and the allocation of those credits to developments reserved for elderly persons.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-06-19 - Effective on 9/1/15 [HB3311 Detail]
Download: Texas-2015-HB3311-Enrolled.html
H.B. No. 3311 |
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relating to the scoring criteria for an application for a low income | ||
housing tax credit and the allocation of those credits to | ||
developments reserved for elderly persons. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. | ||
Sections 2306.6710(b) and (f), Government Code, | ||
are 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) [ |
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(F) [ |
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foot; | ||
(G) [ |
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of the development; | ||
(H) [ |
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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) [ |
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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) [ |
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application, evaluated on the basis of a written statement from the | ||
state representative who represents the district containing the | ||
proposed development site; | ||
(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. | ||
(f) In evaluating the level of community support for an | ||
application under Subsection (b)(1)(J) [ |
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shall award: | ||
(1) positive points for positive written statements | ||
received; | ||
(2) negative points for negative written statements | ||
received; and | ||
(3) zero points for neutral statements received. | ||
SECTION 2. Section 2306.6711, Government Code, is amended | ||
by adding Subsections (h) and (i) to read as follows: | ||
(h) Notwithstanding Section 2306.6710(d), and except as | ||
necessary to comply with the nonprofit set-aside required by | ||
Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. Section | ||
42(h)(5)), the board may not allocate to developments reserved for | ||
elderly persons and located in an urban subregion of a uniform state | ||
service region a percentage of the available housing tax credits | ||
allocated to developments located in that subregion that is greater | ||
than the percentage that results from the following formula, unless | ||
there are no other qualified applicants in that region: | ||
MP = [(LEH - ERU)/(TLH - TEU)] X 100 | ||
where: | ||
"MP" is the maximum percentage of the available housing tax | ||
credits allocated to developments in the subregion that may be | ||
allocated to developments reserved for elderly persons; | ||
"LEH" is the number of low income elderly households in the | ||
subregion; | ||
"ERU" is the number of existing units reserved for elderly | ||
persons in developments located in the subregion that already | ||
receive housing tax credits; | ||
"TLH" is the total number of low income households in the | ||
subregion; and | ||
"TEU" is the total number of existing units in developments | ||
located in the subregion that already receive housing tax credits. | ||
(i) Subsection (h) applies only to a uniform state service | ||
region that contains a county with a population of more than one | ||
million. | ||
SECTION 3. Section 2306.6725, Government Code, is amended | ||
by amending Subsections (a) and (d) and adding Subsections (e) and | ||
(f) to read as follows: | ||
(a) In allocating low income housing tax credits, the | ||
department shall score each application using a point system based | ||
on criteria adopted by the department that are consistent with the | ||
department's housing goals, including criteria addressing the | ||
ability of the proposed project to: | ||
(1) provide quality social support services to | ||
residents; | ||
(2) demonstrate community and neighborhood support as | ||
defined by the qualified allocation plan; | ||
(3) consistent with sound underwriting practices and | ||
when economically feasible, serve individuals and families of | ||
extremely low income by leveraging private and state and federal | ||
resources, including federal HOPE VI grants received through the | ||
United States Department of Housing and Urban Development; | ||
(4) serve traditionally underserved areas; | ||
(5) demonstrate support from local political | ||
subdivisions based on the subdivisions' commitment of development | ||
funding; | ||
(6) remain affordable to qualified tenants for an | ||
extended, economically feasible period; and | ||
(7) [ |
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that are required under Section 504, Rehabilitation Act of 1973 (29 | ||
U.S.C. Section 794), and specified under 24 C.F.R. Part 8, Subpart | ||
C. | ||
(d) For each scoring criterion, the department shall use a | ||
range of points to evaluate the degree to which a proposed project | ||
satisfies the criterion. The department may not award: | ||
(1) a number of points for a scoring criterion that is | ||
disproportionate to the degree to which a proposed project complies | ||
with that criterion; or | ||
(2) to a proposed project for the general population a | ||
number of points for a scoring criterion that is different than the | ||
number of points awarded for that criterion to a proposed project | ||
reserved for elderly persons if the proposed projects comply with | ||
the criterion to the same degree. | ||
(e) In establishing for the 2016 and 2017 qualified | ||
allocation plans the scoring criterion related to the commitment of | ||
development funding by local political subdivisions, the | ||
department shall significantly reduce for each place regardless of | ||
population the amount in funding, per low income unit, that is | ||
required for a proposed project to receive the applicable number of | ||
points for that criterion. After the reduction, the amount of | ||
required funding may be a de minimis amount. | ||
(f) Subsection (e) and this subsection expire September 1, | ||
2019. | ||
SECTION 4. (a) The change in law made by this Act to | ||
Section 2306.6711, Government Code, applies only to the allocation | ||
of low income housing tax credits for an application cycle that | ||
begins on or after the effective date of this Act. The allocation | ||
of low income housing tax credits for an application cycle that | ||
begins before the effective date of this Act 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. | ||
(b) The change in law made by this Act to Sections 2306.6710 | ||
and 2306.6725, Government Code, 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, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3311 was passed by the House on May 8, | ||
2015, by the following vote: Yeas 123, Nays 19, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 3311 on May 28, 2015, by the following vote: Yeas 128, Nays 16, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3311 was passed by the Senate, with | ||
amendments, on May 26, 2015, by the following vote: Yeas 28, Nays | ||
3. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |