Bill Text: TX HB59 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the system by which an application for a low income housing tax credit is scored.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2019-03-21 - Left pending in committee [HB59 Detail]
Download: Texas-2019-HB59-Introduced.html
86R1699 JAM-D | ||
By: Swanson | H.B. No. 59 |
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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, Government Code, is amended | ||
by amending Subsections (b) and (f) and adding Subsection (g) 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 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; | ||
(G) the cost of the development by square foot; | ||
(H) [ |
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of the development; | ||
(I) [ |
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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; | ||
and | ||
(J) [ |
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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[ |
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(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)(F) [ |
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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 written statements | ||
received. | ||
(g) For a proposed development that is to be located in an | ||
unincorporated area of an urban area, the department shall award an | ||
additional one-third of the maximum number of positive or negative | ||
points that may be awarded under Subsection (f)(1) or (2), as | ||
applicable, if the application is the subject of positive or | ||
negative written statements under those subdivisions. | ||
SECTION 2. 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 under Section 2306.67022, Government Code. 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 3. This Act takes effect September 1, 2019. |