Bill Text: TX HB96 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the evaluation of an application for a low income housing tax credit.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2019-03-21 - Left pending in committee [HB96 Detail]

Download: Texas-2019-HB96-Introduced.html
  86R1732 JAM-D
 
  By: Swanson H.B. No. 96
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the evaluation of an application for a low income
  housing tax credit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.6705, Government Code, is amended
  to read as follows:
         Sec. 2306.6705.  GENERAL APPLICATION REQUIREMENTS. (a) An
  application must contain at a minimum the following written,
  detailed information in a form prescribed by the board:
               (1)  a description of:
                     (A)  the financing plan for the development,
  including any nontraditional financing arrangements;
                     (B)  the use of funds with respect to the
  development;
                     (C)  the funding sources for the development,
  including:
                           (i)  construction, permanent, and bridge
  loans; and
                           (ii)  rents, operating subsidies, and
  replacement reserves; and
                     (D)  the commitment status of the funding sources
  for the development;
               (2)  if syndication costs are included in the eligible
  basis, a justification of the syndication costs for each cost
  category by an attorney or accountant specializing in tax matters;
               (3)  from a syndicator or a financial consultant of the
  applicant, an estimate of the amount of equity dollars expected to
  be raised for the development in conjunction with the amount of
  housing tax credits requested for allocation to the applicant,
  including:
                     (A)  pay-in schedules; and
                     (B)  syndicator consulting fees and other
  syndication costs;
               (4)  if rental assistance, an operating subsidy, or an
  annuity is proposed for the development, any related contract or
  other agreement securing those funds and an identification of:
                     (A)  the source and annual amount of the funds;
                     (B)  the number of units receiving the funds; and
                     (C)  the term and expiration date of the contract
  or other agreement;
               (5)  if the development is located within the
  boundaries of a political subdivision with a zoning ordinance,
  evidence in the form of a letter from the chief executive officer of
  the political subdivision or from another local official with
  jurisdiction over zoning matters that states that:
                     (A)  the development is permitted under the
  provisions of the ordinance that apply to the location of the
  development; or
                     (B)  the applicant is in the process of seeking
  the appropriate zoning and has signed and provided to the political
  subdivision a release agreeing to hold the political subdivision
  and all other parties harmless in the event that the appropriate
  zoning is denied;
               (6)  if an occupied development is proposed for
  rehabilitation:
                     (A)  an explanation of the process used to notify
  and consult with the tenants in preparing the application;
                     (B)  a relocation plan outlining:
                           (i)  relocation requirements; and
                           (ii)  a budget with an identified funding
  source; and
                     (C)  if applicable, evidence that the relocation
  plan has been submitted to the appropriate local agency;
               (7)  a certification of the applicant's compliance with
  appropriate state and federal laws, as required by other state law
  or by the board;
               (8)  any other information required by the board in the
  qualified allocation plan; and
               (9)  evidence that the applicant has notified the
  following entities with respect to the filing of the application:
                     (A)  any neighborhood organization that is 
  [organizations] on record with the state or county in which the
  development is to be located and that has [whose] boundaries
  containing [contain] the proposed development site or has a
  boundary located not more than one mile from the proposed site;
                     (B)  the superintendent and the presiding officer
  of the board of trustees of the school district containing the
  development;
                     (C)  the presiding officer of the governing body
  of any municipality containing the development and all elected
  members of that body;
                     (D)  the presiding officer of the governing body
  of the county containing the development and all elected members of
  that body; and
                     (E)  the state senator and state representative of
  the district containing the development.
         (b)  Notice provided under Subsection (a)(9) must:
               (1)  be given at least 90 days before the date the
  application is submitted to the department;
               (2)  name the development and conspicuously identify
  the development as "low-income government-subsidized housing"; and
               (3)  contain a description of the development and an
  independent study of the development's anticipated effects on local
  schools, area crime rates, infrastructure, governmental
  expenditures, population density, area property values, and the
  revenue of local, state, and federal governmental entities.
         (c)  In addition to the requirements under Subsection (a) and
  other provisions of this subchapter, an application must be
  accompanied by any written statements submitted to the developer
  under Section 2306.6710(b)(1)(I), (J), or (K).
         SECTION 2.  Section 2306.6708, Government Code, is amended
  by amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  Except as provided by Subsections [Subsection] (b) and
  (c), an applicant may not change or supplement an application in any
  manner after the filing deadline.
         (c)  Not later than June 15, an applicant may supplement an
  application with a written statement provided under Section
  2306.6710(b)(1)(J).
         SECTION 3.  Section 2306.6710, Government Code, is amended
  by amending Subsections (b) and (f) and adding Subsections (g),
  (h), and (i) 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 organization that is
  [organizations] on record with the state or county in which the
  development is to be located and that has [whose] boundaries
  containing [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; and
                     (K)  quantifiable community participation with
  respect to the development, evaluated on the basis of written
  statements from any neighborhood organization that is on record
  with the state or county in which the development is to be located
  and that has a boundary located not more than one mile from the
  proposed site, other than an organization described by Paragraph
  (I);
               (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 quantifiable community participation or
  the level of community support [for an application] under
  Subsection (b)(1)(I) or (J) [(b)(1)(J)], as applicable, the
  department 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)  In evaluating quantifiable community participation
  under Subsection (b)(1)(K), the department shall award:
               (1)  zero points for positive or neutral written
  statements received; and
               (2)  negative points for negative written statements
  received.
         (h)  The maximum number of negative points that may be
  awarded under Subsection (g) based on quantifiable community
  participation described by Subsection (b)(1)(K) shall be
  three-eighths of the maximum number of negative points that may be
  awarded under Subsection (f) based on the level of community
  support described by Subsection (b)(1)(J).
         (i)  The department shall notify a person or organization who
  submits a written statement under Subsection (b)(1)(I), (J), or (K)
  that the department has received the statement and shall provide a
  copy of that statement to the applicant.
         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 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 5.  This Act takes effect September 1, 2019.
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