Bill Text: TX SB1238 | 2017-2018 | 85th Legislature | Enrolled


Bill Title: Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [SB1238 Detail]

Download: Texas-2017-SB1238-Enrolled.html
 
 
  S.B. No. 1238
 
 
 
 
AN ACT
  relating to the eligibility of certain at-risk developments to
  receive low income housing tax credits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2306.6702(a)(5), Government Code, is
  amended to read as follows:
               (5)  "At-risk development" means:
                     (A)  a development that:
                           (i)  has received the benefit of a subsidy in
  the form of a below-market interest rate loan, interest rate
  reduction, rental subsidy, Section 8 housing assistance payment,
  rental supplement payment, rental assistance payment, or equity
  incentive under the following federal laws, as applicable:
                                 (a)  Sections 221(d)(3) and (5),
  National Housing Act (12 U.S.C. Section 1715l);
                                 (b)  Section 236, National Housing Act
  (12 U.S.C. Section 1715z-1);
                                 (c)  Section 202, Housing Act of 1959
  (12 U.S.C. Section 1701q);
                                 (d)  Section 101, Housing and Urban
  Development Act of 1965 (12 U.S.C. Section 1701s);
                                 (e)  the Section 8 Additional
  Assistance Program for housing developments with HUD-Insured and
  HUD-Held Mortgages administered by the United States Department of
  Housing and Urban Development as specified by 24 C.F.R. Part 886,
  Subpart A;
                                 (f)  the Section 8 Housing Assistance
  Program for the Disposition of HUD-Owned Projects administered by
  the United States Department of Housing and Urban Development as
  specified by 24 C.F.R. Part 886, Subpart C;
                                 (g)  Sections 514, 515, and 516,
  Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or
                                 (h)  Section 42, Internal Revenue Code
  of 1986 [(26 U.S.C. Section 42)]; and
                           (ii)  is subject to the following
  conditions:
                                 (a)  the stipulation to maintain
  affordability in the contract granting the subsidy is nearing
  expiration; or
                                 (b)  the HUD-insured or HUD-held
  mortgage on the development is eligible for prepayment or is
  nearing the end of its term; or
                     (B)  a development that proposes to rehabilitate
  or reconstruct housing units that:
                           (i)  [are owned by a public housing
  authority and] receive assistance under Section 9, United States
  Housing Act of 1937 (42 U.S.C. Section 1437g) and are owned by:
                                 (a)  a public housing authority; or
                                 (b)  a public facility corporation
  created by a public housing authority under Chapter 303, Local
  Government Code;
                           (ii)  received assistance under Section 9,
  United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
                                 (a)  are proposed to be disposed of or
  demolished by a public housing authority or a public facility
  corporation created by a public housing authority under Chapter
  303, Local Government Code; or
                                 (b)  have been disposed of or
  demolished by a public housing authority or a public facility
  corporation created by a public housing authority under Chapter
  303, Local Government Code, in the two-year period preceding the
  application for housing tax credits; or
                           (iii)  receive assistance or will receive
  assistance through the Rental Assistance Demonstration program
  administered by the United States Department of Housing and Urban
  Development as specified by the Consolidated and Further Continuing
  Appropriations Act, [of] 2012 (Pub. L. No. 112-55) and its
  subsequent amendments, if the application for assistance through
  the Rental Assistance Demonstration program is included in the
  applicable public housing [authority's annual] plan that was most
  recently approved by the United States Department of Housing and
  Urban Development as specified by 24 C.F.R. Section 903.23.
         SECTION 2.  Section 2306.6714, Government Code, is amended
  by adding Subsection (a-2) to read as follows:
         (a-2)  Notwithstanding any other provision of law, an
  at-risk development described by Section 2306.6702(a)(5)(B) that
  was previously allocated housing tax credits set aside under
  Subsection (a) does not lose eligibility for those credits if the
  portion of units reserved for public housing as a condition of
  eligibility for the credits under Subsection (a-1)(2) are later
  converted under the Rental Assistance Demonstration program
  administered by the United States Department of Housing and Urban
  Development as specified by the Consolidated and Further Continuing
  Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent
  amendments.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1238 passed the Senate on
  April 19, 2017, by the following vote:  Yeas 28, Nays 3.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1238 passed the House on
  May 19, 2017, by the following vote:  Yeas 133, Nays 11, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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