Bill Text: TX SB543 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to prohibiting the allocation of low income housing tax credits to certain applicants.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-02-21 - Referred to Intergovernmental Relations [SB543 Detail]

Download: Texas-2019-SB543-Introduced.html
  86R6367 JG-D
 
  By: Watson S.B. No. 543
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting the allocation of low income housing tax
  credits to certain applicants.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter DD, Chapter 2306, Government Code, is
  amended by adding Section 2306.67031 to read as follows:
         Sec. 2306.67031.  RESTRICTION ON ALLOCATION OF HOUSING TAX
  CREDITS TO CERTAIN DEVELOPMENTS. (a) In this section:
               (1)  "Extended use period" has the meaning assigned by
  Section 42(h)(6)(D), Internal Revenue Code of 1986.
               (2)  "Qualified contract" has the meaning assigned by
  Section 42(h)(6)(F), Internal Revenue Code of 1986.
         (b)  The department may not allocate housing tax credits to a
  development proposed by an applicant who owns one or more existing
  developments supported by housing tax credits under this subchapter
  unless the applicant agrees, as part of any conditions imposed by
  the department in connection with the allocation of housing tax
  credits for the proposed development, to waive the applicant's
  right to sell any existing developments through the use of a
  qualified contract during the extended use period.
         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.
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