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 |
|
||
|
||
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. |