Texas 2009 - 81st Regular

Texas House Bill HB1412 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4968 JAM-D
2	2	By: Bohac H.B. No. 1412
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to participation in the process for evaluating an
8	8	application for a low income housing tax credit.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2306.6704(b-1), Government Code, is
11	11	amended to read as follows:
12	12	(b-1) The preapplication process must require the applicant
13	13	to provide the department with evidence that the applicant has
14	14	notified the following entities with respect to the filing of the
15	15	application:
16	16	(1) each [any] neighborhood organization
17	17	[organizations] on record with the state or county in which the
18	18	development is to be located and that has [whose] boundaries
19	19	containing [contain] the proposed development site or has a
20	20	boundary located not more than one-half mile from the proposed
21	21	development site;
22	22	(2) the superintendent and the presiding officer of
23	23	the board of trustees of the school district containing the
24	24	development;
25	25	(3) the presiding officer of the governing body of any
26	26	municipality containing the development and all elected members of
27	27	that body;
28	28	(4) the presiding officer of the governing body of the
29	29	county containing the development and all elected members of that
30	30	body; and
31	31	(5) each [the] state senator or [and] state
32	32	representative that represents a [of the] district that contains
33	33	[containing] the proposed development site or has a boundary
34	34	located not more than one-half mile from the proposed development
35	35	site.
36	36	SECTION 2. Section 2306.6705, Government Code, is amended
37	37	to read as follows:
38	38	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
39	39	application must contain at a minimum the following written,
40	40	detailed information in a form prescribed by the board:
41	41	(1) a description of:
42	42	(A) the financing plan for the development,
43	43	including any nontraditional financing arrangements;
44	44	(B) the use of funds with respect to the
45	45	development;
46	46	(C) the funding sources for the development,
47	47	including:
48	48	(i) construction, permanent, and bridge
49	49	loans; and
50	50	(ii) rents, operating subsidies, and
51	51	replacement reserves; and
52	52	(D) the commitment status of the funding sources
53	53	for the development;
54	54	(2) if syndication costs are included in the eligible
55	55	basis, a justification of the syndication costs for each cost
56	56	category by an attorney or accountant specializing in tax matters;
57	57	(3) from a syndicator or a financial consultant of the
58	58	applicant, an estimate of the amount of equity dollars expected to
59	59	be raised for the development in conjunction with the amount of
60	60	housing tax credits requested for allocation to the applicant,
61	61	including:
62	62	(A) pay-in schedules; and
63	63	(B) syndicator consulting fees and other
64	64	syndication costs;
65	65	(4) if rental assistance, an operating subsidy, or an
66	66	annuity is proposed for the development, any related contract or
67	67	other agreement securing those funds and an identification of:
68	68	(A) the source and annual amount of the funds;
69	69	(B) the number of units receiving the funds; and
70	70	(C) the term and expiration date of the contract
71	71	or other agreement;
72	72	(5) if the development is located within the
73	73	boundaries of a political subdivision with a zoning ordinance,
74	74	evidence in the form of a letter from the chief executive officer of
75	75	the political subdivision or from another local official with
76	76	jurisdiction over zoning matters that states that:
77	77	(A) the development is permitted under the
78	78	provisions of the ordinance that apply to the location of the
79	79	development; or
80	80	(B) the applicant is in the process of seeking
81	81	the appropriate zoning and has signed and provided to the political
82	82	subdivision a release agreeing to hold the political subdivision
83	83	and all other parties harmless in the event that the appropriate
84	84	zoning is denied;
85	85	(6) if an occupied development is proposed for
86	86	rehabilitation:
87	87	(A) an explanation of the process used to notify
88	88	and consult with the tenants in preparing the application;
89	89	(B) a relocation plan outlining:
90	90	(i) relocation requirements; and
91	91	(ii) a budget with an identified funding
92	92	source; and
93	93	(C) if applicable, evidence that the relocation
94	94	plan has been submitted to the appropriate local agency;
95	95	(7) a certification of the applicant's compliance with
96	96	appropriate state and federal laws, as required by other state law
97	97	or by the board;
98	98	(8) any other information required by the board in the
99	99	qualified allocation plan; and
100	100	(9) evidence that the applicant has notified the
101	101	following entities with respect to the filing of the application:
102	102	(A) each [any] neighborhood organization
103	103	[organizations] on record with the state or county in which the
104	104	development is to be located and that has [whose] boundaries
105	105	containing [contain] the proposed development site or has a
106	106	boundary located not more than one-half mile from the proposed
107	107	development site;
108	108	(B) the superintendent and the presiding officer
109	109	of the board of trustees of the school district containing the
110	110	development;
111	111	(C) the presiding officer of the governing body
112	112	of any municipality containing the development and all elected
113	113	members of that body;
114	114	(D) the presiding officer of the governing body
115	115	of the county containing the development and all elected members of
116	116	that body; and
117	117	(E) each [the] state senator or [and] state
118	118	representative that represents a [of the] district that contains
119	119	[containing] the proposed development site or has a boundary
120	120	located not more than one-half mile from the proposed development
121	121	site.
122	122	SECTION 3. Section 2306.6710(b), Government Code, is
123	123	amended to read as follows:
124	124	(b) If an application satisfies the threshold criteria, the
125	125	department shall score and rank the application using a point
126	126	system that:
127	127	(1) prioritizes in descending order criteria
128	128	regarding:
129	129	(A) financial feasibility of the development
130	130	based on the supporting financial data required in the application
131	131	that will include a project underwriting pro forma from the
132	132	permanent or construction lender;
133	133	(B) quantifiable community participation with
134	134	respect to the development, evaluated on the basis of written
135	135	statements from each [any] neighborhood organization
136	136	[organizations] on record with the state or county in which the
137	137	development is to be located and that has [whose] boundaries
138	138	containing [contain] the proposed development site or has a
139	139	boundary located not more than one-half mile from the proposed
140	140	development site;
141	141	(C) the income levels of tenants of the
142	142	development;
143	143	(D) the size and quality of the units;
144	144	(E) the commitment of development funding by
145	145	local political subdivisions;
146	146	(F) the level of community support or opposition
147	147	for the application, evaluated on the basis of written statements
148	148	from any [the] state representative or [the] state senator that
149	149	represents a [the] district that contains [containing] the proposed
150	150	development site or has a boundary located not more than one-half
151	151	mile from the proposed development site;
152	152	(G) the rent levels of the units;
153	153	(H) the cost of the development by square foot;
154	154	(I) the services to be provided to tenants of the
155	155	development; and
156	156	(J) whether, at the time the complete application
157	157	is submitted or at any time within the two-year period preceding the
158	158	date of submission, the proposed development site is located in an
159	159	area declared to be a disaster under Section 418.014;
160	160	(2) uses criteria imposing penalties on applicants or
161	161	affiliates who have requested extensions of department deadlines
162	162	relating to developments supported by housing tax credit
163	163	allocations made in the application round preceding the current
164	164	round or a developer or principal of the applicant that has been
165	165	removed by the lender, equity provider, or limited partners for its
166	166	failure to perform its obligations under the loan documents or
167	167	limited partnership agreement; and
168	168	(3) encourages applicants to provide free notary
169	169	public service to the residents of the developments for which the
170	170	allocation of housing tax credits is requested.
171	171	SECTION 4. Sections 2306.6718(a) and (c), Government Code,
172	172	are amended to read as follows:
173	173	(a) The department shall provide written notice of the
174	174	filing of an application to the following elected officials:
175	175	(1) members of the legislature who represent a house
176	176	or senate district that contains [the community containing] the
177	177	development described in the application or has a boundary located
178	178	not more than one-half mile from the development described in the
179	179	application; and
180	180	(2) the chief executive officer of the political
181	181	subdivision containing the development described in the
182	182	application.
183	183	(c) A member of the legislature who represents a house or
184	184	senate district that contains [the community containing] the
185	185	development described in the application or has a boundary located
186	186	not more than one-half mile from the development described in the
187	187	application may hold a district [community] meeting at which the
188	188	department shall provide appropriate representation.
189	189	SECTION 5. The changes in law made by this Act apply only to
190	190	an application for a low income housing tax credit submitted to the
191	191	Texas Department of Housing and Community Affairs during an
192	192	application cycle that begins on or after the effective date of this
193	193	Act. An application submitted during an application cycle that
194	194	began before the effective date of this Act is governed by the law
195	195	in effect on the date the application cycle began, and the former
196	196	law is continued in effect for that purpose.
197	197	SECTION 6. This Act takes effect immediately if it receives
198	198	a vote of two-thirds of all the members elected to each house, as
199	199	provided by Section 39, Article III, Texas Constitution. If this
200	200	Act does not receive the vote necessary for immediate effect, this
201	201	Act takes effect September 1, 2009.