81R4968 JAM-D
By: Bohac H.B. No. 1412
A BILL TO BE ENTITLED
AN ACT
relating to participation in the process for evaluating an
application for a low income housing tax credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6704(b-1), Government Code, is
amended to read as follows:
(b-1) The preapplication process must require the applicant
to provide the department with evidence that the applicant has
notified the following entities with respect to the filing of the
application:
(1) each [any] neighborhood organization
[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-half mile from the proposed
development site;
(2) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development;
(3) the presiding officer of the governing body of any
municipality containing the development and all elected members of
that body;
(4) the presiding officer of the governing body of the
county containing the development and all elected members of that
body; and
(5) each [the] state senator or [and] state
representative that represents a [of the] district that contains
[containing] the proposed development site or has a boundary
located not more than one-half mile from the proposed development
site.
SECTION 2. Section 2306.6705, Government Code, is amended
to read as follows:
Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. 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) each [any] neighborhood organization
[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-half mile from the proposed
development 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) each [the] state senator or [and] state
representative that represents a [of the] district that contains
[containing] the proposed development site or has a boundary
located not more than one-half mile from the proposed development
site.
SECTION 3. Section 2306.6710(b), Government Code, is
amended 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 written
statements from each [any] neighborhood organization
[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-half mile from the proposed
development site;
(C) the income levels of tenants of the
development;
(D) the size and quality of the units;
(E) the commitment of development funding by
local political subdivisions;
(F) the level of community support or opposition
for the application, evaluated on the basis of written statements
from any [the] state representative or [the] state senator that
represents a [the] district that contains [containing] the proposed
development site or has a boundary located not more than one-half
mile from the proposed development site;
(G) the rent levels of the units;
(H) the cost of the development by square foot;
(I) the services to be provided to tenants of the
development; and
(J) 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;
(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.
SECTION 4. Sections 2306.6718(a) and (c), Government Code,
are amended to read as follows:
(a) The department shall provide written notice of the
filing of an application to the following elected officials:
(1) members of the legislature who represent a house
or senate district that contains [the community containing] the
development described in the application or has a boundary located
not more than one-half mile from the development described in the
application; and
(2) the chief executive officer of the political
subdivision containing the development described in the
application.
(c) A member of the legislature who represents a house or
senate district that contains [the community containing] the
development described in the application or has a boundary located
not more than one-half mile from the development described in the
application may hold a district [community] meeting at which the
department shall provide appropriate representation.
SECTION 5. The changes in law made by this Act apply only to
an application for a low income housing tax credit submitted to the
Texas Department of Housing and Community Affairs during an
application cycle that begins on or after the effective date of this
Act. An application submitted during an application cycle that
began before the effective date of this Act 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 6. 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, 2009.