Texas 2009 - 81st Regular

Texas House Bill HB2121 Compare Versions

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1	1	81R27639 JAM-F
2	2	By: Olivo, et al. H.B. No. 2121
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 1,000 feet from any boundary of the
21	21	proposed 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) the state senator and state representative of the
32	32	district containing the development.
33	33	SECTION 2. Section 2306.6705, Government Code, is amended
34	34	to read as follows:
35	35	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
36	36	application must contain at a minimum the following written,
37	37	detailed information in a form prescribed by the board:
38	38	(1) a description of:
39	39	(A) the financing plan for the development,
40	40	including any nontraditional financing arrangements;
41	41	(B) the use of funds with respect to the
42	42	development;
43	43	(C) the funding sources for the development,
44	44	including:
45	45	(i) construction, permanent, and bridge
46	46	loans; and
47	47	(ii) rents, operating subsidies, and
48	48	replacement reserves; and
49	49	(D) the commitment status of the funding sources
50	50	for the development;
51	51	(2) if syndication costs are included in the eligible
52	52	basis, a justification of the syndication costs for each cost
53	53	category by an attorney or accountant specializing in tax matters;
54	54	(3) from a syndicator or a financial consultant of the
55	55	applicant, an estimate of the amount of equity dollars expected to
56	56	be raised for the development in conjunction with the amount of
57	57	housing tax credits requested for allocation to the applicant,
58	58	including:
59	59	(A) pay-in schedules; and
60	60	(B) syndicator consulting fees and other
61	61	syndication costs;
62	62	(4) if rental assistance, an operating subsidy, or an
63	63	annuity is proposed for the development, any related contract or
64	64	other agreement securing those funds and an identification of:
65	65	(A) the source and annual amount of the funds;
66	66	(B) the number of units receiving the funds; and
67	67	(C) the term and expiration date of the contract
68	68	or other agreement;
69	69	(5) if the development is located within the
70	70	boundaries of a political subdivision with a zoning ordinance,
71	71	evidence in the form of a letter from the chief executive officer of
72	72	the political subdivision or from another local official with
73	73	jurisdiction over zoning matters that states that:
74	74	(A) the development is permitted under the
75	75	provisions of the ordinance that apply to the location of the
76	76	development; or
77	77	(B) the applicant is in the process of seeking
78	78	the appropriate zoning and has signed and provided to the political
79	79	subdivision a release agreeing to hold the political subdivision
80	80	and all other parties harmless in the event that the appropriate
81	81	zoning is denied;
82	82	(6) if an occupied development is proposed for
83	83	rehabilitation:
84	84	(A) an explanation of the process used to notify
85	85	and consult with the tenants in preparing the application;
86	86	(B) a relocation plan outlining:
87	87	(i) relocation requirements; and
88	88	(ii) a budget with an identified funding
89	89	source; and
90	90	(C) if applicable, evidence that the relocation
91	91	plan has been submitted to the appropriate local agency;
92	92	(7) a certification of the applicant's compliance with
93	93	appropriate state and federal laws, as required by other state law
94	94	or by the board;
95	95	(8) any other information required by the board in the
96	96	qualified allocation plan; and
97	97	(9) evidence that the applicant has notified the
98	98	following entities with respect to the filing of the application:
99	99	(A) each [any] neighborhood organization
100	100	[organizations] on record with the state or county in which the
101	101	development is to be located and that has [whose] boundaries
102	102	containing [contain] the proposed development site or has a
103	103	boundary located not more than 1,000 feet from any boundary of the
104	104	proposed development site;
105	105	(B) the superintendent and the presiding officer
106	106	of the board of trustees of the school district containing the
107	107	development;
108	108	(C) the presiding officer of the governing body
109	109	of any municipality containing the development and all elected
110	110	members of that body;
111	111	(D) the presiding officer of the governing body
112	112	of the county containing the development and all elected members of
113	113	that body; and
114	114	(E) the state senator and state representative of
115	115	the district containing the development.
116	116	SECTION 3. Section 2306.6710(b), Government Code, is
117	117	amended to read as follows:
118	118	(b) If an application satisfies the threshold criteria, the
119	119	department shall score and rank the application using a point
120	120	system that:
121	121	(1) prioritizes in descending order criteria
122	122	regarding:
123	123	(A) financial feasibility of the development
124	124	based on the supporting financial data required in the application
125	125	that will include a project underwriting pro forma from the
126	126	permanent or construction lender;
127	127	(B) quantifiable community participation with
128	128	respect to the development, evaluated on the basis of written
129	129	statements from each [any] neighborhood organization
130	130	[organizations] on record with the state or county in which the
131	131	development is to be located and that has [whose] boundaries
132	132	containing [contain] the proposed development site or has a
133	133	boundary located not more than 1,000 feet from any boundary of the
134	134	proposed development site;
135	135	(C) the income levels of tenants of the
136	136	development;
137	137	(D) the size and quality of the units;
138	138	(E) the commitment of development funding by
139	139	local political subdivisions;
140	140	(F) the level of community support for the
141	141	application, evaluated on the basis of written statements from the
142	142	state representative or the state senator that represents the
143	143	district containing the proposed development site;
144	144	(G) the rent levels of the units;
145	145	(H) the cost of the development by square foot;
146	146	(I) the services to be provided to tenants of the
147	147	development; and
148	148	(J) whether, at the time the complete application
149	149	is submitted or at any time within the two-year period preceding the
150	150	date of submission, the proposed development site is located in an
151	151	area declared to be a disaster under Section 418.014;
152	152	(2) uses criteria imposing penalties on applicants or
153	153	affiliates who have requested extensions of department deadlines
154	154	relating to developments supported by housing tax credit
155	155	allocations made in the application round preceding the current
156	156	round or a developer or principal of the applicant that has been
157	157	removed by the lender, equity provider, or limited partners for its
158	158	failure to perform its obligations under the loan documents or
159	159	limited partnership agreement; and
160	160	(3) encourages applicants to provide free notary
161	161	public service to the residents of the developments for which the
162	162	allocation of housing tax credits is requested.
163	163	SECTION 4. The changes in law made by this Act apply only to
164	164	an application for a low income housing tax credit submitted to the
165	165	Texas Department of Housing and Community Affairs during an
166	166	application cycle that begins on or after the effective date of this
167	167	Act. An application submitted during an application cycle that
168	168	began before the effective date of this Act is governed by the law
169	169	in effect on the date the application cycle began, and the former
170	170	law is continued in effect for that purpose.
171	171	SECTION 5. This Act takes effect immediately if it receives
172	172	a vote of two-thirds of all the members elected to each house, as
173	173	provided by Section 39, Article III, Texas Constitution. If this
174	174	Act does not receive the vote necessary for immediate effect, this
175	175	Act takes effect September 1, 2009.