Texas 2009 - 81st Regular

Texas House Bill HB555 Compare Versions

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

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1	1	81R2607 JAM-D
2	2	By: Menendez H.B. No. 555
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the evaluation of applications for certain financial
8	8	assistance administered by the Texas Department of Housing and
9	9	Community Affairs.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2306.1114(a), Government Code, is
12	12	amended to read as follows:
13	13	(a) Not later than the 14th day after the date an
14	14	application or a proposed application for housing funds described
15	15	by Section 2306.111 has been filed, the department shall provide
16	16	written notice of the filing of the application or proposed
17	17	application to the following persons:
18	18	(1) the United States representative who represents
19	19	the community containing the development described in the
20	20	application;
21	21	(2) members of the legislature who represent the
22	22	community containing the development described in the application;
23	23	(3) the presiding officer of the governing body of the
24	24	political subdivision containing the development described in the
25	25	application;
26	26	(4) any member of the governing body of a political
27	27	subdivision who represents the area containing the development
28	28	described in the application;
29	29	(5) the superintendent and the presiding officer of
30	30	the board of trustees of the school district containing the
31	31	development described in the application; [and]
32	32	(6) any neighborhood organizations on record with the
33	33	state, municipality, or county in which the development described
34	34	in the application is to be located and whose boundaries, as
35	35	established by the applicable record on file:
36	36	(A) contain the proposed development site; or
37	37	(B) encompass the same public elementary school
38	38	attendance zone, or a portion of the same zone, as the proposed
39	39	development site, if the boundary of the organization is located
40	40	not more than one linear mile from the site; and
41	41	(7) any public housing authority resident's council
42	42	with one or more members who reside or who the applicant knows are
43	43	likely to reside at the development described in the application.
44	44	SECTION 2. Section 2306.6704(b-1), Government Code, is
45	45	amended to read as follows:
46	46	(b-1) The preapplication process must require the applicant
47	47	to provide the department with evidence that the applicant has
48	48	notified the following entities with respect to the filing of the
49	49	application:
50	50	(1) any neighborhood organizations on record with the
51	51	state, municipality, or county in which the development is to be
52	52	located and whose boundaries, as established by the applicable
53	53	record on file:
54	54	(A) contain the proposed development site; or
55	55	(B) encompass the same public elementary school
56	56	attendance zone, or a portion of the same zone, as the proposed
57	57	development site, if the boundary of the organization is located
58	58	not more than one linear mile from the site;
59	59	(2) the superintendent and the presiding officer of
60	60	the board of trustees of the school district containing the
61	61	development;
62	62	(3) the presiding officer of the governing body of any
63	63	municipality containing the development and all elected members of
64	64	that body;
65	65	(4) the presiding officer of the governing body of the
66	66	county containing the development and all elected members of that
67	67	body; [and]
68	68	(5) the state senator and state representative of the
69	69	district containing the development; and
70	70	(6) any public housing authority resident's council
71	71	with one or more members who reside or who the applicant knows are
72	72	likely to reside at the development.
73	73	SECTION 3. Section 2306.6705, Government Code, is amended
74	74	to read as follows:
75	75	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
76	76	application must contain at a minimum the following written,
77	77	detailed information in a form prescribed by the board:
78	78	(1) a description of:
79	79	(A) the financing plan for the development,
80	80	including any nontraditional financing arrangements;
81	81	(B) the use of funds with respect to the
82	82	development;
83	83	(C) the funding sources for the development,
84	84	including:
85	85	(i) construction, permanent, and bridge
86	86	loans; and
87	87	(ii) rents, operating subsidies, and
88	88	replacement reserves; and
89	89	(D) the commitment status of the funding sources
90	90	for the development;
91	91	(2) if syndication costs are included in the eligible
92	92	basis, a justification of the syndication costs for each cost
93	93	category by an attorney or accountant specializing in tax matters;
94	94	(3) from a syndicator or a financial consultant of the
95	95	applicant, an estimate of the amount of equity dollars expected to
96	96	be raised for the development in conjunction with the amount of
97	97	housing tax credits requested for allocation to the applicant,
98	98	including:
99	99	(A) pay-in schedules; and
100	100	(B) syndicator consulting fees and other
101	101	syndication costs;
102	102	(4) if rental assistance, an operating subsidy, or an
103	103	annuity is proposed for the development, any related contract or
104	104	other agreement securing those funds and an identification of:
105	105	(A) the source and annual amount of the funds;
106	106	(B) the number of units receiving the funds; and
107	107	(C) the term and expiration date of the contract
108	108	or other agreement;
109	109	(5) if the development is located within the
110	110	boundaries of a political subdivision with a zoning ordinance,
111	111	evidence in the form of a letter from the chief executive officer of
112	112	the political subdivision or from another local official with
113	113	jurisdiction over zoning matters that states that:
114	114	(A) the development is permitted under the
115	115	provisions of the ordinance that apply to the location of the
116	116	development; or
117	117	(B) the applicant is in the process of seeking
118	118	the appropriate zoning and has signed and provided to the political
119	119	subdivision a release agreeing to hold the political subdivision
120	120	and all other parties harmless in the event that the appropriate
121	121	zoning is denied;
122	122	(6) if an occupied development is proposed for
123	123	rehabilitation:
124	124	(A) an explanation of the process used to notify
125	125	and consult with the tenants in preparing the application;
126	126	(B) a relocation plan outlining:
127	127	(i) relocation requirements; and
128	128	(ii) a budget with an identified funding
129	129	source; and
130	130	(C) if applicable, evidence that the relocation
131	131	plan has been submitted to the appropriate local agency;
132	132	(7) a certification of the applicant's compliance with
133	133	appropriate state and federal laws, as required by other state law
134	134	or by the board;
135	135	(8) any other information required by the board in the
136	136	qualified allocation plan; and
137	137	(9) evidence that the applicant has notified the
138	138	following entities with respect to the filing of the application:
139	139	(A) any neighborhood organizations on record
140	140	with the state, municipality, or county in which the development is
141	141	to be located and whose boundaries, as established by the
142	142	applicable record on file:
143	143	(i) contain the proposed development site;
144	144	or
145	145	(ii) encompass the same public elementary
146	146	school attendance zone, or a portion of the same zone, as the
147	147	proposed development site, if the boundary of the organization is
148	148	located not more than one linear mile from the site;
149	149	(B) the superintendent and the presiding officer
150	150	of the board of trustees of the school district containing the
151	151	development;
152	152	(C) the presiding officer of the governing body
153	153	of any municipality containing the development and all elected
154	154	members of that body;
155	155	(D) the presiding officer of the governing body
156	156	of the county containing the development and all elected members of
157	157	that body; [and]
158	158	(E) the state senator and state representative of
159	159	the district containing the development; and
160	160	(F) any public housing authority resident's
161	161	council with one or more members who reside or who the applicant
162	162	knows are likely to reside at the development.
163	163	SECTION 4. Section 2306.6710, Government Code, is amended
164	164	by amending Subsection (b) and adding Subsection (g) to read as
165	165	follows:
166	166	(b) If an application satisfies the threshold criteria, the
167	167	department shall score and rank the application using a point
168	168	system that:
169	169	(1) prioritizes in descending order criteria
170	170	regarding:
171	171	(A) financial feasibility of the development
172	172	based on the supporting financial data required in the application
173	173	that will include a project underwriting pro forma from the
174	174	permanent or construction lender;
175	175	(B) quantifiable community participation with
176	176	respect to the development, evaluated on the basis of written
177	177	statements from:
178	178	(i) any neighborhood organizations on
179	179	record with the state, municipality, or county in which the
180	180	development is to be located and whose boundaries, as established
181	181	by the applicable record on file:
182	182	(a) contain the proposed development
183	183	site; or
184	184	(b) encompass the same public
185	185	elementary school attendance zone, or a portion of the same zone, as
186	186	the proposed development site, if the boundary of the organization
187	187	is located not more than one linear mile from the site; or
188	188	(ii) any public housing authority
189	189	resident's council with one or more members who reside or who the
190	190	applicant knows are likely to reside at the development;
191	191	(C) the income levels of tenants of the
192	192	development;
193	193	(D) the size and quality of the units;
194	194	(E) the commitment of development funding by
195	195	local political subdivisions;
196	196	(F) the level of community support for the
197	197	application, evaluated on the basis of written statements from the
198	198	state representative or the state senator that represents the
199	199	district containing the proposed development site;
200	200	(G) the rent levels of the units;
201	201	(H) the cost of the development by square foot;
202	202	(I) the services to be provided to tenants of the
203	203	development; and
204	204	(J) whether, at the time the complete application
205	205	is submitted or at any time within the two-year period preceding the
206	206	date of submission, the proposed development site is located in an
207	207	area declared to be a disaster under Section 418.014;
208	208	(2) uses criteria imposing penalties on applicants or
209	209	affiliates who have requested extensions of department deadlines
210	210	relating to developments supported by housing tax credit
211	211	allocations made in the application round preceding the current
212	212	round or a developer or principal of the applicant that has been
213	213	removed by the lender, equity provider, or limited partners for its
214	214	failure to perform its obligations under the loan documents or
215	215	limited partnership agreement; and
216	216	(3) encourages applicants to provide free notary
217	217	public service to the residents of the developments for which the
218	218	allocation of housing tax credits is requested.
219	219	(g) The department shall presume that the applicant has made
220	220	a good faith effort to obtain community participation and shall
221	221	award the applicant the total number of points that may be awarded
222	222	under Subsection (b)(1)(B) if the application includes a statement
223	223	that an organization or other entity described by Subsection
224	224	(b)(1)(B) does not exist, as verified by:
225	225	(1) the presiding officer or authorized
226	226	representative of the governing body of the municipality in which
227	227	the development is to be located; or
228	228	(2) the clerk of the county in which the development is
229	229	to be located if the development is to be located outside a
230	230	municipality.
231	231	SECTION 5. The changes in law made by this Act relating to
232	232	applications for financial assistance administered by the Texas
233	233	Department of Housing and Community Affairs apply only to an
234	234	application filed on or after the effective date of this Act. An
235	235	application filed before the effective date of this Act is governed
236	236	by the law in effect on the date the application was filed, and the
237	237	former law is continued in effect for that purpose.
238	238	SECTION 6. This Act takes effect September 1, 2009.