82R65 JAM-F
By: Guillen H.B. No. 3716
A BILL TO BE ENTITLED
AN ACT
relating to the evaluation of applications for certain financial
assistance administered by the Texas Department of Housing and
Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.1114(a), Government Code, is
amended to read as follows:
(a) Not later than the 14th day after the date an
application or a proposed application for housing funds described
by Section 2306.111 has been filed, the department shall provide
written notice of the filing of the application or proposed
application to the following persons:
(1) the United States representative who represents
the community containing the development described in the
application;
(2) members of the legislature who represent the
community containing the development described in the application;
(3) the presiding officer of the governing body of the
political subdivision containing the development described in the
application;
(4) any member of the governing body of a political
subdivision who represents the area containing the development
described in the application;
(5) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development described in the application; [and]
(6) any neighborhood organizations or public housing
authority resident's councils on record with the state,
municipality, or county in which the development described in the
application is to be located and whose boundaries, as established
by the applicable record on file:
(A) contain the proposed development site; or
(B) encompass the same public elementary school
attendance zone, or a portion of the same zone, as the proposed
development site; and
(7) any public housing authority resident's council:
(A) with one or more members who reside or who the
applicant knows are likely to reside at the development described
in the application; and
(B) whose boundaries contain the proposed
development site.
SECTION 2. 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) any neighborhood organizations or public housing
authority resident's councils on record with the state,
municipality, or county in which the development is to be located
and whose boundaries, as established by the applicable record on
file:
(A) contain the proposed development site; or
(B) encompass the same public elementary school
attendance zone, or a portion of the same zone, as 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) the state senator and state representative of the
district containing the development; and
(6) any public housing authority resident's council:
(A) with one or more members who reside or who the
applicant knows are likely to reside at the development; and
(B) whose boundaries contain the proposed
development site.
SECTION 3. 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) any neighborhood organizations or public
housing authority resident's councils on record with the state,
municipality, or county in which the development is to be located
and whose boundaries, as established by the applicable record on
file:
(i) contain the proposed development site;
or
(ii) encompass the same public elementary
school attendance zone, or a portion of the same zone, as 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) the state senator and state representative of
the district containing the development; and
(F) any public housing authority resident's
council:
(i) with one or more members who reside or
who the applicant knows are likely to reside at the development; and
(ii) whose boundaries contain the proposed
development site.
SECTION 4. Section 2306.6710, Government Code, is amended
by amending Subsection (b) and adding Subsections (g) and (h) 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:
(i) any neighborhood organizations or
public housing authority resident's councils on record with the
state, municipality, or county in which the development is to be
located and whose boundaries, as established by the applicable
record on file:
(a) contain the proposed development
site; or
(b) encompass the same public
elementary school attendance zone, or a portion of the same zone, as
the proposed development site; or
(ii) any public housing authority
resident's council:
(a) with one or more members who
reside or who the applicant knows are likely to reside at the
development; and
(b) whose boundaries contain 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 for the
application, evaluated on the basis of written statements from the
state representative or the state senator that represents the
district containing 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.
(g) The department shall presume that the applicant has made
a good faith effort to obtain quantifiable community participation
and shall award the applicant the total number of points that may be
awarded under Subsection (b)(1)(B) if the application includes a
statement that an organization or other entity described by
Subsection (b)(1)(B) does not exist, as verified by:
(1) the presiding officer or authorized
representative of the governing body of the municipality in which
the development is to be located; or
(2) the clerk of the county in which the development is
to be located if the development is to be located outside a
municipality.
(h) Except as provided by this chapter, the department may
not adopt rules regarding quantifiable community participation in
relation to a development described in an application for housing
tax credits.
SECTION 5. The changes in law made by this Act relating to
applications for financial assistance administered by the Texas
Department of Housing and Community Affairs apply only to an
application filed on or after the effective date of this Act. An
application filed before the effective date of this Act is governed
by the law in effect on the date the application was filed, and the
former law is continued in effect for that purpose.
SECTION 6. This Act takes effect September 1, 2011.