Texas 2011 - 82nd Regular

Texas House Bill HB3716 Compare Versions

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1	1	82R22064 JAM-F
2	2	By: Guillen H.B. No. 3716
3	3	Substitute the following for H.B. No. 3716:
4	4	By: Mallory Caraway C.S.H.B. No. 3716
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the evaluation of applications for certain financial
10	10	assistance administered by the Texas Department of Housing and
11	11	Community Affairs.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 2306.1114(a), Government Code, is
14	14	amended to read as follows:
15	15	(a) Not later than the 14th day after the date an
16	16	application or a proposed application for housing funds described
17	17	by Section 2306.111 has been filed, the department shall provide
18	18	written notice of the filing of the application or proposed
19	19	application to the following persons:
20	20	(1) the United States representative who represents
21	21	the community containing the development described in the
22	22	application;
23	23	(2) members of the legislature who represent the
24	24	community containing the development described in the application;
25	25	(3) the presiding officer of the governing body of the
26	26	political subdivision containing the development described in the
27	27	application;
28	28	(4) any member of the governing body of a political
29	29	subdivision who represents the area containing the development
30	30	described in the application;
31	31	(5) the superintendent and the presiding officer of
32	32	the board of trustees of the school district containing the
33	33	development described in the application; and
34	34	(6) any neighborhood organizations on record with the
35	35	state, municipality, or county in which the development described
36	36	in the application is to be located and whose boundaries contain the
37	37	proposed development site.
38	38	SECTION 2. Section 2306.6704(b-1), Government Code, is
39	39	amended to read as follows:
40	40	(b-1) The preapplication process must require the applicant
41	41	to provide the department with evidence that the applicant has
42	42	notified the following entities with respect to the filing of the
43	43	application:
44	44	(1) any neighborhood organizations on record with the
45	45	state, municipality, or county in which the development is to be
46	46	located and whose boundaries contain the proposed development site;
47	47	(2) the superintendent and the presiding officer of
48	48	the board of trustees of the school district containing the
49	49	development;
50	50	(3) the presiding officer of the governing body of any
51	51	municipality containing the development and all elected members of
52	52	that body;
53	53	(4) the presiding officer of the governing body of the
54	54	county containing the development and all elected members of that
55	55	body; and
56	56	(5) the state senator and state representative of the
57	57	district containing the development.
58	58	SECTION 3. Section 2306.6705, Government Code, is amended
59	59	to read as follows:
60	60	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
61	61	application must contain at a minimum the following written,
62	62	detailed information in a form prescribed by the board:
63	63	(1) a description of:
64	64	(A) the financing plan for the development,
65	65	including any nontraditional financing arrangements;
66	66	(B) the use of funds with respect to the
67	67	development;
68	68	(C) the funding sources for the development,
69	69	including:
70	70	(i) construction, permanent, and bridge
71	71	loans; and
72	72	(ii) rents, operating subsidies, and
73	73	replacement reserves; and
74	74	(D) the commitment status of the funding sources
75	75	for the development;
76	76	(2) if syndication costs are included in the eligible
77	77	basis, a justification of the syndication costs for each cost
78	78	category by an attorney or accountant specializing in tax matters;
79	79	(3) from a syndicator or a financial consultant of the
80	80	applicant, an estimate of the amount of equity dollars expected to
81	81	be raised for the development in conjunction with the amount of
82	82	housing tax credits requested for allocation to the applicant,
83	83	including:
84	84	(A) pay-in schedules; and
85	85	(B) syndicator consulting fees and other
86	86	syndication costs;
87	87	(4) if rental assistance, an operating subsidy, or an
88	88	annuity is proposed for the development, any related contract or
89	89	other agreement securing those funds and an identification of:
90	90	(A) the source and annual amount of the funds;
91	91	(B) the number of units receiving the funds; and
92	92	(C) the term and expiration date of the contract
93	93	or other agreement;
94	94	(5) if the development is located within the
95	95	boundaries of a political subdivision with a zoning ordinance,
96	96	evidence in the form of a letter from the chief executive officer of
97	97	the political subdivision or from another local official with
98	98	jurisdiction over zoning matters that states that:
99	99	(A) the development is permitted under the
100	100	provisions of the ordinance that apply to the location of the
101	101	development; or
102	102	(B) the applicant is in the process of seeking
103	103	the appropriate zoning and has signed and provided to the political
104	104	subdivision a release agreeing to hold the political subdivision
105	105	and all other parties harmless in the event that the appropriate
106	106	zoning is denied;
107	107	(6) if an occupied development is proposed for
108	108	rehabilitation:
109	109	(A) an explanation of the process used to notify
110	110	and consult with the tenants in preparing the application;
111	111	(B) a relocation plan outlining:
112	112	(i) relocation requirements; and
113	113	(ii) a budget with an identified funding
114	114	source; and
115	115	(C) if applicable, evidence that the relocation
116	116	plan has been submitted to the appropriate local agency;
117	117	(7) a certification of the applicant's compliance with
118	118	appropriate state and federal laws, as required by other state law
119	119	or by the board;
120	120	(8) any other information required by the board in the
121	121	qualified allocation plan; and
122	122	(9) evidence that the applicant has notified the
123	123	following entities with respect to the filing of the application:
124	124	(A) any neighborhood organizations on record
125	125	with the state, municipality, or county in which the development is
126	126	to be located and whose boundaries contain the proposed development
127	127	site;
128	128	(B) the superintendent and the presiding officer
129	129	of the board of trustees of the school district containing the
130	130	development;
131	131	(C) the presiding officer of the governing body
132	132	of any municipality containing the development and all elected
133	133	members of that body;
134	134	(D) the presiding officer of the governing body
135	135	of the county containing the development and all elected members of
136	136	that body; and
137	137	(E) the state senator and state representative of
138	138	the district containing the development.
139	139	SECTION 4. Section 2306.6710, Government Code, is amended
140	140	by amending Subsection (b) and adding Subsection (g) to read as
141	141	follows:
142	142	(b) If an application satisfies the threshold criteria, the
143	143	department shall score and rank the application using a point
144	144	system that:
145	145	(1) prioritizes in descending order criteria
146	146	regarding:
147	147	(A) financial feasibility of the development
148	148	based on the supporting financial data required in the application
149	149	that will include a project underwriting pro forma from the
150	150	permanent or construction lender;
151	151	(B) quantifiable community participation with
152	152	respect to the development, evaluated on the basis of written
153	153	statements from any neighborhood organizations on record with the
154	154	state, municipality, or county in which the development is to be
155	155	located and whose boundaries contain the proposed development site;
156	156	(C) the income levels of tenants of the
157	157	development;
158	158	(D) the size and quality of the units;
159	159	(E) the commitment of development funding by
160	160	local political subdivisions;
161	161	(F) the level of community support for the
162	162	application, evaluated on the basis of written statements from the
163	163	state representative or the state senator that represents the
164	164	district containing the proposed development site;
165	165	(G) the rent levels of the units;
166	166	(H) the cost of the development by square foot;
167	167	(I) the services to be provided to tenants of the
168	168	development; and
169	169	(J) whether, at the time the complete application
170	170	is submitted or at any time within the two-year period preceding the
171	171	date of submission, the proposed development site is located in an
172	172	area declared to be a disaster under Section 418.014;
173	173	(2) uses criteria imposing penalties on applicants or
174	174	affiliates who have requested extensions of department deadlines
175	175	relating to developments supported by housing tax credit
176	176	allocations made in the application round preceding the current
177	177	round or a developer or principal of the applicant that has been
178	178	removed by the lender, equity provider, or limited partners for its
179	179	failure to perform its obligations under the loan documents or
180	180	limited partnership agreement; and
181	181	(3) encourages applicants to provide free notary
182	182	public service to the residents of the developments for which the
183	183	allocation of housing tax credits is requested.
184	184	(g) The department shall presume that the applicant has made
185	185	a good faith effort to obtain quantifiable community participation
186	186	and shall award the applicant the total number of points that may be
187	187	awarded under Subsection (b)(1)(B) if the application includes:
188	188	(1) a statement that an organization described by
189	189	Subsection (b)(1)(B) does not exist, as verified by:
190	190	(A) the presiding officer or authorized
191	191	representative of the governing body of the municipality in which
192	192	the development is to be located; or
193	193	(B) the clerk of the county in which the
194	194	development is to be located if the development is to be located
195	195	outside a municipality; and
196	196	(2) one or more written statements of support from:
197	197	(A) the county in which the development is to be
198	198	located;
199	199	(B) any municipality in which the development is
200	200	to be located; or
201	201	(C) a civic or community organization that
202	202	provides services to the area in which the development is to be
203	203	located.
204	204	SECTION 5. The changes in law made by this Act relating to
205	205	applications for financial assistance administered by the Texas
206	206	Department of Housing and Community Affairs apply only to an
207	207	application filed on or after the effective date of this Act. An
208	208	application filed before the effective date of this Act is governed
209	209	by the law in effect on the date the application was filed, and the
210	210	former law is continued in effect for that purpose.
211	211	SECTION 6. This Act takes effect September 1, 2011.