83R10724 JAM-D
By: Isaac H.B. No. 3775
A BILL TO BE ENTITLED
AN ACT
relating to the availability of low-income housing tax credits for
developments supported with private activity bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.67021, Government Code, is amended
to read as follows:
Sec. 2306.67021. APPLICABILITY OF SUBCHAPTER. To the
extent permitted by federal law, this [Except as provided by
Section 2306.6703, this] subchapter applies [does not apply] to the
allocation of housing tax credits to developments financed through
the private activity bond program in the same way this subchapter
applies to the allocation of housing tax credits to developments
not financed through the private activity bond program.
SECTION 2. Section 2306.6710, Government Code, is amended
by amending Subsection (d) and adding Subsection (d-1) to read as
follows:
(d) Subject to Subsection (d-1), the [The] department shall
underwrite the applications ranked under Subsection (b) beginning
with the applications with the highest scores in each region
described by Section 2306.111(d) and in each set-aside category
described in the qualified allocation plan. Based on application
rankings, the department shall continue to underwrite applications
until the department has processed enough applications satisfying
the department's underwriting criteria to enable the allocation of
all available housing tax credits according to regional allocation
goals and set-aside categories. To enable the board to establish an
applications waiting list under Section 2306.6711, the department
shall underwrite as many additional applications as the board
considers necessary to ensure that all available housing tax
credits are allocated within the period required by law. The
department shall underwrite an application to determine the
financial feasibility of the development and an appropriate level
of housing tax credits. In determining an appropriate level of
housing tax credits, the department shall evaluate the cost of the
development based on acceptable cost parameters as adjusted for
inflation and as established by historical final cost
certifications of all previous housing tax credit allocations for:
(1) the county in which the development is to be
located;
(2) if certifications are unavailable under
Subdivision (1), the metropolitan statistical area in which the
development is to be located; or
(3) if certifications are unavailable under
Subdivisions (1) and (2), the uniform state service region in which
the development is to be located.
(d-1) A development to be financed through the private
activity bond program is eligible for housing tax credits only if,
with respect to other applications received in the subregion:
(1) for new construction, the application received a
score equal to or greater than the highest score awarded to any
application for housing tax credits for a development that will not
be supported through the bond program; or
(2) for rehabilitation or reconstruction, the
application received a score not lower than the lowest score
awarded to any application for housing tax credits for a
development that will not be supported through the bond program.
SECTION 3. The change in law made by this Act applies only
to an application for low income housing tax credits that is
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 that is submitted during an
application cycle that began before the effective date of this Act
is governed by the law in effect at the time the application cycle
began, and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2013.