83R10476 JAM-D
By: Isaac H.B. No. 3779
A BILL TO BE ENTITLED
AN ACT
relating to affordable housing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1231, Government Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. BOARD APPROVAL OF ISSUANCE OF CERTAIN LOCAL
SECURITIES
Sec. 1231.051. APPROVAL OF ISSUANCE. The board shall
approve the issuance of a security issued under Subchapter E,
Chapter 394, Local Government Code, if, after examining the
application and documents or items of information required by the
board, the board determines that the issuance is advisable.
SECTION 2. 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 3. 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 4. Subchapter E, Chapter 394, Local Government
Code, is amended by adding Sections 394.058 and 394.059 to read as
follows:
Sec. 394.058. APPROVAL OF BONDS BY BOND REVIEW BOARD.
Notwithstanding any other law, a bond may not be issued under this
chapter unless approved by the Bond Review Board.
Sec. 394.059. APPROVAL OF BONDS BY LOCAL GOVERNMENT. (a)
Notwithstanding Chapter 1372, Government Code, or any other law, a
private activity bond used to finance all or part of a residential
development under this chapter may not be issued unless the
issuance is approved by all local governments whose boundaries
contain the development.
(b) A local government whose boundaries contain a proposed
residential development with respect to which the issuance of a
private activity bond is sought:
(1) must consider any public comment made at a hearing
held required by the Tax Equity and Fiscal Responsibility Act of
1982 (TEFRA); and
(2) following the hearing, may refuse to approve the
issuance of a private activity bond for purposes of financing the
development.
SECTION 5. Section 11.182, Tax Code, is amended by adding
Subsection (h-1) to read as follows:
(h-1) Money received by a school district from a payment in
lieu of taxes made under Subsection (h)(1)(A) is subject to the same
limitations and restrictions as ad valorem tax revenue received by
the district.
SECTION 6. Section 394.9025(b), Local Government Code, is
repealed.
SECTION 7. The change in law made by this Act in amending
Sections 2306.67021 and 2306.6710, Government Code, 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 8. This Act takes effect September 1, 2013.