83R132 JAM-F
By: Menendez H.B. No. 43
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the affordable assisted living
facility program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6710(b), Government Code, is
amended 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 any neighborhood organizations on record with the
state or county in which the development is to be located and 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) whether the proposed development is an
affordable assisted living facility developed under Section
2306.6739;
(J) the services to be provided to tenants of the
development; and
(K) [(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.
SECTION 2. Subchapter DD, Chapter 2306, Government Code, is
amended by adding Section 2306.6739 to read as follows:
Sec. 2306.6739. AFFORDABLE ASSISTED LIVING FACILITY
PROGRAM. (a) In this section:
(1) "Affordable assisted living facility" means a
facility that:
(A) is licensed, or will be required to be
licensed when constructed, under Chapter 247, Health and Safety
Code;
(B) offers residents their own separate,
private, and distinct living units;
(C) offers at least 60 percent of its affordable
assisted living units for rent by persons who are:
(i) 55 years of age or older; and
(ii) eligible to reside in developments
that are administered by the department and designed primarily to
serve the elderly; and
(D) integrates housing with health care,
personal care, and other supportive services.
(2) "Commission" means the Health and Human Services
Commission.
(3) "Controlling person" means a person who controls
an assisted living facility or other person as described by Section
247.005, Health and Safety Code.
(4) "Program" means the affordable assisted living
facility program established under this section.
(b) The department shall, in coordination with the
commission, establish the affordable assisted living facility
program to:
(1) facilitate the use of housing tax credits for new
construction or for reconstruction of affordable assisted living
facilities; and
(2) require the participation of controlling persons
who have at least two years of experience in providing assisted
living services at a facility located in this state that:
(A) is licensed under Chapter 247, Health and
Safety Code; and
(B) has a licensed capacity of at least 40 beds.
(c) The department shall set aside for affordable assisted
living facilities developed under the program in municipalities
with populations of at least 750,000 not less than 15 percent of the
housing tax credits available for allocation in the calendar years
2015, 2016, 2017, 2018, and 2019. Any amount of housing tax credits
set aside under this subsection that remains after the initial
allocation of housing tax credits is available for allocation to
any eligible applicant as provided by the qualified allocation
plan. This subsection expires September 1, 2020.
(d) The department or the commission, as appropriate, shall
apply for and actively pursue federal approval for the affordable
assisted living facility program by modifying existing
community-based programs in the state Medicaid plan. The executive
commissioner of the commission has the final authority to actively
pursue any waiver to the state Medicaid plan from the federal
Centers for Medicare and Medicaid Services or any other federal
agency as necessary to implement the program.
(e) Not later than December 31 of each year, the department
and the commission shall collaborate to submit a report to the
legislature regarding the implementation and effectiveness of the
program. The report must include an assessment of any cost savings
of the program and recommendations for expanding or modifying the
program. The reporting requirement imposed by this subsection
terminates at the end of any 10-year period in which no affordable
assisted living facility completed under the program is opened for
occupancy, regardless of whether any such facilities are opened
after that 10-year period has elapsed.
(f) The board shall, in consultation with the commission,
adopt rules necessary to implement this section, including any
eligibility requirements required for persons to reside in
affordable assisted living facilities.
SECTION 3. The change in law made by this Act in amending
Section 2306.6710(b), Government Code, applies only to the
allocation of low income housing tax credits for an application
cycle that begins on or after January 1, 2015. The allocation of
low income housing tax credits for an application cycle that begins
before January 1, 2015, is governed by the law in effect on the date
the application cycle began, and the former law is continued in
effect for that purpose.
SECTION 4. The board of the Texas Department of Housing and
Community Affairs shall adopt any rules required by Section
2306.6739, Government Code, as added by this Act, in conjunction
with the qualified allocation plan created for the 2015 application
cycle, and the department during that cycle shall begin accepting
applications for low income housing tax credits for the development
of facilities under Section 2306.6739, Government Code, as added by
this Act.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2013.
(b) Section 2306.6739(e), Government Code, as added by this
Act, takes effect January 1, 2017.