83R648 AJZ-D
By: Birdwell S.B. No. 444
A BILL TO BE ENTITLED
AN ACT
relating to the system by which an application for a low income
housing tax credit is scored.
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) the level of neighborhood support for
[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, which must be evaluated on the basis of:
(i) a resolution concerning the development
that is voted on and adopted by the governing body of a municipality
whose boundaries contain [written statements from the state
representative or the state senator that represents the district
containing] the proposed development site or by the commissioners
court of a county whose boundaries contain the proposed development
site; and
(ii) the commitment of development funding
by the municipality or county;
(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.
SECTION 2. Section 2306.6710(f), Government Code, is
repealed.
SECTION 3. The change in law made by this Act applies only
to an application for a low income housing tax credit 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 4. This Act takes effect September 1, 2013.