Texas 2015 - 84th Regular

Texas House Bill HB1568 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R9160 JAM-F
2	2	By: Riddle H.B. No. 1568
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the evaluation of applications for certain financial
8	8	assistance administered by the Texas Department of Housing and
9	9	Community Affairs.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2306.1114(a), Government Code, is
12	12	amended to read as follows:
13	13	(a) Not later than the 14th day after the date an
14	14	application or a proposed application for housing funds described
15	15	by Section 2306.111 has been filed, the department shall provide
16	16	written notice of the filing of the application or proposed
17	17	application to the following persons:
18	18	(1) the United States representative who represents
19	19	the community containing the development described in the
20	20	application;
21	21	(2) members of the legislature who represent the
22	22	community containing the development described in the application;
23	23	(3) the presiding officer of the governing body of the
24	24	political subdivision containing the development described in the
25	25	application;
26	26	(4) any member of the governing body of a political
27	27	subdivision who represents the area containing the development
28	28	described in the application;
29	29	(5) the superintendent and the presiding officer of
30	30	the board of trustees of the school district containing the
31	31	development described in the application; [and]
32	32	(6) any neighborhood organization that is
33	33	[organizations] on record with the state or county in which the
34	34	development described in the application is to be located and that
35	35	has [whose] boundaries containing [contain] the proposed
36	36	development site or has a boundary located not more than 300 feet
37	37	from the proposed site; and
38	38	(7) any residence located not more than 300 feet from
39	39	the proposed development site.
40	40	SECTION 2. Section 2306.6704, Government Code, is amended
41	41	by amending Subsection (b-1) and adding Subsection (b-2) to read as
42	42	follows:
43	43	(b-1) The preapplication process must require the applicant
44	44	to provide the department with evidence that the applicant has
45	45	notified the following entities with respect to the filing of the
46	46	application:
47	47	(1) any neighborhood organization that is
48	48	[organizations] on record with the state or county in which the
49	49	development is to be located and that has [whose] boundaries
50	50	containing [contain] the proposed development site or has a
51	51	boundary located not more than 300 feet from the proposed site;
52	52	(2) the superintendent and the presiding officer of
53	53	the board of trustees of the school district containing the
54	54	development;
55	55	(3) the presiding officer of the governing body of any
56	56	municipality containing the development and all elected members of
57	57	that body;
58	58	(4) the presiding officer of the governing body of the
59	59	county containing the development and all elected members of that
60	60	body; [and]
61	61	(5) the state senator and state representative of the
62	62	district containing the development; and
63	63	(6) any residence located not more than 300 feet from
64	64	the proposed development site.
65	65	(b-2) Notification provided under Subsection (b-1) must
66	66	contain a description of the public hearing requirement under
67	67	Section 2306.67071.
68	68	SECTION 3. Section 2306.6705, Government Code, is amended
69	69	to read as follows:
70	70	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. (a) An
71	71	application must contain at a minimum the following written,
72	72	detailed information in a form prescribed by the board:
73	73	(1) a description of:
74	74	(A) the financing plan for the development,
75	75	including any nontraditional financing arrangements;
76	76	(B) the use of funds with respect to the
77	77	development;
78	78	(C) the funding sources for the development,
79	79	including:
80	80	(i) construction, permanent, and bridge
81	81	loans; and
82	82	(ii) rents, operating subsidies, and
83	83	replacement reserves; and
84	84	(D) the commitment status of the funding sources
85	85	for the development;
86	86	(2) if syndication costs are included in the eligible
87	87	basis, a justification of the syndication costs for each cost
88	88	category by an attorney or accountant specializing in tax matters;
89	89	(3) from a syndicator or a financial consultant of the
90	90	applicant, an estimate of the amount of equity dollars expected to
91	91	be raised for the development in conjunction with the amount of
92	92	housing tax credits requested for allocation to the applicant,
93	93	including:
94	94	(A) pay-in schedules; and
95	95	(B) syndicator consulting fees and other
96	96	syndication costs;
97	97	(4) if rental assistance, an operating subsidy, or an
98	98	annuity is proposed for the development, any related contract or
99	99	other agreement securing those funds and an identification of:
100	100	(A) the source and annual amount of the funds;
101	101	(B) the number of units receiving the funds; and
102	102	(C) the term and expiration date of the contract
103	103	or other agreement;
104	104	(5) if the development is located within the
105	105	boundaries of a political subdivision with a zoning ordinance,
106	106	evidence in the form of a letter from the chief executive officer of
107	107	the political subdivision or from another local official with
108	108	jurisdiction over zoning matters that states that:
109	109	(A) the development is permitted under the
110	110	provisions of the ordinance that apply to the location of the
111	111	development; or
112	112	(B) the applicant is in the process of seeking
113	113	the appropriate zoning and has signed and provided to the political
114	114	subdivision a release agreeing to hold the political subdivision
115	115	and all other parties harmless in the event that the appropriate
116	116	zoning is denied;
117	117	(6) if an occupied development is proposed for
118	118	rehabilitation:
119	119	(A) an explanation of the process used to notify
120	120	and consult with the tenants in preparing the application;
121	121	(B) a relocation plan outlining:
122	122	(i) relocation requirements; and
123	123	(ii) a budget with an identified funding
124	124	source; and
125	125	(C) if applicable, evidence that the relocation
126	126	plan has been submitted to the appropriate local agency;
127	127	(7) a certification of the applicant's compliance with
128	128	appropriate state and federal laws, as required by other state law
129	129	or by the board;
130	130	(8) any other information required by the board in the
131	131	qualified allocation plan; and
132	132	(9) evidence that the applicant has notified the
133	133	following entities with respect to the filing of the application:
134	134	(A) any neighborhood organization that is
135	135	[organizations] on record with the state or county in which the
136	136	development is to be located and that has [whose] boundaries
137	137	containing [contain] the proposed development site or has a
138	138	boundary located not more than 300 feet from the proposed
139	139	development site;
140	140	(B) the superintendent and the presiding officer
141	141	of the board of trustees of the school district containing the
142	142	development;
143	143	(C) the presiding officer of the governing body
144	144	of any municipality containing the development and all elected
145	145	members of that body;
146	146	(D) the presiding officer of the governing body
147	147	of the county containing the development and all elected members of
148	148	that body; [and]
149	149	(E) the state senator and state representative of
150	150	the district containing the development; and
151	151	(F) any residence located not more than 300 feet
152	152	from the proposed development site.
153	153	(b) A notification provided under Subsection (a) must
154	154	contain a description of the public hearing requirement under
155	155	Section 2306.67071.
156	156	SECTION 4. Section 2306.67071, Government Code, is amended
157	157	by amending Subsections (a) and (c) and adding Subsection (c-1) to
158	158	read as follows:
159	159	(a) Before submitting to the department an application for
160	160	housing tax credits for developments financed through
161	161	competitively awarded tax credits or through the private activity
162	162	bond program, including private activity bonds issued by the
163	163	department, the Texas State Affordable Housing Corporation, or a
164	164	local issuer, an applicant must provide notice of the intent to file
165	165	the application to the state representative of the district
166	166	containing the proposed development site and:
167	167	(1) the governing body of a municipality in which the
168	168	proposed development site is to be located;
169	169	(2) subject to Subdivision (3), the commissioners
170	170	court of a county in which the proposed development site is to be
171	171	located, if the proposed site is to be located in an area of a county
172	172	that is not part of a municipality; or
173	173	(3) the commissioners court of a county in which the
174	174	proposed development site is to be located and the governing body of
175	175	the applicable municipality, if the proposed site is to be located
176	176	in the extraterritorial jurisdiction of a municipality.
177	177	(c) The board may not award a housing tax credit or issue a
178	178	determination notice with respect to [approve] an application for
179	179	housing tax credits for developments financed through
180	180	competitively awarded tax credits or through the private activity
181	181	bond program unless the applicant has submitted to the department a
182	182	certified copy of a resolution from each applicable governing body
183	183	described by Subsection (a) and a letter from each applicable state
184	184	representative described by Subsection (c-1). The resolution must
185	185	certify that:
186	186	(1) notice has been provided to each governing body as
187	187	required by Subsection (a);
188	188	(2) each governing body has had sufficient opportunity
189	189	to obtain a response from the applicant regarding any questions or
190	190	concerns about the proposed development;
191	191	(3) each governing body has held a hearing under
192	192	Subsection (b); and
193	193	(4) after due consideration of the information
194	194	provided by the applicant and public comment, including any comment
195	195	from neighborhood organizations, residents, or state
196	196	representatives required to be notified under this subchapter, the
197	197	governing body does not object to the proposed application.
198	198	(c-1) If a required resolution is adopted under Subsection
199	199	(c) by a commissioners court and none of the sitting commissioners
200	200	reside in the legislative district in which the proposed
201	201	development site is to be located, the applicant must also submit
202	202	from the state representative of the legislative district
203	203	containing the proposed development site a letter stating that the
204	204	representative does not object to the proposed application.
205	205	SECTION 5. Sections 2306.6710(b) and (f), Government Code,
206	206	are amended to read as follows:
207	207	(b) If an application satisfies the threshold criteria, the
208	208	department shall score and rank the application using a point
209	209	system that:
210	210	(1) prioritizes in descending order criteria
211	211	regarding:
212	212	(A) financial feasibility of the development
213	213	based on the supporting financial data required in the application
214	214	that will include a project underwriting pro forma from the
215	215	permanent or construction lender;
216	216	(B) [quantifiable community participation with
217	217	respect to the development, evaluated on the basis of a resolution
218	218	concerning the development that is voted on and adopted by the
219	219	following, as applicable:
220	220	[(i) the governing body of a municipality
221	221	in which the proposed development site is to be located;
222	222	[(ii) subject to Subparagraph (iii), the
223	223	commissioners court of a county in which the proposed development
224	224	site is to be located, if the proposed site is to be located in an
225	225	area of a county that is not part of a municipality; or
226	226	[(iii) the commissioners court of a county
227	227	in which the proposed development site is to be located and the
228	228	governing body of the applicable municipality, if the proposed site
229	229	is to be located in the extraterritorial jurisdiction of a
230	230	municipality;
231	231	[(C)] the income levels of tenants of the
232	232	development;
233	233	(C) [(D)] the size and quality of the units;
234	234	(D) [(E)] the commitment of development funding
235	235	by local political subdivisions;
236	236	(E) [(F)] the rent levels of the units;
237	237	(F) [(G)] the cost of the development by square
238	238	foot;
239	239	(G) [(H)] the services to be provided to tenants
240	240	of the development;
241	241	(H) [(I)] whether, at the time the complete
242	242	application is submitted or at any time within the two-year period
243	243	preceding the date of submission, the proposed development site is
244	244	located in an area declared to be a disaster under Section 418.014;
245	245	(I) [(J)] quantifiable community participation
246	246	with respect to the development, evaluated on the basis of written
247	247	statements from any neighborhood organization that is
248	248	[organizations] on record with the state or county in which the
249	249	development is to be located and that has [whose] boundaries
250	250	containing [contain] the proposed development site or has a
251	251	boundary located not more than 300 feet from the proposed site; and
252	252	(J) [(K)] the level of community support for the
253	253	application, evaluated on the basis of a written statement from the
254	254	state representative who represents the district containing the
255	255	proposed development site;
256	256	(2) uses criteria imposing penalties on applicants or
257	257	affiliates who have requested extensions of department deadlines
258	258	relating to developments supported by housing tax credit
259	259	allocations made in the application round preceding the current
260	260	round or a developer or principal of the applicant that has been
261	261	removed by the lender, equity provider, or limited partners for its
262	262	failure to perform its obligations under the loan documents or
263	263	limited partnership agreement; and
264	264	(3) encourages applicants to provide free notary
265	265	public service to the residents of the developments for which the
266	266	allocation of housing tax credits is requested.
267	267	(f) In evaluating the level of community support for an
268	268	application under Subsection (b)(1)(J) [(b)(1)(K)], the department
269	269	shall award:
270	270	(1) positive points for positive written statements
271	271	received;
272	272	(2) negative points for negative written statements
273	273	received; and
274	274	(3) zero points for neutral statements received.
275	275	SECTION 6. The changes in law made by this Act apply only to
276	276	an application for financial assistance submitted to the Texas
277	277	Department of Housing and Community Affairs during an application
278	278	cycle that begins on or after the effective date of this Act. An
279	279	application submitted during an application cycle that began before
280	280	the effective date of this Act is governed by the law in effect on
281	281	the date the application cycle began, and the former law is
282	282	continued in effect for that purpose.
283	283	SECTION 7. This Act takes effect September 1, 2015.