84R9160 JAM-F
By: Riddle H.B. No. 1568
A BILL TO BE ENTITLED
AN ACT
relating to the evaluation of applications for certain financial
assistance administered by the Texas Department of Housing and
Community Affairs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.1114(a), Government Code, is
amended to read as follows:
(a) Not later than the 14th day after the date an
application or a proposed application for housing funds described
by Section 2306.111 has been filed, the department shall provide
written notice of the filing of the application or proposed
application to the following persons:
(1) the United States representative who represents
the community containing the development described in the
application;
(2) members of the legislature who represent the
community containing the development described in the application;
(3) the presiding officer of the governing body of the
political subdivision containing the development described in the
application;
(4) any member of the governing body of a political
subdivision who represents the area containing the development
described in the application;
(5) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development described in the application; [and]
(6) any neighborhood organization that is
[organizations] on record with the state or county in which the
development described in the application is to be located and that
has [whose] boundaries containing [contain] the proposed
development site or has a boundary located not more than 300 feet
from the proposed site; and
(7) any residence located not more than 300 feet from
the proposed development site.
SECTION 2. Section 2306.6704, Government Code, is amended
by amending Subsection (b-1) and adding Subsection (b-2) to read as
follows:
(b-1) The preapplication process must require the applicant
to provide the department with evidence that the applicant has
notified the following entities with respect to the filing of the
application:
(1) any neighborhood organization that is
[organizations] on record with the state or county in which the
development is to be located and that has [whose] boundaries
containing [contain] the proposed development site or has a
boundary located not more than 300 feet from the proposed site;
(2) the superintendent and the presiding officer of
the board of trustees of the school district containing the
development;
(3) the presiding officer of the governing body of any
municipality containing the development and all elected members of
that body;
(4) the presiding officer of the governing body of the
county containing the development and all elected members of that
body; [and]
(5) the state senator and state representative of the
district containing the development; and
(6) any residence located not more than 300 feet from
the proposed development site.
(b-2) Notification provided under Subsection (b-1) must
contain a description of the public hearing requirement under
Section 2306.67071.
SECTION 3. Section 2306.6705, Government Code, is amended
to read as follows:
Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. (a) An
application must contain at a minimum the following written,
detailed information in a form prescribed by the board:
(1) a description of:
(A) the financing plan for the development,
including any nontraditional financing arrangements;
(B) the use of funds with respect to the
development;
(C) the funding sources for the development,
including:
(i) construction, permanent, and bridge
loans; and
(ii) rents, operating subsidies, and
replacement reserves; and
(D) the commitment status of the funding sources
for the development;
(2) if syndication costs are included in the eligible
basis, a justification of the syndication costs for each cost
category by an attorney or accountant specializing in tax matters;
(3) from a syndicator or a financial consultant of the
applicant, an estimate of the amount of equity dollars expected to
be raised for the development in conjunction with the amount of
housing tax credits requested for allocation to the applicant,
including:
(A) pay-in schedules; and
(B) syndicator consulting fees and other
syndication costs;
(4) if rental assistance, an operating subsidy, or an
annuity is proposed for the development, any related contract or
other agreement securing those funds and an identification of:
(A) the source and annual amount of the funds;
(B) the number of units receiving the funds; and
(C) the term and expiration date of the contract
or other agreement;
(5) if the development is located within the
boundaries of a political subdivision with a zoning ordinance,
evidence in the form of a letter from the chief executive officer of
the political subdivision or from another local official with
jurisdiction over zoning matters that states that:
(A) the development is permitted under the
provisions of the ordinance that apply to the location of the
development; or
(B) the applicant is in the process of seeking
the appropriate zoning and has signed and provided to the political
subdivision a release agreeing to hold the political subdivision
and all other parties harmless in the event that the appropriate
zoning is denied;
(6) if an occupied development is proposed for
rehabilitation:
(A) an explanation of the process used to notify
and consult with the tenants in preparing the application;
(B) a relocation plan outlining:
(i) relocation requirements; and
(ii) a budget with an identified funding
source; and
(C) if applicable, evidence that the relocation
plan has been submitted to the appropriate local agency;
(7) a certification of the applicant's compliance with
appropriate state and federal laws, as required by other state law
or by the board;
(8) any other information required by the board in the
qualified allocation plan; and
(9) evidence that the applicant has notified the
following entities with respect to the filing of the application:
(A) any neighborhood organization that is
[organizations] on record with the state or county in which the
development is to be located and that has [whose] boundaries
containing [contain] the proposed development site or has a
boundary located not more than 300 feet from the proposed
development site;
(B) the superintendent and the presiding officer
of the board of trustees of the school district containing the
development;
(C) the presiding officer of the governing body
of any municipality containing the development and all elected
members of that body;
(D) the presiding officer of the governing body
of the county containing the development and all elected members of
that body; [and]
(E) the state senator and state representative of
the district containing the development; and
(F) any residence located not more than 300 feet
from the proposed development site.
(b) A notification provided under Subsection (a) must
contain a description of the public hearing requirement under
Section 2306.67071.
SECTION 4. Section 2306.67071, Government Code, is amended
by amending Subsections (a) and (c) and adding Subsection (c-1) to
read as follows:
(a) Before submitting to the department an application for
housing tax credits for developments financed through
competitively awarded tax credits or through the private activity
bond program, including private activity bonds issued by the
department, the Texas State Affordable Housing Corporation, or a
local issuer, an applicant must provide notice of the intent to file
the application to the state representative of the district
containing the proposed development site and:
(1) the governing body of a municipality in which the
proposed development site is to be located;
(2) subject to Subdivision (3), the commissioners
court of a county in which the proposed development site is to be
located, if the proposed site is to be located in an area of a county
that is not part of a municipality; or
(3) the commissioners court of a county in which the
proposed development site is to be located and the governing body of
the applicable municipality, if the proposed site is to be located
in the extraterritorial jurisdiction of a municipality.
(c) The board may not award a housing tax credit or issue a
determination notice with respect to [approve] an application for
housing tax credits for developments financed through
competitively awarded tax credits or through the private activity
bond program unless the applicant has submitted to the department a
certified copy of a resolution from each applicable governing body
described by Subsection (a) and a letter from each applicable state
representative described by Subsection (c-1). The resolution must
certify that:
(1) notice has been provided to each governing body as
required by Subsection (a);
(2) each governing body has had sufficient opportunity
to obtain a response from the applicant regarding any questions or
concerns about the proposed development;
(3) each governing body has held a hearing under
Subsection (b); and
(4) after due consideration of the information
provided by the applicant and public comment, including any comment
from neighborhood organizations, residents, or state
representatives required to be notified under this subchapter, the
governing body does not object to the proposed application.
(c-1) If a required resolution is adopted under Subsection
(c) by a commissioners court and none of the sitting commissioners
reside in the legislative district in which the proposed
development site is to be located, the applicant must also submit
from the state representative of the legislative district
containing the proposed development site a letter stating that the
representative does not object to the proposed application.
SECTION 5. Sections 2306.6710(b) and (f), Government Code,
are 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 a resolution
concerning the development that is voted on and adopted by the
following, as applicable:
[(i) the governing body of a municipality
in which the proposed development site is to be located;
[(ii) subject to Subparagraph (iii), the
commissioners court of a county in which the proposed development
site is to be located, if the proposed site is to be located in an
area of a county that is not part of a municipality; or
[(iii) the commissioners court of a county
in which the proposed development site is to be located and the
governing body of the applicable municipality, if the proposed site
is to be located in the extraterritorial jurisdiction of a
municipality;
[(C)] the income levels of tenants of the
development;
(C) [(D)] the size and quality of the units;
(D) [(E)] the commitment of development funding
by local political subdivisions;
(E) [(F)] the rent levels of the units;
(F) [(G)] the cost of the development by square
foot;
(G) [(H)] the services to be provided to tenants
of the development;
(H) [(I)] 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;
(I) [(J)] quantifiable community participation
with respect to the development, evaluated on the basis of written
statements from any neighborhood organization that is
[organizations] on record with the state or county in which the
development is to be located and that has [whose] boundaries
containing [contain] the proposed development site or has a
boundary located not more than 300 feet from the proposed site; and
(J) [(K)] the level of community support for the
application, evaluated on the basis of a written statement from the
state representative who represents the district containing the
proposed development site;
(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.
(f) In evaluating the level of community support for an
application under Subsection (b)(1)(J) [(b)(1)(K)], the department
shall award:
(1) positive points for positive written statements
received;
(2) negative points for negative written statements
received; and
(3) zero points for neutral statements received.
SECTION 6. The changes in law made by this Act apply only to
an application for financial assistance 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 submitted during an application cycle that began before
the effective date of this Act 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 7. This Act takes effect September 1, 2015.