By: Collier H.B. No. 3535
A BILL TO BE ENTITLED
AN ACT
relating to low income housing tax credits awarded for proposed
developments in targeted areas for revitalization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.111(d-1), Government, is amended to
read as follows:
(d-1) In allocating low income housing tax credit
commitments under Subchapter DD, the department shall before
applying the regional allocation formula prescribed by Section
2306.1115, set aside for at-risk developments, as defined by
section 2306.6702, not less than the minimum amount of housing tax
credits required under Section 2306.6714 and revitalization
developments , as defined by section 2306.6702, not less than the
minimum amount of housing tax credits required under Section
2306.67141. Funds or credits are not required to be allocated
according to the regional allocation formula under Subsection (d)
if:
(1) the funds or credits are reserved for
contract-for-deed conversions or for set-asides mandated by state
or federal law and each contract-for-deed allocation or set-aside
allocation equals not more than 10 percent of the total allocation
of funds or credits for the applicable program;
(2) the funds or credits are allocated by the
department primarily to serve persons with disabilities; or
(3) the funds are housing trust funds administered by
the department under Sections 2306.201-2306.206 that are not
otherwise required to be set aside under state or federal law and do
not exceed $3 million for each programmed activity during each
application cycle.
SECTION 2. Subchapter DD, Section 2306.6702(a), Government
Code is amended by adding Subdivision (14-a) to read as follows:
(14-a) "Revitalization Development" means a development
that has received a resolution designating it as a Revitalization
Development from the municipality in which the development is
located and a commitment from the municipality in which the
development is located to expend municipal funds on the development
and is located in:
(1) an area for which the municipality has adopted a
plan to revitalize the area including a strategy to address blight
and vacant lots,
(2) an area in which the municipality has made
investment to construct new infrastructure or public buildings, and
(3) a census tract that has a:
(A) poverty rate above 15 percent; and
(B) medium household income equal to or less than
60 percent of the median household income for the municipality in
which the tract is located
SECTION 3. Subchapter DD, Chapter 2306, Government Code is
amended by adding Section 2306.67141 to read as follows:
Sec. 2306.67141. REVITALIZATION DEVELOPMENT SET ASIDE.
(a) To the maximum extent allowable under federal law, the
department shall set aside for eligible revitalization
developments not less than 10 percent of the housing tax credits
available for allocation in the calendar year.
(b) Any amount of housing tax credits set aside under this
section that remains after the initial allocation of housing tax
credit is available for allocation to any eligible applicant as
provided by the qualified allocation plan.
SECTION 4. Subchapter DD, Section 2306.6725, Government
Code, is amended by adding subsection (e) to read as follows:
(e) On awarding tax credit allocations for at-risk
developments and revitalization developments as defined in
2306.6702 the department shall not consider:
(1) the poverty rate or area median income for the
census tract in which the development is located, or
(2) the amount of blight within 3 miles of the
development.
SECTION 5. The change in law made by this Act applies only
to the allocation of low income housing tax credits for an
application cycle that begins on or after January 1, 2017. The
allocation of low income housing tax credits for an application
cycle that begins before January 1, 2017, 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 6. This Act takes effect September 1, 2015.