By: Watson S.B. No. 1315
A BILL TO BE ENTITLED
AN ACT
relating to definition of an at-risk development for the low income
housing tax credit program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6702(a)(5), Government Code, is
amended to read as follows:
(5) "At-risk development" means:
(A) a development that:
(i) has received the benefit of a subsidy in the
form of a below-market interest rate loan, interest rate reduction,
rental subsidy, Section 8 housing assistance payment, rental
supplement payment, rental assistance payment, or equity incentive
under the following federal laws, as applicable:
(a) Sections 221(d)(3) and (5), National
Housing Act (12 U.S.C. Section 1715l);
(b) Section 236, National Housing Act (12
U.S.C. Section 1715z-1);
(c) Section 202, Housing Act of 1959 (12
U.S.C. Section 1701q);
(d) Section 101, Housing and Urban
Development Act of 1965 (12 U.S.C. Section 1701s);
(e) the Section 8 Additional Assistance
Program for housing developments with HUD-Insured and HUD-Held
Mortgages administered by the United States Department of Housing
and Urban Development as specified by 24 C.F.R. Part 886, Subpart A;
(f) the Section 8 Housing Assistance
Program for the Disposition of HUD-Owned Projects administered by
the United States Department of Housing and Urban Development as
specified by 24 C.F.R. Part 886, Subpart C;
(g) Sections 514, 515, and 516, Housing Act
of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or
(h) Section 42, Internal Revenue Code of
1986 (26 U.S.C. Section 42); and
(ii) is subject to the following conditions:
(a) the stipulation to maintain
affordability in the contract granting the subsidy is nearing
expiration; or
(b) the federally insured or HUD-Held
mortgage on the development is eligible for prepayment or is
nearing the end of its term; or
(B) a development that proposes to rehabilitate or
reconstruct housing units that:
(i) are owned by a public housing authority and
receive assistance under Section 9, United States Housing Act of
1937 (42 U.S.C. Section 1437g); or
(ii) received assistance under Section 9, United
States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
(a) are proposed to be disposed of or
demolished by a public housing authority; or
(b) have been disposed of or demolished by a
public housing authority in the two-year period preceding the
application for housing tax credits.
SECTION 2. This Act takes effect September 1, 2015.