By: Watson, et al. S.B. No. 1315
(Anchia)
A BILL TO BE ENTITLED
AN ACT
relating to low income housing tax credits awarded for at-risk
developments.
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 HUD-insured or HUD-held
[federally insured] 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. The change in law made by this Act applies only
to an application for low income housing tax credits that is
submitted on or after the effective date of this Act. An
application for low income housing tax credits that is submitted
before the effective date of this Act is governed by the law in
effect when the application was submitted, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.