| 6 | 4 | | AN ACT |
|---|
| 7 | 5 | | relating to low income housing tax credits awarded for at-risk |
|---|
| 8 | 6 | | developments. |
|---|
| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 8 | | SECTION 1. Section 2306.6702(a)(5), Government Code, is |
|---|
| 11 | 9 | | amended to read as follows: |
|---|
| 12 | 10 | | (5) "At-risk development" means: |
|---|
| 13 | 11 | | (A) a development that: |
|---|
| 14 | 12 | | (i) has received the benefit of a subsidy in |
|---|
| 15 | 13 | | the form of a below-market interest rate loan, interest rate |
|---|
| 16 | 14 | | reduction, rental subsidy, Section 8 housing assistance payment, |
|---|
| 17 | 15 | | rental supplement payment, rental assistance payment, or equity |
|---|
| 18 | 16 | | incentive under the following federal laws, as applicable: |
|---|
| 19 | 17 | | (a) Sections 221(d)(3) and (5), |
|---|
| 20 | 18 | | National Housing Act (12 U.S.C. Section 1715l); |
|---|
| 21 | 19 | | (b) Section 236, National Housing Act |
|---|
| 22 | 20 | | (12 U.S.C. Section 1715z-1); |
|---|
| 23 | 21 | | (c) Section 202, Housing Act of 1959 |
|---|
| 24 | 22 | | (12 U.S.C. Section 1701q); |
|---|
| 25 | 23 | | (d) Section 101, Housing and Urban |
|---|
| 26 | 24 | | Development Act of 1965 (12 U.S.C. Section 1701s); |
|---|
| 27 | 25 | | (e) the Section 8 Additional |
|---|
| 28 | 26 | | Assistance Program for housing developments with HUD-Insured and |
|---|
| 29 | 27 | | HUD-Held Mortgages administered by the United States Department of |
|---|
| 30 | 28 | | Housing and Urban Development as specified by 24 C.F.R. Part 886, |
|---|
| 31 | 29 | | Subpart A; |
|---|
| 32 | 30 | | (f) the Section 8 Housing Assistance |
|---|
| 33 | 31 | | Program for the Disposition of HUD-Owned Projects administered by |
|---|
| 34 | 32 | | the United States Department of Housing and Urban Development as |
|---|
| 35 | 33 | | specified by 24 C.F.R. Part 886, Subpart C; |
|---|
| 36 | 34 | | (g) Sections 514, 515, and 516, |
|---|
| 37 | 35 | | Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or |
|---|
| 38 | 36 | | (h) Section 42, Internal Revenue Code |
|---|
| 39 | 37 | | of 1986 (26 U.S.C. Section 42); and |
|---|
| 40 | 38 | | (ii) is subject to the following |
|---|
| 41 | 39 | | conditions: |
|---|
| 42 | 40 | | (a) the stipulation to maintain |
|---|
| 43 | 41 | | affordability in the contract granting the subsidy is nearing |
|---|
| 44 | 42 | | expiration; or |
|---|
| 45 | 43 | | (b) the HUD-insured or HUD-held |
|---|
| 46 | 44 | | [federally insured] mortgage on the development is eligible for |
|---|
| 47 | 45 | | prepayment or is nearing the end of its term; or |
|---|
| 48 | 46 | | (B) a development that proposes to rehabilitate |
|---|
| 49 | 47 | | or reconstruct housing units that: |
|---|
| 50 | 48 | | (i) are owned by a public housing authority |
|---|
| 51 | 49 | | and receive assistance under Section 9, United States Housing Act |
|---|
| 52 | 50 | | of 1937 (42 U.S.C. Section 1437g); or |
|---|
| 53 | 51 | | (ii) received assistance under Section 9, |
|---|
| 54 | 52 | | United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: |
|---|
| 55 | 53 | | (a) are proposed to be disposed of or |
|---|
| 56 | 54 | | demolished by a public housing authority; or |
|---|
| 57 | 55 | | (b) have been disposed of or |
|---|
| 58 | 56 | | demolished by a public housing authority in the two-year period |
|---|
| 59 | 57 | | preceding the application for housing tax credits. |
|---|
| 60 | 58 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 61 | 59 | | to an application for low income housing tax credits that is |
|---|
| 62 | 60 | | submitted on or after the effective date of this Act. An |
|---|
| 63 | 61 | | application for low income housing tax credits that is submitted |
|---|
| 64 | 62 | | before the effective date of this Act is governed by the law in |
|---|
| 65 | 63 | | effect when the application was submitted, and the former law is |
|---|
| 66 | 64 | | continued in effect for that purpose. |
|---|
| 67 | 65 | | SECTION 3. This Act takes effect September 1, 2015. |
|---|