Texas 2017 - 85th Regular

Texas House Bill HB1653 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R9821 JAM-D
2	2	By: Swanson H.B. No. 1653
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the system by which an application for a low income
8	8	housing tax credit is scored.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2306.6710, Government Code, is amended
11	11	by amending Subsections (b) and (f) and adding Subsection (g) to
12	12	read as follows:
13	13	(b) If an application satisfies the threshold criteria, the
14	14	department shall score and rank the application using a point
15	15	system that:
16	16	(1) prioritizes in descending order criteria
17	17	regarding:
18	18	(A) financial feasibility of the development
19	19	based on the supporting financial data required in the application
20	20	that will include a project underwriting pro forma from the
21	21	permanent or construction lender;
22	22	(B) quantifiable community participation with
23	23	respect to the development, evaluated on the basis of a resolution
24	24	concerning the development that is voted on and adopted by the
25	25	following, as applicable:
26	26	(i) the governing body of a municipality in
27	27	which the proposed development site is to be located;
28	28	(ii) subject to Subparagraph (iii), the
29	29	commissioners court of a county in which the proposed development
30	30	site is to be located, if the proposed site is to be located in an
31	31	area of a county that is not part of a municipality; or
32	32	(iii) the commissioners court of a county
33	33	in which the proposed development site is to be located and the
34	34	governing body of the applicable municipality, if the proposed site
35	35	is to be located in the extraterritorial jurisdiction of a
36	36	municipality;
37	37	(C) the income levels of tenants of the
38	38	development;
39	39	(D) the size and quality of the units;
40	40	(E) the rent levels of the units;
41	41	(F) the level of community support for the
42	42	application, evaluated on the basis of a written statement from the
43	43	state representative who represents the district containing the
44	44	proposed development site;
45	45	(G) the cost of the development by square foot;
46	46	(H) [(G)] the services to be provided to tenants
47	47	of the development;
48	48	(I) [(H)] whether, at the time the complete
49	49	application is submitted or at any time within the two-year period
50	50	preceding the date of submission, the proposed development site is
51	51	located in an area declared to be a disaster under Section 418.014;
52	52	and
53	53	(J) [(I)] quantifiable community participation
54	54	with respect to the development, evaluated on the basis of written
55	55	statements from any neighborhood organizations on record with the
56	56	state or county in which the development is to be located and whose
57	57	boundaries contain the proposed development site[; and
58	58	[(J) the level of community support for the
59	59	application, evaluated on the basis of a written statement from the
60	60	state representative who represents the district containing the
61	61	proposed development site];
62	62	(2) uses criteria imposing penalties on applicants or
63	63	affiliates who have requested extensions of department deadlines
64	64	relating to developments supported by housing tax credit
65	65	allocations made in the application round preceding the current
66	66	round or a developer or principal of the applicant that has been
67	67	removed by the lender, equity provider, or limited partners for its
68	68	failure to perform its obligations under the loan documents or
69	69	limited partnership agreement; and
70	70	(3) encourages applicants to provide free notary
71	71	public service to the residents of the developments for which the
72	72	allocation of housing tax credits is requested.
73	73	(f) In evaluating the level of community support for an
74	74	application under Subsection (b)(1)(F) [(b)(1)(J)], the department
75	75	shall award:
76	76	(1) positive points for positive written statements
77	77	received;
78	78	(2) negative points for negative written statements
79	79	received; and
80	80	(3) zero points for neutral written statements
81	81	received.
82	82	(g) For a proposed development that is to be located in an
83	83	unincorporated area of an urban area, the department shall award an
84	84	additional one-third of the maximum number of positive or negative
85	85	points that may be awarded under Subsection (f)(1) or (2), as
86	86	applicable, if the application is the subject of positive or
87	87	negative written statements under those subsections.
88	88	SECTION 2. The change in law made by this Act applies only
89	89	to an application for low income housing tax credits that is
90	90	submitted to the Texas Department of Housing and Community Affairs
91	91	during an application cycle that is based on the 2018 qualified
92	92	allocation plan or a subsequent plan adopted by the governing board
93	93	of the department under Section 2306.67022, Government Code. An
94	94	application that is submitted during an application cycle that is
95	95	based on an earlier qualified allocation plan is governed by the law
96	96	in effect on the date the application cycle began, and the former
97	97	law is continued in effect for that purpose.
98	98	SECTION 3. This Act takes effect September 1, 2017.