85R6932 JAM-D
By: González of El Paso H.B. No. 2405
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of low income housing tax credits to
developments in certain areas designated as rural.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6740, Government Code, is amended
to read as follows:
Sec. 2306.6740. DESIGNATION OF CERTAIN AREAS AS RURAL.
(a) The department by rule shall:
(1) provide for the designation by the department of
an area located within the boundaries of a primary metropolitan
statistical area or a metropolitan statistical area as a rural area
under Section 2306.6702(a)(12)(B) for purposes of receiving
housing tax credits administered by the department under this
subchapter; and
(2) designate the site of a proposed or existing
development as a rural area under Section 2306.6702(a)(12)(B) for
purposes of receiving housing tax credits allocated by the
department under Sections 2306.111(d-2) and (d-3) if the
development, before September 1, 2013, has been awarded or has
received financial assistance under Section 514, 515, or 516 of the
Housing Act of 1949 (42 U.S.C. Section 1484, 1485, or 1486).
(b) Rules adopted under this section must:
(1) provide procedures by which a political
subdivision or a census-designated place may apply for a rural
designation under Subsection (a)(1);
(2) provide guidelines for designating an area as
rural under Subsection (a)(1), including specifying:
(A) conditions under which a rural designation is
not appropriate, including the proximity of the area to or the
presence of major amenities commonly associated with urban or
suburban areas; and
(B) conditions under which a rural designation is
appropriate, including areas with low population density, the
proximity of the area to or the absence of major amenities commonly
associated with urban or suburban areas, a high level of
undeveloped land, a significant presence of unimproved roads, or
significant agricultural activity; and
(3) ensure that any housing tax credits allocated to a
designated rural area described by Subsection (a)(1) or (2) comply
with applicable federal requirements regarding that assistance.
(c) The department shall remove a rural area designation
under this section on receipt of a request submitted on behalf of
the affected political subdivision, census-designated place, or
development site, as applicable.
SECTION 2. Section 2306.111(d-4), Government Code, is
repealed.
SECTION 3. As soon as practicable after the effective date
of this Act, the Texas Department of Housing and Community Affairs
shall adopt rules to implement the changes in law made by this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.