Texas 2017 - 85th Regular

Texas House Bill HB2633 Compare Versions

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

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1	1	85R10939 JAM-D
2	2	By: Dutton H.B. No. 2633
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the evaluation of applications for certain financial
8	8	assistance administered by the Texas Department of Housing and
9	9	Community Affairs.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2306.1114(a), Government Code, is
12	12	amended to read as follows:
13	13	(a) Not later than the 14th day after the date an
14	14	application or a proposed application for housing funds described
15	15	by Section 2306.111 has been filed, the department shall provide
16	16	written notice of the filing of the application or proposed
17	17	application to the following persons:
18	18	(1) the United States representative who represents
19	19	the community containing the development described in the
20	20	application;
21	21	(2) members of the legislature who represent the
22	22	community containing the development described in the application;
23	23	(3) the presiding officer of the governing body of the
24	24	political subdivision containing the development described in the
25	25	application;
26	26	(4) any member of the governing body of a political
27	27	subdivision who represents the area containing the development
28	28	described in the application;
29	29	(5) the superintendent and the presiding officer of
30	30	the board of trustees of the school district containing the
31	31	development described in the application; [and]
32	32	(6) any neighborhood organization that is
33	33	[organizations] on record with the state or county in which the
34	34	development described in the application is to be located and that
35	35	has [whose] boundaries containing [contain] the proposed
36	36	development site or has a boundary located not more than 15 miles
37	37	from the proposed site; and
38	38	(7) any residence located not more than 15 miles from
39	39	the proposed development site.
40	40	SECTION 2. Section 2306.6704(b-1), Government Code, is
41	41	amended to read as follows:
42	42	(b-1) The preapplication process must require the applicant
43	43	to provide the department with evidence that the applicant has
44	44	notified the following entities with respect to the filing of the
45	45	application:
46	46	(1) any neighborhood organization that is
47	47	[organizations] on record with the state or county in which the
48	48	development is to be located and that has [whose] boundaries
49	49	containing [contain] the proposed development site or has a
50	50	boundary located not more than 15 miles from the proposed site;
51	51	(2) the superintendent and the presiding officer of
52	52	the board of trustees of the school district containing the
53	53	development;
54	54	(3) the presiding officer of the governing body of any
55	55	municipality containing the development and all elected members of
56	56	that body;
57	57	(4) the presiding officer of the governing body of the
58	58	county containing the development and all elected members of that
59	59	body; [and]
60	60	(5) the state senator and state representative of the
61	61	district containing the development; and
62	62	(6) any residence located not more than 15 miles from
63	63	the proposed development site.
64	64	SECTION 3. Section 2306.6705, Government Code, is amended
65	65	to read as follows:
66	66	Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
67	67	application must contain at a minimum the following written,
68	68	detailed information in a form prescribed by the board:
69	69	(1) a description of:
70	70	(A) the financing plan for the development,
71	71	including any nontraditional financing arrangements;
72	72	(B) the use of funds with respect to the
73	73	development;
74	74	(C) the funding sources for the development,
75	75	including:
76	76	(i) construction, permanent, and bridge
77	77	loans; and
78	78	(ii) rents, operating subsidies, and
79	79	replacement reserves; and
80	80	(D) the commitment status of the funding sources
81	81	for the development;
82	82	(2) if syndication costs are included in the eligible
83	83	basis, a justification of the syndication costs for each cost
84	84	category by an attorney or accountant specializing in tax matters;
85	85	(3) from a syndicator or a financial consultant of the
86	86	applicant, an estimate of the amount of equity dollars expected to
87	87	be raised for the development in conjunction with the amount of
88	88	housing tax credits requested for allocation to the applicant,
89	89	including:
90	90	(A) pay-in schedules; and
91	91	(B) syndicator consulting fees and other
92	92	syndication costs;
93	93	(4) if rental assistance, an operating subsidy, or an
94	94	annuity is proposed for the development, any related contract or
95	95	other agreement securing those funds and an identification of:
96	96	(A) the source and annual amount of the funds;
97	97	(B) the number of units receiving the funds; and
98	98	(C) the term and expiration date of the contract
99	99	or other agreement;
100	100	(5) if the development is located within the
101	101	boundaries of a political subdivision with a zoning ordinance,
102	102	evidence in the form of a letter from the chief executive officer of
103	103	the political subdivision or from another local official with
104	104	jurisdiction over zoning matters that states that:
105	105	(A) the development is permitted under the
106	106	provisions of the ordinance that apply to the location of the
107	107	development; or
108	108	(B) the applicant is in the process of seeking
109	109	the appropriate zoning and has signed and provided to the political
110	110	subdivision a release agreeing to hold the political subdivision
111	111	and all other parties harmless in the event that the appropriate
112	112	zoning is denied;
113	113	(6) if an occupied development is proposed for
114	114	rehabilitation:
115	115	(A) an explanation of the process used to notify
116	116	and consult with the tenants in preparing the application;
117	117	(B) a relocation plan outlining:
118	118	(i) relocation requirements; and
119	119	(ii) a budget with an identified funding
120	120	source; and
121	121	(C) if applicable, evidence that the relocation
122	122	plan has been submitted to the appropriate local agency;
123	123	(7) a certification of the applicant's compliance with
124	124	appropriate state and federal laws, as required by other state law
125	125	or by the board;
126	126	(8) any other information required by the board in the
127	127	qualified allocation plan; and
128	128	(9) evidence that the applicant has notified the
129	129	following entities with respect to the filing of the application:
130	130	(A) any neighborhood organization that is
131	131	[organizations] on record with the state or county in which the
132	132	development is to be located and that has [whose] boundaries
133	133	containing [contain] the proposed development site or has a
134	134	boundary located not more than 15 miles from the proposed
135	135	development site;
136	136	(B) the superintendent and the presiding officer
137	137	of the board of trustees of the school district containing the
138	138	development;
139	139	(C) the presiding officer of the governing body
140	140	of any municipality containing the development and all elected
141	141	members of that body;
142	142	(D) the presiding officer of the governing body
143	143	of the county containing the development and all elected members of
144	144	that body; [and]
145	145	(E) the state senator and state representative of
146	146	the district containing the development; and
147	147	(F) any residence located not more than 15 miles
148	148	from the proposed development site.
149	149	SECTION 4. Section 2306.6710(b), Government Code, is
150	150	amended to read as follows:
151	151	(b) If an application satisfies the threshold criteria, the
152	152	department shall score and rank the application using a point
153	153	system that:
154	154	(1) prioritizes in descending order criteria
155	155	regarding:
156	156	(A) financial feasibility of the development
157	157	based on the supporting financial data required in the application
158	158	that will include a project underwriting pro forma from the
159	159	permanent or construction lender;
160	160	(B) quantifiable community participation with
161	161	respect to the development, evaluated on the basis of a resolution
162	162	concerning the development that is voted on and adopted by the
163	163	following, as applicable:
164	164	(i) the governing body of a municipality in
165	165	which the proposed development site is to be located;
166	166	(ii) subject to Subparagraph (iii), the
167	167	commissioners court of a county in which the proposed development
168	168	site is to be located, if the proposed site is to be located in an
169	169	area of a county that is not part of a municipality; or
170	170	(iii) the commissioners court of a county
171	171	in which the proposed development site is to be located and the
172	172	governing body of the applicable municipality, if the proposed site
173	173	is to be located in the extraterritorial jurisdiction of a
174	174	municipality;
175	175	(C) the income levels of tenants of the
176	176	development;
177	177	(D) the size and quality of the units;
178	178	(E) the rent levels of the units;
179	179	(F) the cost of the development by square foot;
180	180	(G) the services to be provided to tenants of the
181	181	development;
182	182	(H) whether, at the time the complete application
183	183	is submitted or at any time within the two-year period preceding the
184	184	date of submission, the proposed development site is located in an
185	185	area declared to be a disaster under Section 418.014;
186	186	(I) quantifiable community participation with
187	187	respect to the development, evaluated on the basis of written
188	188	statements from any neighborhood organization that is
189	189	[organizations] on record with the state or county in which the
190	190	development is to be located and that has [whose] boundaries
191	191	containing [contain] the proposed development site or has a
192	192	boundary located not more than 15 miles from the proposed site; and
193	193	(J) the level of community support for the
194	194	application, evaluated on the basis of a written statement from the
195	195	state representative who represents the district containing the
196	196	proposed development site;
197	197	(2) uses criteria imposing penalties on applicants or
198	198	affiliates who have requested extensions of department deadlines
199	199	relating to developments supported by housing tax credit
200	200	allocations made in the application round preceding the current
201	201	round or a developer or principal of the applicant that has been
202	202	removed by the lender, equity provider, or limited partners for its
203	203	failure to perform its obligations under the loan documents or
204	204	limited partnership agreement; and
205	205	(3) encourages applicants to provide free notary
206	206	public service to the residents of the developments for which the
207	207	allocation of housing tax credits is requested.
208	208	SECTION 5. The change in law made by this Act applies only
209	209	to an application for low income housing tax credits that is
210	210	submitted to the Texas Department of Housing and Community Affairs
211	211	during an application cycle that is based on the 2018 qualified
212	212	allocation plan or a subsequent plan adopted by the governing board
213	213	of the department. An application that is submitted during an
214	214	application cycle that is based on an earlier qualified allocation
215	215	plan is governed by the law in effect on the date the application
216	216	cycle began, and the former law is continued in effect for that
217	217	purpose.
218	218	SECTION 6. This Act takes effect September 1, 2017.