| 1 | 1 | | 85R1532 JAM-D |
|---|
| 2 | 2 | | By: Leach, Alvarado H.B. No. 616 |
|---|
| 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(b), Government Code, is |
|---|
| 11 | 11 | | amended to read as follows: |
|---|
| 12 | 12 | | (b) If an application satisfies the threshold criteria, the |
|---|
| 13 | 13 | | department shall score and rank the application using a point |
|---|
| 14 | 14 | | system that: |
|---|
| 15 | 15 | | (1) prioritizes in descending order criteria |
|---|
| 16 | 16 | | regarding: |
|---|
| 17 | 17 | | (A) financial feasibility of the development |
|---|
| 18 | 18 | | based on the supporting financial data required in the application |
|---|
| 19 | 19 | | that will include a project underwriting pro forma from the |
|---|
| 20 | 20 | | permanent or construction lender; |
|---|
| 21 | 21 | | (B) quantifiable community participation with |
|---|
| 22 | 22 | | respect to the development, evaluated on the basis of a resolution |
|---|
| 23 | 23 | | concerning the development that is voted on and adopted by the |
|---|
| 24 | 24 | | following, as applicable: |
|---|
| 25 | 25 | | (i) the governing body of a municipality in |
|---|
| 26 | 26 | | which the proposed development site is to be located; |
|---|
| 27 | 27 | | (ii) subject to Subparagraph (iii), the |
|---|
| 28 | 28 | | commissioners court of a county in which the proposed development |
|---|
| 29 | 29 | | site is to be located, if the proposed site is to be located in an |
|---|
| 30 | 30 | | area of a county that is not part of a municipality; or |
|---|
| 31 | 31 | | (iii) the commissioners court of a county |
|---|
| 32 | 32 | | in which the proposed development site is to be located and the |
|---|
| 33 | 33 | | governing body of the applicable municipality, if the proposed site |
|---|
| 34 | 34 | | is to be located in the extraterritorial jurisdiction of a |
|---|
| 35 | 35 | | municipality; |
|---|
| 36 | 36 | | (C) the income levels of tenants of the |
|---|
| 37 | 37 | | development; |
|---|
| 38 | 38 | | (D) the size and quality of the units; |
|---|
| 39 | 39 | | (E) the rent levels of the units; |
|---|
| 40 | 40 | | (F) the cost of the development by square foot; |
|---|
| 41 | 41 | | (G) the services to be provided to tenants of the |
|---|
| 42 | 42 | | development; |
|---|
| 43 | 43 | | (H) whether, at the time the complete application |
|---|
| 44 | 44 | | is submitted or at any time within the two-year period preceding the |
|---|
| 45 | 45 | | date of submission, the proposed development site is located in an |
|---|
| 46 | 46 | | area declared to be a disaster under Section 418.014; and |
|---|
| 47 | 47 | | (I) quantifiable community participation with |
|---|
| 48 | 48 | | respect to the development, evaluated on the basis of written |
|---|
| 49 | 49 | | statements from any neighborhood organizations on record with the |
|---|
| 50 | 50 | | state or county in which the development is to be located and whose |
|---|
| 51 | 51 | | boundaries contain the proposed development site; [and |
|---|
| 52 | 52 | | [(J) the level of community support for the |
|---|
| 53 | 53 | | application, evaluated on the basis of a written statement from the |
|---|
| 54 | 54 | | state representative who represents the district containing the |
|---|
| 55 | 55 | | proposed development site;] |
|---|
| 56 | 56 | | (2) uses criteria imposing penalties on applicants or |
|---|
| 57 | 57 | | affiliates who have requested extensions of department deadlines |
|---|
| 58 | 58 | | relating to developments supported by housing tax credit |
|---|
| 59 | 59 | | allocations made in the application round preceding the current |
|---|
| 60 | 60 | | round or a developer or principal of the applicant that has been |
|---|
| 61 | 61 | | removed by the lender, equity provider, or limited partners for its |
|---|
| 62 | 62 | | failure to perform its obligations under the loan documents or |
|---|
| 63 | 63 | | limited partnership agreement; and |
|---|
| 64 | 64 | | (3) encourages applicants to provide free notary |
|---|
| 65 | 65 | | public service to the residents of the developments for which the |
|---|
| 66 | 66 | | allocation of housing tax credits is requested. |
|---|
| 67 | 67 | | SECTION 2. Section 2306.6718(b), Government Code, is |
|---|
| 68 | 68 | | amended to read as follows: |
|---|
| 69 | 69 | | (b) The department shall provide the elected officials with |
|---|
| 70 | 70 | | an opportunity to comment on the application during the application |
|---|
| 71 | 71 | | evaluation process [provided by Section 2306.6710] and shall |
|---|
| 72 | 72 | | consider those comments in evaluating applications [under that |
|---|
| 73 | 73 | | section]. |
|---|
| 74 | 74 | | SECTION 3. Section 2306.6710(f), Government Code, is |
|---|
| 75 | 75 | | repealed. |
|---|
| 76 | 76 | | SECTION 4. The change in law made by this Act applies only |
|---|
| 77 | 77 | | to an application for a low income housing tax credit filed on or |
|---|
| 78 | 78 | | after the effective date of this Act. An application filed before |
|---|
| 79 | 79 | | the effective date of this Act is governed by the law in effect on |
|---|
| 80 | 80 | | the date the application was filed, and the former law is continued |
|---|
| 81 | 81 | | in effect for that purpose. |
|---|
| 82 | 82 | | SECTION 5. This Act takes effect September 1, 2017. |
|---|