| 1 | 1 | | By: Watson S.B. No. 990 |
|---|
| 2 | 2 | | (Arévalo) |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the requirements for an application for a low income |
|---|
| 8 | 8 | | housing tax credit allocation from the nonprofit set-aside. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 2306.6706(a), Government Code, is |
|---|
| 11 | 11 | | amended to read as follows: |
|---|
| 12 | 12 | | (a) In addition to the information required by Section |
|---|
| 13 | 13 | | 2306.6705, an application for a housing tax credit allocation from |
|---|
| 14 | 14 | | the nonprofit set-aside, as defined by Section 42(h)(5), Internal |
|---|
| 15 | 15 | | Revenue Code of 1986 (26 U.S.C. Section 42(h)(5)), must contain the |
|---|
| 16 | 16 | | following written, detailed information with respect to each |
|---|
| 17 | 17 | | development owner and each general partner of a development owner: |
|---|
| 18 | 18 | | (1) Internal Revenue Service documentation of |
|---|
| 19 | 19 | | designation as a Section 501(c)(3) or 501(c)(4) organization; |
|---|
| 20 | 20 | | (2) evidence that one of the exempt purposes of the |
|---|
| 21 | 21 | | nonprofit organization is to provide low income housing; |
|---|
| 22 | 22 | | (3) a description of the nonprofit organization's |
|---|
| 23 | 23 | | participation in the construction or rehabilitation of the |
|---|
| 24 | 24 | | development and in the ongoing operations of the development; |
|---|
| 25 | 25 | | (4) evidence that the nonprofit organization |
|---|
| 26 | 26 | | prohibits a member of its board of directors, other than a chief |
|---|
| 27 | 27 | | staff member serving concurrently as a member of the board, from |
|---|
| 28 | 28 | | receiving material compensation for service on the board; |
|---|
| 29 | 29 | | (5) a third-party legal opinion stating that the |
|---|
| 30 | 30 | | nonprofit organization is not affiliated with or controlled by a |
|---|
| 31 | 31 | | for-profit organization and the basis for that opinion; |
|---|
| 32 | 32 | | (6) a copy of the nonprofit organization's most recent |
|---|
| 33 | 33 | | audited financial statement; |
|---|
| 34 | 34 | | (7) a list of the names [and home addresses] of members |
|---|
| 35 | 35 | | of the board of directors of the nonprofit organization; and |
|---|
| 36 | 36 | | (8) a third-party legal opinion stating that the |
|---|
| 37 | 37 | | nonprofit organization is eligible under Subsection (b) for a |
|---|
| 38 | 38 | | housing tax credit allocation from the nonprofit set-aside and the |
|---|
| 39 | 39 | | basis for that opinion[; and |
|---|
| 40 | 40 | | [(9) evidence that a majority of the members of the |
|---|
| 41 | 41 | | nonprofit organization's board of directors principally reside: |
|---|
| 42 | 42 | | [(A) in this state, if the development is located |
|---|
| 43 | 43 | | in a rural area; or |
|---|
| 44 | 44 | | [(B) not more than 90 miles from the development |
|---|
| 45 | 45 | | in the community in which the development is located, if the |
|---|
| 46 | 46 | | development is not located in a rural area]. |
|---|
| 47 | 47 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 48 | 48 | | to an application for low income housing tax credits that is |
|---|
| 49 | 49 | | submitted to the Texas Department of Housing and Community Affairs |
|---|
| 50 | 50 | | during an application cycle that is based on the 2018 qualified |
|---|
| 51 | 51 | | allocation plan or a subsequent plan adopted by the governing board |
|---|
| 52 | 52 | | of the department under Section 2306.67022, Government Code. An |
|---|
| 53 | 53 | | application that is submitted during an application cycle that is |
|---|
| 54 | 54 | | based on an earlier qualified allocation plan is governed by the law |
|---|
| 55 | 55 | | in effect on the date the application cycle began, and the former |
|---|
| 56 | 56 | | law is continued in effect for that purpose. |
|---|
| 57 | 57 | | SECTION 3. This Act takes effect September 1, 2017. |
|---|