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