| 1 | 1 | | By: Anchia H.B. No. 4419 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the system by which an application for a low income |
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| 7 | 7 | | housing tax credit is scored. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 2306.6710(b), Government Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (b) If an application satisfies the threshold criteria, the |
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| 12 | 12 | | department shall score and rank the application using a point |
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| 13 | 13 | | system that: |
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| 14 | 14 | | (1) prioritizes in descending order criteria |
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| 15 | 15 | | regarding: |
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| 16 | 16 | | (A) financial feasibility of the development |
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| 17 | 17 | | based on the supporting financial data required in the application |
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| 18 | 18 | | that will include a project underwriting pro forma from the |
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| 19 | 19 | | permanent or construction lender; |
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| 20 | 20 | | (B) quantifiable community participation with |
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| 21 | 21 | | respect to the development, evaluated on the basis of a resolution |
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| 22 | 22 | | concerning the development that is voted on and adopted by the |
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| 23 | 23 | | following, as applicable: |
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| 24 | 24 | | (i) the governing body of a municipality in |
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| 25 | 25 | | which the proposed development site is to be located; |
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| 26 | 26 | | (ii) subject to Subparagraph (iii), the |
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| 27 | 27 | | commissioners court of a county in which the proposed development |
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| 28 | 28 | | site is to be located, if the proposed site is to be located in an |
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| 29 | 29 | | area of a county that is not part of a municipality; or |
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| 30 | 30 | | (iii) the commissioners court of a county |
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| 31 | 31 | | in which the proposed development site is to be located and the |
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| 32 | 32 | | governing body of the applicable municipality, if the proposed site |
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| 33 | 33 | | is to be located in the extraterritorial jurisdiction of a |
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| 34 | 34 | | municipality; |
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| 35 | 35 | | (C) the income levels of tenants of the |
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| 36 | 36 | | development; |
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| 37 | 37 | | (D) the size and quality of the units; |
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| 38 | 38 | | (E) the rent levels of the units; |
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| 39 | 39 | | (F) the cost of the development by square foot; |
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| 40 | 40 | | (G) the services to be provided to tenants of the |
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| 41 | 41 | | development; |
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| 42 | 42 | | (H) whether, at the time the complete application |
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| 43 | 43 | | is submitted or at any time within the two-year period preceding the |
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| 44 | 44 | | date of submission, the proposed development site is located in an |
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| 45 | 45 | | area declared to be a disaster under Section 418.014; and |
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| 46 | 46 | | (I) quantifiable community participation with |
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| 47 | 47 | | respect to the development, evaluated on the basis of written |
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| 48 | 48 | | statements from any neighborhood organizations on record with the |
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| 49 | 49 | | state or county in which the development is to be located and whose |
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| 50 | 50 | | boundaries contain the proposed development site; [and |
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| 51 | 51 | | [(J) the level of community support for the |
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| 52 | 52 | | application, evaluated on the basis of a written statement from the |
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| 53 | 53 | | state representative who represents the district containing the |
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| 54 | 54 | | proposed development site;] |
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| 55 | 55 | | (2) uses criteria imposing penalties on applicants or |
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| 56 | 56 | | affiliates who have requested extensions of department deadlines |
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| 57 | 57 | | relating to developments supported by housing tax credit |
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| 58 | 58 | | allocations made in the application round preceding the current |
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| 59 | 59 | | round or a developer or principal of the applicant that has been |
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| 60 | 60 | | removed by the lender, equity provider, or limited partners for its |
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| 61 | 61 | | failure to perform its obligations under the loan documents or |
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| 62 | 62 | | limited partnership agreement; and |
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| 63 | 63 | | (3) encourages applicants to provide free notary |
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| 64 | 64 | | public service to the residents of the developments for which the |
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| 65 | 65 | | allocation of housing tax credits is requested. |
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| 66 | 66 | | SECTION 2. Sections 2306.6710(f) and 2306.6718, Government |
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| 67 | 67 | | Code, are repealed. |
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| 68 | 68 | | SECTION 3. The change in law made by this Act applies only |
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| 69 | 69 | | to an application for low income housing tax credits that is |
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| 70 | 70 | | submitted to the Texas Department of Housing and Community Affairs |
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| 71 | 71 | | during an application cycle that is based on the 2020 qualified |
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| 72 | 72 | | allocation plan or a subsequent plan adopted by the governing board |
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| 73 | 73 | | of the department. An application that is submitted during an |
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| 74 | 74 | | application cycle that is based on an earlier qualified allocation |
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| 75 | 75 | | plan is governed by the law in effect on the date the application |
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| 76 | 76 | | cycle began, and the former law is continued in effect for that |
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| 77 | 77 | | purpose. |
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| 78 | 78 | | SECTION 4. This Act takes effect September 1, 2019. |
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