Texas 2019 - 86th Regular

Texas Senate Bill SB1858 Compare Versions

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

Old	New	Differences
1	1	86R9391 SRA-F
2	2	By: Menéndez S.B. No. 1858
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to private activity bonds.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1372.002(a), Government Code, is amended
10	10	to read as follows:
11	11	(a) For purposes of this chapter, a project is:
12	12	(1) an eligible facility or facilities that are
13	13	proposed to be financed, in whole or in part, by an issue of
14	14	qualified residential rental project bonds;
15	15	(2) in connection with an issue of qualified mortgage
16	16	bonds [or qualified student loan bonds], the providing of financial
17	17	assistance to qualified mortgagors [or students] located in all or
18	18	any part of the jurisdiction of the issuer; or
19	19	(3) an eligible facility or facilities that are
20	20	proposed to be financed, in whole or in part, by an issue of bonds
21	21	other than bonds described by Subdivision (1) or (2).
22	22	SECTION 2. Section 1372.022(a), Government Code, is amended
23	23	to read as follows:
24	24	(a) If the state ceiling is computed on the basis of $75 per
25	25	capita or a greater amount, before August 15 of each year:
26	26	(1) 32.25 [28.0] percent of the state ceiling is
27	27	available exclusively for reservations by issuers of qualified
28	28	mortgage bonds;
29	29	(2) 10.0 [8] percent of the state ceiling is available
30	30	exclusively for reservations by issuers of state-voted issues;
31	31	(3) 2.0 percent of the state ceiling is available
32	32	exclusively for reservations by issuers of qualified small issue
33	33	bonds and enterprise zone facility bonds;
34	34	(4) 26.25 [22.0] percent of the state ceiling is
35	35	available exclusively for reservations by issuers of qualified
36	36	residential rental project bonds; and
37	37	(5) [10.5 percent of the state ceiling is available
38	38	exclusively for reservations by issuers of qualified student loan
39	39	bonds authorized by Section 53B.47, Education Code, that are
40	40	nonprofit corporations able to issue a qualified scholarship
41	41	funding bond as defined by Section 150(d)(2), Internal Revenue Code
42	42	(26 U.S.C. Section 150(d)(2)); and
43	43	[(6)] 29.5 percent of the state ceiling is available
44	44	exclusively for reservations by any other issuer of bonds that
45	45	require an allocation.
46	46	SECTION 3. Sections 1372.0231(g) and (i), Government Code,
47	47	are amended to read as follows:
48	48	(g) On or after March [May] 1, the board may not grant
49	49	available reservations to housing finance corporations described
50	50	by Subsection (a) based on uniform state service regions or any
51	51	segments of those regions.
52	52	(i) Before March [May] 1, the board shall apportion the
53	53	amount of the state ceiling set aside under Subsection (a)(2) only
54	54	among uniform state service regions with respect to which an issuer
55	55	has submitted an application for a reservation of the state ceiling
56	56	[on or] before March 1.
57	57	SECTION 4. Section 1372.026, Government Code, is amended to
58	58	read as follows:
59	59	Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING
60	60	AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount
61	61	of the state ceiling that may be reserved before July [August] 15 by
62	62	a housing finance corporation for the issuance of qualified
63	63	mortgage bonds may not exceed the amount computed as follows:
64	64	(1) if the local population of the jurisdiction that
65	65	is served by the housing finance corporation is 300,000 or more, $36
66	66	million plus the product of the amount by which the local population
67	67	exceeds 300,000 multiplied by $40;
68	68	(2) if the local population of the jurisdiction that
69	69	is served by the housing finance corporation is 200,000 or more but
70	70	less than 300,000, $32 million plus the product of the amount by
71	71	which the local population exceeds 200,000 multiplied by $40;
72	72	(3) if the local population of the jurisdiction that
73	73	is served by the housing finance corporation is 100,000 or more but
74	74	less than 200,000, $24 million plus the product of the amount by
75	75	which the local population exceeds 100,000 multiplied by $80; or
76	76	(4) if the local population of the jurisdiction that
77	77	is served by the housing finance corporation is less than 100,000,
78	78	the product of the local population multiplied by $240.
79	79	(b) A housing finance corporation may not receive an
80	80	allocation for the issuance of qualified mortgage bonds in an
81	81	amount that exceeds the greater of:
82	82	(1) $50 [$40] million; or
83	83	(2) 1.70 percent of the state ceiling.
84	84	(c) For purposes of this section, the local population of a
85	85	housing finance corporation is the population of the local
86	86	government or local governments on whose behalf a housing finance
87	87	corporation is created. If two local governments that each have a
88	88	population of at least 50,000 or 0.18 percent of the population that
89	89	was used to determine the state ceiling, whichever is greater,
90	90	[each] and that have overlapping territory have created housing
91	91	finance corporations that have the power to issue bonds to provide
92	92	financing for home mortgages, the population of the housing finance
93	93	corporation created on behalf of the larger local government is
94	94	computed by subtracting from the population of the larger local
95	95	government the population of the part of the smaller local
96	96	government that is located in the larger local government. The
97	97	reduction of population provided by this subsection is not required
98	98	if the smaller local government assigns its authority to issue
99	99	bonds, based on its population, to the larger local government.
100	100	SECTION 5. Section 1372.037, Government Code, is amended to
101	101	read as follows:
102	102	Sec. 1372.037. LIMITATIONS ON GRANTING OF RESERVATIONS FOR
103	103	INDIVIDUAL PROJECTS. (a) Except as provided by Subsection (b),
104	104	before July 15 with respect to a reservation application for
105	105	qualified mortgage revenue bonds and qualified residential rental
106	106	project issues, and before August 15 with respect to any other
107	107	reservation application, the board may not grant for any single
108	108	project a reservation for that year that is greater than:
109	109	(1) [$40 million,] if the issuer is an issuer of
110	110	qualified mortgage bonds, other than the Texas Department of
111	111	Housing and Community Affairs or the Texas State Affordable Housing
112	112	Corporation, the greater of:
113	113	(A) $50 million; or
114	114	(B) 1.70 percent of the available state ceiling;
115	115	(2) [$50 million,] if the issuer is an issuer of a
116	116	state-voted issue, other than the Texas Higher Education
117	117	Coordinating Board, the greater of:
118	118	(A) $100 million; or
119	119	(B) 3.40 percent of the available state ceiling;
120	120	(3) [or $75 million,] if the issuer of a state-voted
121	121	issue is the Texas Higher Education Coordinating Board, the greater
122	122	of:
123	123	(A) $200 million; or
124	124	(B) 6.80 percent of the available state ceiling;
125	125	(4) if the issuer is an issuer of qualified small issue
126	126	bonds and enterprise zone facility bonds, [(3)] the amount to
127	127	which the Internal Revenue Code limits issuers of [qualified small
128	128	issue bonds and enterprise zone facility bonds, if the issuer is an
129	129	issuer of] those bonds;
130	130	(5) [(4) the lesser of $20 million or 15 percent of
131	131	the amount set aside for reservation by issuers of qualified
132	132	residential rental project bonds,] if the issuer is an issuer of
133	133	qualified residential rental project [those] bonds, the greater of:
134	134	(A) $50 million; or
135	135	(B) 1.70 percent of the available state ceiling;
136	136	[(5) the amount as prescribed in Sections 1372.033(d),
137	137	(e), and (f), if the issuer is an issuer authorized by Section
138	138	53B.47, Education Code, to issue qualified student loan bonds;] or
139	139	(6) [$50 million,] if the issuer is any other issuer of
140	140	bonds that require an allocation, the greater of:
141	141	(A) $100 million; or
142	142	(B) 3.40 percent of the available state ceiling.
143	143	(b) In addition to a reservation under Subsection (a)(2),
144	144	the board may grant to the Texas Water Development Board a
145	145	reservation for not more than the greater of:
146	146	(1) $100 million; or
147	147	(2) 3.40 percent of the available state ceiling for a
148	148	water development issue.
149	149	SECTION 6. Section 1372.042(a-1), Government Code, is
150	150	amended to read as follows:
151	151	(a-1) An issuer of qualified residential rental project
152	152	bonds shall close on the bonds for which the reservation was granted
153	153	not later than the 180th [150th] day after the reservation date. If
154	154	an issuer of qualified residential rental project bonds fails to
155	155	close on the bonds for which a reservation was granted, the issuer
156	156	shall pay the full closing fee provided by Section 1372.006(b) if
157	157	the application is not withdrawn before the 120th day after the
158	158	reservation date.
159	159	SECTION 7. Section 1372.043, Government Code, is amended to
160	160	read as follows:
161	161	Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S
162	162	FAILURE TO TIMELY CLOSE ON BONDS. If an issuer does not close on the
163	163	issuer's bonds as required by Section 1372.042:
164	164	(1) the reservation for the issue is canceled; and
165	165	(2) for the period beginning on the reservation date
166	166	and ending on the 180th [150th] day after the reservation date or on
167	167	the 210th day after the reservation date if the issuer is an issuer
168	168	of qualified mortgage bonds:
169	169	(A) no issuer may submit an application for a
170	170	reservation for the same project; and
171	171	(B) the issuer is eligible for a carryforward
172	172	designation for the project only as provided by Subchapter C.
173	173	SECTION 8. Sections 1372.069(b) and (c), Government Code,
174	174	are amended to read as follows:
175	175	(b) An issuer that applies for a carryforward designation
176	176	may not apply later in the same year for a reservation for the same
177	177	project, unless the carryforward application is withdrawn.
178	178	(c) An issuer may not apply for the carryforward designation
179	179	of an amount that is greater than the greater of:
180	180	(1) $50 million; or
181	181	(2) 1.70 percent of the available state ceiling.
182	182	SECTION 9. Sections 1372.001(14) and 1372.033, Government
183	183	Code, are repealed.
184	184	SECTION 10. This Act takes effect September 1, 2019.