| 1 | 1 | | 86R6367 JG-D |
|---|
| 2 | 2 | | By: Watson S.B. No. 543 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to prohibiting the allocation of low income housing tax |
|---|
| 8 | 8 | | credits to certain applicants. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter DD, Chapter 2306, Government Code, is |
|---|
| 11 | 11 | | amended by adding Section 2306.67031 to read as follows: |
|---|
| 12 | 12 | | Sec. 2306.67031. RESTRICTION ON ALLOCATION OF HOUSING TAX |
|---|
| 13 | 13 | | CREDITS TO CERTAIN DEVELOPMENTS. (a) In this section: |
|---|
| 14 | 14 | | (1) "Extended use period" has the meaning assigned by |
|---|
| 15 | 15 | | Section 42(h)(6)(D), Internal Revenue Code of 1986. |
|---|
| 16 | 16 | | (2) "Qualified contract" has the meaning assigned by |
|---|
| 17 | 17 | | Section 42(h)(6)(F), Internal Revenue Code of 1986. |
|---|
| 18 | 18 | | (b) The department may not allocate housing tax credits to a |
|---|
| 19 | 19 | | development proposed by an applicant who owns one or more existing |
|---|
| 20 | 20 | | developments supported by housing tax credits under this subchapter |
|---|
| 21 | 21 | | unless the applicant agrees, as part of any conditions imposed by |
|---|
| 22 | 22 | | the department in connection with the allocation of housing tax |
|---|
| 23 | 23 | | credits for the proposed development, to waive the applicant's |
|---|
| 24 | 24 | | right to sell any existing developments through the use of a |
|---|
| 25 | 25 | | qualified contract during the extended use period. |
|---|
| 26 | 26 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 27 | 27 | | to an application for low income housing tax credits that is |
|---|
| 28 | 28 | | submitted to the Texas Department of Housing and Community Affairs |
|---|
| 29 | 29 | | during an application cycle that is based on the 2020 qualified |
|---|
| 30 | 30 | | allocation plan or a subsequent plan adopted by the governing board |
|---|
| 31 | 31 | | of the department under Section 2306.67022, Government Code. An |
|---|
| 32 | 32 | | application that is submitted during an application cycle that is |
|---|
| 33 | 33 | | based on an earlier qualified allocation plan is governed by the law |
|---|
| 34 | 34 | | in effect on the date the application cycle began, and the former |
|---|
| 35 | 35 | | law is continued in effect for that purpose. |
|---|
| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2019. |
|---|