86R6367 JG-D
By: Watson S.B. No. 543
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the allocation of low income housing tax
credits to certain applicants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter DD, Chapter 2306, Government Code, is
amended by adding Section 2306.67031 to read as follows:
Sec. 2306.67031. RESTRICTION ON ALLOCATION OF HOUSING TAX
CREDITS TO CERTAIN DEVELOPMENTS. (a) In this section:
(1) "Extended use period" has the meaning assigned by
Section 42(h)(6)(D), Internal Revenue Code of 1986.
(2) "Qualified contract" has the meaning assigned by
Section 42(h)(6)(F), Internal Revenue Code of 1986.
(b) The department may not allocate housing tax credits to a
development proposed by an applicant who owns one or more existing
developments supported by housing tax credits under this subchapter
unless the applicant agrees, as part of any conditions imposed by
the department in connection with the allocation of housing tax
credits for the proposed development, to waive the applicant's
right to sell any existing developments through the use of a
qualified contract during the extended use period.
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 2020 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, 2019.