| 3 | 2 | | |
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| 4 | 3 | | |
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| 5 | 4 | | A BILL TO BE ENTITLED |
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| 6 | 5 | | AN ACT |
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| 7 | 6 | | relating to a right of first refusal applicable to the sale of |
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| 8 | 7 | | housing developments that have received certain financial |
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| 9 | 8 | | assistance administered by the Texas Department of Housing and |
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| 10 | 9 | | Community Affairs. |
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| 11 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 11 | | SECTION 1. Section 2306.6726(b), Government Code, is |
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| 13 | 12 | | amended to read as follows: |
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| 14 | 13 | | (b) The owner of a development subject to a right of first |
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| 15 | 14 | | refusal under Section 2306.6725 may: |
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| 16 | 15 | | (1) during the first 60-day period after notice is |
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| 17 | 16 | | provided under Subsection (a-1), negotiate or enter into a purchase |
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| 18 | 17 | | agreement only with a qualified entity that is: |
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| 19 | 18 | | (A) a community housing development organization |
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| 20 | 19 | | as defined by the federal HOME investment partnership program; [or] |
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| 21 | 20 | | (B) if the authority or the corporation owns the |
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| 22 | 21 | | fee title to the development owner's leasehold estate: |
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| 23 | 22 | | (i) a public housing authority; or |
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| 24 | 23 | | (ii) a public facility corporation created |
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| 25 | 24 | | by a public housing authority under Chapter 303, Local Government |
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| 26 | 25 | | Code; or |
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| 27 | 26 | | (C) controlled by an entity described by |
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| 28 | 27 | | Paragraph (A) or (B); |
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| 29 | 28 | | (2) during the second 60-day period after notice is |
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| 30 | 29 | | provided under Subsection (a-1), negotiate or enter into a purchase |
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| 31 | 30 | | agreement with a qualified entity that: |
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| 32 | 31 | | (A) is described by Section 2306.6706; |
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| 33 | 32 | | (B) is controlled by an entity described by |
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| 34 | 33 | | Paragraph (A); or |
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| 35 | 34 | | (C) is a tenant organization; and |
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| 36 | 35 | | (3) during the last 60-day period after notice is |
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| 37 | 36 | | provided under Subsection (a-1), negotiate or enter into a purchase |
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| 38 | 37 | | agreement with any other qualified entity. |
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| 39 | 38 | | SECTION 2. Section 2306.6726, Government Code, as amended |
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| 40 | 39 | | by this Act, applies to the sale of a development supported with an |
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| 41 | 40 | | allocation of low income housing tax credits issued before, on, or |
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| 42 | 41 | | after the effective date of this Act. |
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| 43 | 42 | | SECTION 3. This Act takes effect September 1, 2019. |
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