| 1 | 1 | | 87R8520 JG-D |
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| 2 | 2 | | By: Shaheen H.B. No. 2328 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the system by which an application for low income |
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| 8 | 8 | | housing tax credits is scored and the amount of low income housing |
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| 9 | 9 | | tax credits awarded during an application cycle. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 2306.67022, Government Code, is amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) |
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| 14 | 14 | | At least biennially, the board shall adopt a qualified allocation |
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| 15 | 15 | | plan and a corresponding manual to provide information regarding |
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| 16 | 16 | | the administration of and eligibility for the low income housing |
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| 17 | 17 | | tax credit program. The board may adopt the plan and manual |
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| 18 | 18 | | annually, as considered appropriate by the board. |
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| 19 | 19 | | (b) The department may require as part of the threshold |
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| 20 | 20 | | criteria under a qualified allocation plan that a proposed |
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| 21 | 21 | | development satisfy certain criteria relating to educational |
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| 22 | 22 | | quality, as specified by the department in that plan. |
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| 23 | 23 | | (c) The department may not adopt a qualified allocation plan |
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| 24 | 24 | | that uses a scoring system that awards points to an application |
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| 25 | 25 | | based on criteria relating to the educational quality applicable to |
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| 26 | 26 | | a proposed development site. |
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| 27 | 27 | | SECTION 2. Section 2306.6711(b), Government Code, is |
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| 28 | 28 | | amended to read as follows: |
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| 29 | 29 | | (b) Not later than the deadline specified in the qualified |
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| 30 | 30 | | allocation plan, the board shall issue commitments for available |
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| 31 | 31 | | housing tax credits based on the application evaluation process |
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| 32 | 32 | | provided by Section 2306.6710. The board may not allocate to an |
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| 33 | 33 | | applicant housing tax credits in any unnecessary amount, as |
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| 34 | 34 | | determined by the department's underwriting policy and by federal |
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| 35 | 35 | | law, and in any event may not allocate to the applicant housing tax |
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| 36 | 36 | | credits in an amount greater than $4 [$3] million in a single |
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| 37 | 37 | | application round or to an individual development more than $2 |
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| 38 | 38 | | million in a single application round. |
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| 39 | 39 | | SECTION 3. Section 2306.1112, Government Code, is repealed. |
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| 40 | 40 | | SECTION 4. The change in law made by this Act applies only |
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| 41 | 41 | | to an application for low income housing tax credits that is |
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| 42 | 42 | | submitted to the Texas Department of Housing and Community Affairs |
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| 43 | 43 | | during an application cycle that is based on the 2022 qualified |
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| 44 | 44 | | allocation plan or a subsequent plan adopted by the governing board |
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| 45 | 45 | | of the department. An application that is submitted during an |
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| 46 | 46 | | application cycle that is based on an earlier qualified allocation |
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| 47 | 47 | | plan is governed by the law in effect on the date the application |
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| 48 | 48 | | cycle began, and the former law is continued in effect for that |
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| 49 | 49 | | purpose. |
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| 50 | 50 | | SECTION 5. This Act takes effect September 1, 2021. |
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