Texas 2021 - 87th Regular

Texas House Bill HB2371 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		87R19479 JG-D
2	2		By: Morales Shaw, Minjarez H.B. No. 2371
	3	+	Substitute the following for H.B. No. 2371:
	4	+	By: Campos C.S.H.B. No. 2371
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the evaluation of applications for certain financial
8	10		assistance administered by the Texas Department of Housing and
9	11		Community Affairs.
10	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	13		SECTION 1. Section 2306.1114(a), Government Code, is
12	14		amended to read as follows:
13	15		(a) Not later than the 14th day after the date an
14	16		application or a proposed application for housing funds described
15	17		by Section 2306.111 has been filed, the department shall provide
16	18		written notice of the filing of the application or proposed
17	19		application to the following persons:
18	20		(1) the United States representative who represents
19	21		the community containing the development described in the
20	22		application;
21	23		(2) members of the legislature who represent the
22	24		community containing the development described in the application;
23	25		(3) the presiding officer of the governing body of the
24	26		political subdivision containing the development described in the
25	27		application;
26	28		(4) any member of the governing body of a political
27	29		subdivision who represents the area containing the development
28	30		described in the application;
29	31		(5) the superintendent and the presiding officer of
30	32		the board of trustees of the school district containing the
31	33		development described in the application; and
32	34		(6) any neighborhood organization that is
33	35		[organizations] on record with the state or county in which the
34	36		development described in the application is to be located and that
35	37		has [whose] boundaries containing, immediately contiguous to, or
36	38		across the street from [contain] the proposed development site.
37	39		SECTION 2. Section 2306.6704(b-1), Government Code, is
38	40		amended to read as follows:
39	41		(b-1) The preapplication process must require the applicant
40	42		to provide the department with evidence that the applicant has
41	43		notified the following entities with respect to the filing of the
42	44		application:
43	45		(1) any neighborhood organization that is
44	46		[organizations] on record with the state or county in which the
45	47		development is to be located and that has [whose] boundaries
46	48		containing, immediately contiguous to, or across the street from
47	49		[contain] the proposed development site;
48	50		(2) the superintendent and the presiding officer of
49	51		the board of trustees of the school district containing the
50	52		development;
51	53		(3) the presiding officer of the governing body of any
52	54		municipality containing the development and all elected members of
53	55		that body;
54	56		(4) the presiding officer of the governing body of the
55	57		county containing the development and all elected members of that
56	58		body; and
57	59		(5) the state senator and state representative of the
58	60		district containing the development.
59	61		SECTION 3. Section 2306.6705, Government Code, is amended
60	62		to read as follows:
61	63		Sec. 2306.6705. GENERAL APPLICATION REQUIREMENTS. An
62	64		application must contain at a minimum the following written,
63	65		detailed information in a form prescribed by the board:
64	66		(1) a description of:
65	67		(A) the financing plan for the development,
66	68		including any nontraditional financing arrangements;
67	69		(B) the use of funds with respect to the
68	70		development;
69	71		(C) the funding sources for the development,
70	72		including:
71	73		(i) construction, permanent, and bridge
72	74		loans; and
73	75		(ii) rents, operating subsidies, and
74	76		replacement reserves; and
75	77		(D) the commitment status of the funding sources
76	78		for the development;
77	79		(2) if syndication costs are included in the eligible
78	80		basis, a justification of the syndication costs for each cost
79	81		category by an attorney or accountant specializing in tax matters;
80	82		(3) from a syndicator or a financial consultant of the
81	83		applicant, an estimate of the amount of equity dollars expected to
82	84		be raised for the development in conjunction with the amount of
83	85		housing tax credits requested for allocation to the applicant,
84	86		including:
85	87		(A) pay-in schedules; and
86	88		(B) syndicator consulting fees and other
87	89		syndication costs;
88	90		(4) if rental assistance, an operating subsidy, or an
89	91		annuity is proposed for the development, any related contract or
90	92		other agreement securing those funds and an identification of:
91	93		(A) the source and annual amount of the funds;
92	94		(B) the number of units receiving the funds; and
93	95		(C) the term and expiration date of the contract
94	96		or other agreement;
95	97		(5) if the development is located within the
96	98		boundaries of a political subdivision with a zoning ordinance,
97	99		evidence in the form of a letter from the chief executive officer of
98	100		the political subdivision or from another local official with
99	101		jurisdiction over zoning matters that states that:
100	102		(A) the development is permitted under the
101	103		provisions of the ordinance that apply to the location of the
102	104		development; or
103	105		(B) the applicant is in the process of seeking
104	106		the appropriate zoning and has signed and provided to the political
105	107		subdivision a release agreeing to hold the political subdivision
106	108		and all other parties harmless in the event that the appropriate
107	109		zoning is denied;
108	110		(6) if an occupied development is proposed for
109	111		rehabilitation:
110	112		(A) an explanation of the process used to notify
111	113		and consult with the tenants in preparing the application;
112	114		(B) a relocation plan outlining:
113	115		(i) relocation requirements; and
114	116		(ii) a budget with an identified funding
115	117		source; and
116	118		(C) if applicable, evidence that the relocation
117	119		plan has been submitted to the appropriate local agency;
118	120		(7) a certification of the applicant's compliance with
119	121		appropriate state and federal laws, as required by other state law
120	122		or by the board;
121	123		(8) any other information required by the board in the
122	124		qualified allocation plan; and
123	125		(9) evidence that the applicant has notified the
124	126		following entities with respect to the filing of the application:
125	127		(A) any neighborhood organization that is
126	128		[organizations] on record with the state or county in which the
127	129		development is to be located and that has [whose] boundaries
128	130		containing, immediately contiguous to, or across the street from
129	131		[contain] the proposed development site;
130	132		(B) the superintendent and the presiding officer
131	133		of the board of trustees of the school district containing the
132	134		development;
133	135		(C) the presiding officer of the governing body
134	136		of any municipality containing the development and all elected
135	137		members of that body;
136	138		(D) the presiding officer of the governing body
137	139		of the county containing the development and all elected members of
138	140		that body; and
139	141		(E) the state senator and state representative of
140	142		the district containing the development.
141	143		SECTION 4. The change in law made by this Act applies only
142	144		to an application for low income housing tax credits that is
143	145		submitted to the Texas Department of Housing and Community Affairs
144	146		during an application cycle that is based on the 2022 qualified
145	147		allocation plan or a subsequent plan adopted by the governing board
146	148		of the department under Section 2306.67022, Government Code. An
147	149		application that is submitted during an application cycle that is
148	150		based on an earlier qualified allocation plan is governed by the law
149	151		in effect on the date the application cycle began, and the former
150	152		law is continued in effect for that purpose.
151	153		SECTION 5. This Act takes effect September 1, 2021.