Texas 2021 - 87th Regular

Texas House Bill HB470 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R2331 JAM-D
2	2	By: González of Dallas H.B. No. 470
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a right of first refusal applicable to the sale of
8	8	housing developments that have received certain financial
9	9	assistance administered by the Texas Department of Housing and
10	10	Community Affairs.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 2306.6710, Government Code, is amended
13	13	by adding Subsection (h) to read as follows:
14	14	(h) In scoring applications for purposes of housing tax
15	15	credit allocations, the department shall award preference points to
16	16	a development that agrees to provide to a qualified entity, in a
17	17	land use restriction agreement in accordance with Section
18	18	2306.6726, a right of first refusal to purchase the development at
19	19	the minimum price provided in, and in accordance with the
20	20	requirements of, Section 42(i)(7), Internal Revenue Code of 1986.
21	21	SECTION 2. Section 2306.6725(b), Government Code, is
22	22	amended to read as follows:
23	23	(b) The department shall provide appropriate incentives as
24	24	determined through the qualified allocation plan to reward
25	25	applicants who agree to:
26	26	(1) equip the development that is the basis of the
27	27	application with energy saving devices that meet the standards
28	28	established by the state energy conservation office [or provide to
29	29	a qualified entity, in a land use restriction agreement in
30	30	accordance with Section 2306.6726, a right of first refusal to
31	31	purchase the development at the minimum price provided in, and in
32	32	accordance with the requirements of, Section 42(i)(7), Internal
33	33	Revenue Code of 1986 (26 U.S.C. Section 42(i)(7))]; and
34	34	(2) locate the development in a census tract in which
35	35	there are no other existing developments supported by housing tax
36	36	credits.
37	37	SECTION 3. Section 2306.6726, Government Code, is amended
38	38	by amending Subsections (a), (b), and (c) and adding Subsection
39	39	(c-3) to read as follows:
40	40	(a) An owner of a development subject to a right of first
41	41	refusal described by [under] Section 2306.6710(h) [2306.6725] who
42	42	intends to sell the development at any time after the expiration of
43	43	the compliance period shall notify the department and the tenants
44	44	of the development of the owner's intent to sell and, if applicable,
45	45	shall specifically identify to the department any qualified entity
46	46	that is the owner's intended recipient of the right of first refusal
47	47	in the land use restriction agreement.
48	48	(b) The owner of a development subject to a right of first
49	49	refusal described by [under] Section 2306.6710(h) [2306.6725] may:
50	50	(1) during the first 120-day [60-day] period after
51	51	notice is provided under Subsection (a-1), negotiate or enter into
52	52	a purchase agreement only with a qualified entity that is:
53	53	(A) a community housing development organization
54	54	as defined by the federal HOME investment partnership program; or
55	55	(B) controlled by an entity described by
56	56	Paragraph (A);
57	57	(2) during the second 120-day [60-day] period after
58	58	notice is provided under Subsection (a-1), negotiate or enter into
59	59	a purchase agreement with a qualified entity that:
60	60	(A) is described by Section 2306.6706;
61	61	(B) is controlled by an entity described by
62	62	Paragraph (A); or
63	63	(C) is a tenant organization; and
64	64	(3) during the last 120-day [60-day] period after
65	65	notice is provided under Subsection (a-1), negotiate or enter into
66	66	a purchase agreement with any other qualified entity.
67	67	(c) Beginning on the 361st [181st] day after the date the
68	68	department posts notice under Subsection (a-1), an owner of a
69	69	development subject to a right of first refusal described by
70	70	[under] Section 2306.6710(h) [2306.6725] may sell to any purchaser
71	71	a development to which the right of first refusal applies only if a
72	72	qualified entity does not offer to purchase the development for the
73	73	minimum price provided in, and in accordance with the requirements
74	74	of, Section 42(i)(7), Internal Revenue Code of 1986 [a price that
75	75	the department determines to be reasonable].
76	76	(c-3) A development subject to a right of first refusal
77	77	described by Section 2306.6710(h) may only be offered for sale at
78	78	the minimum price provided in, and in accordance with the
79	79	requirements of, Section 42(i)(7), Internal Revenue Code of 1986.
80	80	SECTION 4. The change in law made by this Act applies only
81	81	to an application for low income housing tax credits that is
82	82	submitted to the Texas Department of Housing and Community Affairs
83	83	during an application cycle that is based on the 2022 qualified
84	84	allocation plan or a subsequent plan adopted by the governing board
85	85	of the department. An application that is submitted during an
86	86	application cycle that is based on an earlier qualified allocation
87	87	plan is governed by the law in effect on the date the application
88	88	cycle began, and the former law is continued in effect for that
89	89	purpose.
90	90	SECTION 5. This Act takes effect September 1, 2021.