Texas 2021 - 87th Regular

Texas Senate Bill SB1565 Compare Versions

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

Old	New	Differences
1	1	87R4791 JAM-D
2	2	By: Lucio S.B. No. 1565
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the allocation of low income housing tax credits.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The heading to Section 2306.67071, Government
10	10	Code, is amended to read as follows:
11	11	Sec. 2306.67071. ADDITIONAL APPLICATION REQUIREMENT:
12	12	NOTICE [, HEARING,] AND CERTIFICATION [RESOLUTION] BY CERTAIN
13	13	GOVERNING BODIES.
14	14	SECTION 2. Sections 2306.67071(c) and (d), Government Code,
15	15	are amended to read as follows:
16	16	(c) The board may not approve an application for housing tax
17	17	credits for developments financed through the private activity bond
18	18	program unless the applicant has submitted to the department a
19	19	certification made by [certified copy of a resolution from] each
20	20	applicable governing body described by Subsection (a) and stating
21	21	[. The resolution must certify] that:
22	22	(1) notice has been provided to each governing body as
23	23	required by Subsection (a); and
24	24	(2) each governing body has had sufficient opportunity
25	25	to obtain a response from the applicant regarding any questions or
26	26	concerns about the proposed development[;
27	27	[(3) each governing body has held a hearing under
28	28	Subsection (b); and
29	29	[(4) after due consideration of the information
30	30	provided by the applicant and public comment, the governing body
31	31	does not object to the proposed application].
32	32	(d) The department by rule may provide for the time and
33	33	manner of the submission to the department of a certification
34	34	[resolution] required by Subsection (c).
35	35	SECTION 3. Section 2306.6710(b), Government Code, is
36	36	amended to read as follows:
37	37	(b) If an application satisfies the threshold criteria, the
38	38	department shall score and rank the application using a point
39	39	system that:
40	40	(1) considers [prioritizes in descending order]
41	41	criteria regarding:
42	42	(A) financial feasibility of the development
43	43	based on the supporting financial data required in the application
44	44	that will include a project underwriting pro forma from the
45	45	permanent or construction lender;
46	46	(B) quantifiable community participation with
47	47	respect to the development, evaluated on the basis of a resolution
48	48	concerning the development that is voted on and adopted by the
49	49	following, as applicable:
50	50	(i) the governing body of a municipality in
51	51	which the proposed development site is to be located;
52	52	(ii) subject to Subparagraph (iii), the
53	53	commissioners court of a county in which the proposed development
54	54	site is to be located, if the proposed site is to be located in an
55	55	area of a county that is not part of a municipality; or
56	56	(iii) the commissioners court of a county
57	57	in which the proposed development site is to be located and the
58	58	governing body of the applicable municipality, if the proposed site
59	59	is to be located in the extraterritorial jurisdiction of a
60	60	municipality;
61	61	(C) the income levels of tenants of the
62	62	development;
63	63	(D) the size and quality of the units;
64	64	(E) the rent levels of the units;
65	65	(F) the cost of the development by square foot;
66	66	(G) the services to be provided to tenants of the
67	67	development;
68	68	(H) whether, at the time the complete application
69	69	is submitted or at any time within the two-year period preceding the
70	70	date of submission, the proposed development site is located in an
71	71	area declared to be a disaster under Section 418.014;
72	72	(I) quantifiable community participation with
73	73	respect to the development, evaluated on the basis of written
74	74	statements from any neighborhood organizations on record with the
75	75	state or county in which the development is to be located and whose
76	76	boundaries contain the proposed development site; and
77	77	(J) the level of community support for the
78	78	application, evaluated on the basis of a written statement from the
79	79	state representative who represents the district containing the
80	80	proposed development site;
81	81	(2) uses criteria imposing penalties on applicants or
82	82	affiliates who have requested extensions of department deadlines
83	83	relating to developments supported by housing tax credit
84	84	allocations made in the application round preceding the current
85	85	round or a developer or principal of the applicant that has been
86	86	removed by the lender, equity provider, or limited partners for its
87	87	failure to perform its obligations under the loan documents or
88	88	limited partnership agreement; and
89	89	(3) encourages applicants to provide free notary
90	90	public service to the residents of the developments for which the
91	91	allocation of housing tax credits is requested.
92	92	SECTION 4. Section 2306.6725(b), Government Code, is
93	93	amended to read as follows:
94	94	(b) The department shall provide appropriate incentives as
95	95	determined through the qualified allocation plan to reward
96	96	applicants who agree to:
97	97	(1) equip the development that is the basis of the
98	98	application with energy saving devices that meet the standards
99	99	established by the state energy conservation office; or
100	100	(2) provide to a qualified entity, in a land use
101	101	restriction agreement in accordance with Section 2306.6726, a right
102	102	of first refusal to purchase the development at the minimum price
103	103	provided in, and in accordance with the requirements of, Section
104	104	42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
105	105	42(i)(7))[; and
106	106	[(2) locate the development in a census tract in which
107	107	there are no other existing developments supported by housing tax
108	108	credits].
109	109	SECTION 5. Section 2306.67071(b), Government Code, is
110	110	repealed.
111	111	SECTION 6. The change in law made by this Act applies only
112	112	to an application for low income housing tax credits that is
113	113	submitted to the Texas Department of Housing and Community Affairs
114	114	during an application cycle that is based on the 2022 qualified
115	115	allocation plan or a subsequent plan adopted by the governing board
116	116	of the department. An application that is submitted during an
117	117	application cycle that is based on an earlier qualified allocation
118	118	plan is governed by the law in effect on the date the application
119	119	cycle began, and the former law is continued in effect for that
120	120	purpose.
121	121	SECTION 7. This Act takes effect September 1, 2021.