| 4 | 6 | | AN ACT |
|---|
| 5 | 7 | | relating to a right of first refusal applicable to the sale of |
|---|
| 6 | 8 | | housing developments that have received certain financial |
|---|
| 7 | 9 | | assistance administered by the Texas Department of Housing and |
|---|
| 8 | 10 | | Community Affairs. |
|---|
| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 12 | | SECTION 1. Section 2306.6726(b), Government Code, is |
|---|
| 11 | 13 | | amended to read as follows: |
|---|
| 12 | 14 | | (b) The owner of a development subject to a right of first |
|---|
| 13 | 15 | | refusal under Section 2306.6725 may: |
|---|
| 14 | 16 | | (1) during the first 60-day period after notice is |
|---|
| 15 | 17 | | provided under Subsection (a-1), negotiate or enter into a purchase |
|---|
| 16 | 18 | | agreement only with a qualified entity that is: |
|---|
| 17 | 19 | | (A) a community housing development organization |
|---|
| 18 | 20 | | as defined by the federal HOME investment partnership program; [or] |
|---|
| 19 | 21 | | (B) if the authority or the corporation owns the |
|---|
| 20 | 22 | | fee title to the development owner's leasehold estate: |
|---|
| 21 | 23 | | (i) a public housing authority; or |
|---|
| 22 | 24 | | (ii) a public facility corporation created |
|---|
| 23 | 25 | | by a public housing authority under Chapter 303, Local Government |
|---|
| 24 | 26 | | Code; or |
|---|
| 25 | 27 | | (C) controlled by an entity described by |
|---|
| 26 | 28 | | Paragraph (A) or (B); |
|---|
| 27 | 29 | | (2) during the second 60-day period after notice is |
|---|
| 28 | 30 | | provided under Subsection (a-1), negotiate or enter into a purchase |
|---|
| 29 | 31 | | agreement with a qualified entity that: |
|---|
| 30 | 32 | | (A) is described by Section 2306.6706; |
|---|
| 31 | 33 | | (B) is controlled by an entity described by |
|---|
| 32 | 34 | | Paragraph (A); or |
|---|
| 33 | 35 | | (C) is a tenant organization; and |
|---|
| 34 | 36 | | (3) during the last 60-day period after notice is |
|---|
| 35 | 37 | | provided under Subsection (a-1), negotiate or enter into a purchase |
|---|
| 36 | 38 | | agreement with any other qualified entity. |
|---|
| 37 | 39 | | SECTION 2. Section 2306.6726, Government Code, as amended |
|---|
| 38 | 40 | | by this Act, applies to the sale of a development supported with an |
|---|
| 39 | 41 | | allocation of low income housing tax credits issued before, on, or |
|---|
| 40 | 42 | | after the effective date of this Act. |
|---|
| 41 | 43 | | SECTION 3. This Act takes effect September 1, 2021. |
|---|
| 42 | | - | ______________________________ ______________________________ |
|---|
| 43 | | - | President of the Senate Speaker of the House |
|---|
| 44 | | - | I hereby certify that S.B. No. 403 passed the Senate on |
|---|
| 45 | | - | May 5, 2021, by the following vote: Yeas 31, Nays 0. |
|---|
| 46 | | - | ______________________________ |
|---|
| 47 | | - | Secretary of the Senate |
|---|
| 48 | | - | I hereby certify that S.B. No. 403 passed the House on |
|---|
| 49 | | - | May 25, 2021, by the following vote: Yeas 87, Nays 59, one present |
|---|
| 50 | | - | not voting. |
|---|
| 51 | | - | ______________________________ |
|---|
| 52 | | - | Chief Clerk of the House |
|---|
| 53 | | - | Approved: |
|---|
| 54 | | - | ______________________________ |
|---|
| 55 | | - | Date |
|---|
| 56 | | - | ______________________________ |
|---|
| 57 | | - | Governor |
|---|