Texas 2021 - 87th Regular

Texas Senate Bill SB850 Compare Versions

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

Old	New	Differences
1	1	87R8868 JG-F
2	2	By: Blanco S.B. No. 850
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the eligibility of certain at-risk developments to
8	8	receive low income housing tax credits.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2306.6702(a)(5), Government Code, is
11	11	amended to read as follows:
12	12	(5) "At-risk development" means:
13	13	(A) a development that:
14	14	(i) has received the benefit of a subsidy in
15	15	the form of a below-market interest rate loan, interest rate
16	16	reduction, rental subsidy, Section 8 housing assistance payment,
17	17	rental supplement payment, rental assistance payment, or equity
18	18	incentive under the following federal laws, as applicable:
19	19	(a) Sections 221(d)(3) and (5),
20	20	National Housing Act (12 U.S.C. Section 1715l);
21	21	(b) Section 236, National Housing Act
22	22	(12 U.S.C. Section 1715z-1);
23	23	(c) Section 202, Housing Act of 1959
24	24	(12 U.S.C. Section 1701q);
25	25	(d) Section 101, Housing and Urban
26	26	Development Act of 1965 (12 U.S.C. Section 1701s);
27	27	(e) the Section 8 Additional
28	28	Assistance Program for housing developments with HUD-Insured and
29	29	HUD-Held Mortgages administered by the United States Department of
30	30	Housing and Urban Development as specified by 24 C.F.R. Part 886,
31	31	Subpart A;
32	32	(f) the Section 8 Housing Assistance
33	33	Program for the Disposition of HUD-Owned Projects administered by
34	34	the United States Department of Housing and Urban Development as
35	35	specified by 24 C.F.R. Part 886, Subpart C;
36	36	(g) the Section 8 Housing Assistance
37	37	Payments Program for New Construction administered by the United
38	38	States Department of Housing and Urban Development as specified by
39	39	24 C.F.R. Part 880;
40	40	(h) the Section 8 Housing Assistance
41	41	Payments Program for Substantial Rehabilitation administered by
42	42	the United States Department of Housing and Urban Development as
43	43	specified by 24 C.F.R. Part 881;
44	44	(i) Sections 514, 515, and 516,
45	45	Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or
46	46	(j) [(h)] Section 42, Internal
47	47	Revenue Code of 1986; and
48	48	(ii) is subject to the following
49	49	conditions:
50	50	(a) the stipulation to maintain
51	51	affordability in the contract granting the subsidy is nearing
52	52	expiration; or
53	53	(b) the HUD-insured or HUD-held
54	54	mortgage on the development is eligible for prepayment or is
55	55	nearing the end of its term; or
56	56	(B) a development that proposes to rehabilitate
57	57	or reconstruct housing units that:
58	58	(i) receive assistance under Section 9,
59	59	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are
60	60	owned by:
61	61	(a) a public housing authority; or
62	62	(b) a public facility corporation
63	63	created by a public housing authority under Chapter 303, Local
64	64	Government Code;
65	65	(ii) received assistance under Section 9,
66	66	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
67	67	(a) are proposed to be disposed of or
68	68	demolished by a public housing authority or a public facility
69	69	corporation created by a public housing authority under Chapter
70	70	303, Local Government Code; or
71	71	(b) have been disposed of or
72	72	demolished by a public housing authority or a public facility
73	73	corporation created by a public housing authority under Chapter
74	74	303, Local Government Code, in the two-year period preceding the
75	75	application for housing tax credits; or
76	76	(iii) receive assistance or will receive
77	77	assistance through the Rental Assistance Demonstration program
78	78	administered by the United States Department of Housing and Urban
79	79	Development as specified by the Consolidated and Further Continuing
80	80	Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent
81	81	amendments, if the application for assistance through the Rental
82	82	Assistance Demonstration program is included in the applicable
83	83	public housing plan that was most recently approved by the United
84	84	States Department of Housing and Urban Development as specified by
85	85	24 C.F.R. Section 903.23.
86	86	SECTION 2. The change in law made by this Act applies only
87	87	to an application for low income housing tax credits that is
88	88	submitted to the Texas Department of Housing and Community Affairs
89	89	during an application cycle that is based on the 2022 qualified
90	90	allocation plan or a subsequent plan adopted by the governing board
91	91	of the department under Section 2306.67022, Government Code. An
92	92	application that is submitted during an application cycle that is
93	93	based on an earlier qualified allocation plan is governed by the law
94	94	in effect on the date the application cycle began, and the former
95	95	law is continued in effect for that purpose.
96	96	SECTION 3. This Act takes effect September 1, 2021.