Texas 2023 - 88th Regular

Texas House Bill HB1766 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 1766
2	2
3	3
4	4	AN ACT
5	5	relating to the issuance of private activity bonds for qualified
6	6	residential rental projects.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 1202.003, Government Code, is amended by
9	9	adding Subsection (b-1) to read as follows:
10	10	(b-1) Notwithstanding Subsection (b), if Section
11	11	1372.037(b) applies with respect to the issuance of qualified
12	12	residential rental project bonds in a program year, the attorney
13	13	general must certify the issuer's compliance with that subsection
14	14	before approving the issuance of those bonds. A certification made
15	15	under this subsection may be based solely on a written verification
16	16	provided by the issuer on request of the attorney general.
17	17	SECTION 2. Section 1372.0231(f), Government Code, is
18	18	amended to read as follows:
19	19	(f) In each area described by Subsection (d) [or (e)], the
20	20	board shall grant reservations based on the priority levels of
21	21	proposed projects as described by Section 1372.0321.
22	22	SECTION 3. Section 1372.0321, Government Code, is amended
23	23	to read as follows:
24	24	Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS
25	25	OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
26	26	reservations to issuers of qualified residential rental project
27	27	issues, the board shall give first priority to projects that:
28	28	(1) during the four-year period preceding the date of
29	29	the application, have:
30	30	(A) filed an application for a low-income housing
31	31	tax credit with the Texas Department of Housing and Community
32	32	Affairs; and
33	33	(B) closed on a previous reservation of bonds in
34	34	accordance with Section 1372.042, as determined based on the date
35	35	of allocation of those bonds;
36	36	(2) require a subsequent issuance of bonds to maintain
37	37	compliance with the percentage requirement described by Subsection
38	38	(e); and
39	39	(3) have not previously applied for a subsequent
40	40	issuance of bonds under this subsection.
41	41	(b) In granting reservations to issuers of qualified
42	42	residential rental project issues, the board shall give second
43	43	priority to:
44	44	(1) projects in which:
45	45	(A) 50 percent of the residential units in the
46	46	project are:
47	47	(i) under the restriction that the maximum
48	48	allowable rents are an amount equal to 30 percent of 50 percent of
49	49	the area median family income minus an allowance for utility costs
50	50	authorized under the federal low-income housing tax credit program;
51	51	and
52	52	(ii) reserved for families and individuals
53	53	earning not more than 50 percent of the area median income; and
54	54	(B) the remaining 50 percent of the residential
55	55	units in the project are:
56	56	(i) under the restriction that the maximum
57	57	allowable rents are an amount equal to 30 percent of 60 percent of
58	58	the area median family income minus an allowance for utility costs
59	59	authorized under the federal low-income housing tax credit program;
60	60	and
61	61	(ii) reserved for families and individuals
62	62	earning not more than 60 percent of the area median income;
63	63	(2) projects in which:
64	64	(A) 15 percent of the residential units in the
65	65	project are:
66	66	(i) under the restriction that the maximum
67	67	allowable rents are an amount equal to 30 percent of 30 percent of
68	68	the area median family income minus an allowance for utility costs
69	69	authorized under the federal low-income housing tax credit program;
70	70	and
71	71	(ii) reserved for families and individuals
72	72	earning not more than 30 percent of the area median income; and
73	73	(B) the remaining 85 percent of the residential
74	74	units in the project are:
75	75	(i) under the restriction that the maximum
76	76	allowable rents are an amount equal to 30 percent of 60 percent of
77	77	the area median family income minus an allowance for utility costs
78	78	authorized under the federal low-income housing tax credit program;
79	79	and
80	80	(ii) reserved for families and individuals
81	81	earning not more than 60 percent of the area median income;
82	82	(3) projects:
83	83	(A) in which 100 percent of the residential units
84	84	in the project are:
85	85	(i) under the restriction that the maximum
86	86	allowable rents are an amount equal to 30 percent of 60 percent of
87	87	the area median family income minus an allowance for utility costs
88	88	authorized under the federal low-income housing tax credit program;
89	89	and
90	90	(ii) reserved for families and individuals
91	91	earning not more than 60 percent of the area median income; and
92	92	(B) which are located in a census tract in which
93	93	the median income, based on the most recent information published
94	94	by the United States Bureau of the Census, is higher than the median
95	95	income for the county, metropolitan statistical area, or primary
96	96	metropolitan statistical area in which the census tract is located
97	97	as established by the United States Department of Housing and Urban
98	98	Development; or
99	99	(4) on or after June 1, projects that are located in
100	100	counties, metropolitan statistical areas, or primary metropolitan
101	101	statistical areas with area median family incomes at or below the
102	102	statewide median family income established by the United States
103	103	Department of Housing and Urban Development.
104	104	(c) [(a-1)] In granting reservations to issuers of
105	105	qualified residential rental project issues, the board shall give
106	106	third [second] priority to projects in which 80 percent or more of
107	107	the residential units in the project are:
108	108	(1) under the restriction that the maximum allowable
109	109	rents are an amount equal to 30 percent of 60 percent of the area
110	110	median family income minus an allowance for utility costs
111	111	authorized under the federal low-income housing tax credit program;
112	112	and
113	113	(2) reserved for families and individuals earning not
114	114	more than 60 percent of the area median income.
115	115	(d) [(a-2)] In granting reservations to issuers of
116	116	qualified residential rental project issues, the board shall give
117	117	fourth [third] priority to any other qualified residential rental
118	118	project.
119	119	(e) [(b)] The board may not reserve a portion of the state
120	120	ceiling for a first, [or] second, or third priority project
121	121	described by this section unless the board receives evidence that
122	122	an application has been filed with the Texas Department of Housing
123	123	and Community Affairs for the low-income housing tax credit that is
124	124	available for multifamily transactions that are at least 51 percent
125	125	financed by tax-exempt private activity bonds.
126	126	SECTION 4. Section 1372.037, Government Code, is amended by
127	127	adding Subsection (b) to read as follows:
128	128	(b) This subsection applies only to projects that are
129	129	granted a reservation of a portion of the available state ceiling
130	130	for a program year under Subsection (a)(5). If for a program year
131	131	the total amount of qualified residential rental project bonds for
132	132	which reservations are sought exceeds, as of October 20 of the
133	133	preceding year, 55.75 percent of the state ceiling, the amount of
134	134	bonds issued to each project may not exceed 55 percent of the
135	135	reasonably expected aggregate basis of the project and the land on
136	136	which the project is or will be located.
137	137	SECTION 5. Section 1372.042(d), Government Code, is amended
138	138	to read as follows:
139	139	(d) Not later than the fifth business day after the date on
140	140	which the bonds are closed, the issuer shall submit to the board:
141	141	(1) a written notice stating the delivery date of the
142	142	bonds and the principal amount of the bonds issued;
143	143	(2) if the project is a project entitled to first, [or]
144	144	second, or third priority under Section 1372.0321, evidence from
145	145	the Texas Department of Housing and Community Affairs that an award
146	146	of low-income housing tax credits has been approved for the
147	147	project; and
148	148	(3) a certified copy of the document authorizing the
149	149	bonds and any other document relating to the issuance of the bonds,
150	150	including a statement of the bonds':
151	151	(A) principal amount;
152	152	(B) interest rate or formula by which the
153	153	interest rate is computed;
154	154	(C) maturity schedule; and
155	155	(D) purchaser or purchasers.
156	156	SECTION 6. The change in law made by this Act in adding
157	157	Section 1202.003(b-1), Government Code, and in amending Chapter
158	158	1372, Government Code, applies to the allocation of the available
159	159	state ceiling under Chapter 1372 beginning with the 2024 program
160	160	year.
161	161	SECTION 7. This Act takes effect immediately if it receives
162	162	a vote of two-thirds of all the members elected to each house, as
163	163	provided by Section 39, Article III, Texas Constitution. If this
164	164	Act does not receive the vote necessary for immediate effect, this
165	165	Act takes effect September 1, 2023.
166	166	______________________________ ______________________________
167	167	President of the Senate Speaker of the House
168	168	I certify that H.B. No. 1766 was passed by the House on May 2,
169	169	2023, by the following vote: Yeas 125, Nays 19, 3 present, not
170	170	voting.
171	171	______________________________
172	172	Chief Clerk of the House
173	173	I certify that H.B. No. 1766 was passed by the Senate on May
174	174	24, 2023, by the following vote: Yeas 31, Nays 0.
175	175	______________________________
176	176	Secretary of the Senate
177	177	APPROVED: _____________________
178	178	Date
179	179	_____________________
180	180	Governor