88R1443 JAM-F
By: Bernal H.B. No. 191
A BILL TO BE ENTITLED
AN ACT
relating to the system by which an application for a low income
housing tax credit is scored.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6710, Government Code, is amended
by amending Subsection (b) and adding Subsections (h) and (i) to
read as follows:
(b) If an application satisfies the threshold criteria, the
department shall score and rank the application using a point
system that:
(1) prioritizes in descending order criteria
regarding:
(A) financial feasibility of the development
based on the supporting financial data required in the application
that will include a project underwriting pro forma from the
permanent or construction lender;
(B) quantifiable community participation with
respect to the development, evaluated on the basis of a resolution
concerning the development that is voted on and adopted by the
following, as applicable:
(i) the governing body of a municipality in
which the proposed development site is to be located;
(ii) subject to Subparagraph (iii), the
commissioners court of a county in which the proposed development
site is to be located, if the proposed site is to be located in an
area of a county that is not part of a municipality; or
(iii) the commissioners court of a county
in which the proposed development site is to be located and the
governing body of the applicable municipality, if the proposed site
is to be located in the extraterritorial jurisdiction of a
municipality;
(C) the income levels of tenants of the
development;
(D) the size and quality of the units;
(E) the rent levels of the units;
(F) the cost of the development by square foot;
(G) the services to be provided to tenants of the
development;
(H) whether, at the time the complete application
is submitted or at any time within the two-year period preceding the
date of submission, the proposed development site is located in an
area declared to be a disaster under Section 418.014;
(I) quantifiable community participation with
respect to the development, evaluated on the basis of written
statements from any neighborhood organizations on record with the
state or county in which the development is to be located and whose
boundaries contain the proposed development site; [and]
(J) the level of community support for the
application, evaluated on the basis of a written statement from the
state representative who represents the district containing the
proposed development site; and
(K) whether, at the time the complete application
is submitted, all units owned by the applicant are equipped with air
conditioning;
(2) uses criteria imposing penalties on applicants or
affiliates who have requested extensions of department deadlines
relating to developments supported by housing tax credit
allocations made in the application round preceding the current
round or a developer or principal of the applicant that has been
removed by the lender, equity provider, or limited partners for its
failure to perform its obligations under the loan documents or
limited partnership agreement;
(3) encourages applicants to provide free notary
public service to the residents of the developments for which the
allocation of housing tax credits is requested; and
(4) for an application concerning a development that
is or will be located in a county with a population of 1 million or
more but less than 4 million and that is or will be located not more
than two miles from a veterans hospital, veterans affairs medical
center, or veterans affairs health care center, encourages
applicants to provide a preference for leasing units in the
development to low income veterans.
(h) If an applicant requests in writing a statement of
support under Subsection (b)(1)(J) from the state representative
who represents the district containing the proposed development
site, the request from the applicant must include information
disclosing the percentage of units owned by the applicant that are
equipped with air conditioning.
(i) In assigning points to an application under Subsection
(b)(1)(K), the department shall award:
(1) positive points if all units owned by the
applicant are equipped with air conditioning; and
(2) negative points if any of the units owned by the
applicant are not equipped with air conditioning.
SECTION 2. The change in law made by this Act applies only
to an application for low income housing tax credits that is
submitted to the Texas Department of Housing and Community Affairs
during an application cycle that is based on the 2024 qualified
allocation plan or a subsequent plan adopted by the governing board
of the department under Section 2306.67022, Government Code. An
application that is submitted during an application cycle that is
based on an earlier qualified allocation plan is governed by the law
in effect on the date the application cycle began, and the former
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2023.