Texas 2023 - 88th Regular

Texas House Bill HB3136 Compare Versions

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1	1	88R20892 JG-D
2	2	By: Campos H.B. No. 3136
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance by the Texas Department of Housing and
8	8	Community Affairs of certain federal forms for purposes of
9	9	allocating low income housing tax credits; authorizing an
10	10	administrative penalty.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter DD, Chapter 2306, Government Code, is
13	13	amended by adding Section 2306.67101 to read as follows:
14	14	Sec. 2306.67101. ISSUANCE OF INTERNAL REVENUE SERVICE FORM
15	15	8609; REPORT. (a) In this section:
16	16	(1) "Documentation packet" means the Internal Revenue
17	17	Service Form 8609 documentation packet required to receive an
18	18	allocation of housing tax credits under this subchapter.
19	19	(2) "Form 8609" means Internal Revenue Service Form
20	20	8609, or that form's successor.
21	21	(b) Not later than the 120th day after the date a
22	22	development owner submits to the department an Internal Revenue
23	23	Service Form 8609 documentation packet under this section, the
24	24	department shall issue the owner an Internal Revenue Service Form
25	25	8609.
26	26	(c) A documentation packet must consist of only:
27	27	(1) an owner's statement of certification form:
28	28	(A) that is signed by the development owner and
29	29	notarized; and
30	30	(B) through which the development owner
31	31	certifies the accuracy of the information included in the
32	32	documentation packet;
33	33	(2) an owner's summary form that includes:
34	34	(A) the taxpayer identification number of the
35	35	development owner; and
36	36	(B) information on the ownership structure of the
37	37	development owner, the developer, or the development guarantor;
38	38	(3) a development cost schedule for the development;
39	39	(4) an independent auditor's report of the total
40	40	development cost and eligible basis of the development through
41	41	which the auditor certifies that the audit was conducted according
42	42	to generally accepted auditing standards and included:
43	43	(A) an examination of evidence supporting the
44	44	amounts and disclosures outlined in the cost certification;
45	45	(B) an assessment of the accounting principles
46	46	used and significant estimates made by the development owner; and
47	47	(C) an overall cost certification evaluation and
48	48	establishment of the total eligible basis;
49	49	(5) an independent auditor's report of bond financing
50	50	through which the auditor certifies the percentage of the
51	51	development's aggregate basis financed by tax-exempt bonds;
52	52	(6) a complete copy of the executed carryover
53	53	allocation agreement issued to the development owner by the
54	54	department;
55	55	(7) for a development that was awarded points for
56	56	demonstrating nonprofit participation under the sponsor
57	57	characteristics of the application, documentation evidencing the
58	58	nonprofit participation;
59	59	(8) a placement in service form that contains
60	60	summarized information for the development on a
61	61	building-by-building basis;
62	62	(9) an architect certification or substantial
63	63	completion form and permission to occupy form:
64	64	(A) that are completed and signed by the
65	65	development architect; and
66	66	(B) through which the development architect
67	67	certifies, for purposes of calculating the development's placed in
68	68	service date, the date of:
69	69	(i) the completion of the development's
70	70	buildings; and
71	71	(ii) the issuance of the certificate of
72	72	occupancy for the development;
73	73	(10) a complete copy of the executed and recorded land
74	74	use restriction agreement for the development;
75	75	(11) a projected operating pro forma to include a rent
76	76	schedule and annual operating expenses; and
77	77	(12) a summary of the sources and uses of funds for the
78	78	development.
79	79	(d) The form and contents of the documentation required
80	80	under Subsections (c)(1), (2), (3), (4), (5), (8), and (9) must be
81	81	the same as those prescribed by the department for the application
82	82	cycle that is based on the 2022 qualified allocation plan.
83	83	(e) If the department determines that a development owner
84	84	intentionally provided incorrect or inconsistent information in a
85	85	documentation packet submitted to the department under this
86	86	section, the department may assess an administrative penalty
87	87	against the owner in accordance with Subchapter B. In assessing an
88	88	administrative penalty under this subsection, the department may:
89	89	(1) impose a monetary penalty; or
90	90	(2) prohibit the owner or any person that has an
91	91	ownership interest in the development, except for a tax credit
92	92	purchaser or syndicator, from participating in the low income
93	93	housing tax credit program for a period of not more than two years.
94	94	(f) The department shall quarterly prepare and submit to the
95	95	legislature a written report that includes the following
96	96	information for the preceding quarter:
97	97	(1) the total number of submitted documentation
98	98	packets that the department is in the course of processing;
99	99	(2) the total number of Forms 8609 that the department
100	100	issued, aggregated by the total number issued:
101	101	(A) not later than the 120th day after the date a
102	102	documentation packet was submitted;
103	103	(B) on or after the 121st day but before the 151st
104	104	day after the date a documentation packet was submitted;
105	105	(C) on or after the 151st day but before the 181st
106	106	day after the date a documentation packet was submitted; and
107	107	(D) on or after the 181st day after the date a
108	108	documentation packet was submitted;
109	109	(3) a detailed statement of the reasons for the
110	110	department's delay in issuing Form 8609 in the time required by
111	111	Subsection (b), including complete copies of any requests for
112	112	information;
113	113	(4) the average time the department required for
114	114	issuing Form 8609;
115	115	(5) the total number of rejected applications for Form
116	116	8609; and
117	117	(6) a detailed statement of the reason for the
118	118	department's rejection of each application.
119	119	(g) The department shall adopt rules to implement this
120	120	section, including rules specifying the manner, deadline, and fees
121	121	for submitting a documentation packet under this section.
122	122	SECTION 2. The changes in law made by this Act apply only to
123	123	an application for low income housing tax credits that is submitted
124	124	to the Texas Department of Housing and Community Affairs during an
125	125	application cycle that is based on the 2023 qualified allocation
126	126	plan or a subsequent plan adopted by the governing board of the
127	127	department under Section 2306.67022, Government Code. An
128	128	application that is submitted during an application cycle that is
129	129	based on an earlier qualified allocation plan is governed by the law
130	130	in effect on the date the application cycle began, and the former
131	131	law is continued in effect for that purpose.
132	132	SECTION 3. This Act takes effect September 1, 2023.