| 1 | 1 | | H.B. No. 4550 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the allocation of low income housing tax credits. |
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| 6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 7 | | SECTION 1. Section 2306.67022, Government Code, is amended |
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| 8 | 8 | | to read as follows: |
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| 9 | 9 | | Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a) |
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| 10 | 10 | | At least biennially, the board shall adopt a qualified allocation |
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| 11 | 11 | | plan and a corresponding manual to provide information regarding |
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| 12 | 12 | | the administration of and eligibility for the low income housing |
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| 13 | 13 | | tax credit program. The board may adopt the plan and manual |
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| 14 | 14 | | annually, as considered appropriate by the board. |
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| 15 | 15 | | (b) The board shall adjust to reflect inflation any amount |
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| 16 | 16 | | specified in the qualified allocation plan relating to the |
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| 17 | 17 | | acceptable cost of a development by square foot. The board shall use |
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| 18 | 18 | | 2021 as the base year for the adjustment. |
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| 19 | 19 | | (c) In making the computation under Subsection (b), the |
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| 20 | 20 | | board shall consider the Consumer Price Index for All Urban |
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| 21 | 21 | | Consumers, or its successor in function, published by the United |
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| 22 | 22 | | States Bureau of Labor Statistics. |
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| 23 | 23 | | SECTION 2. Section 2306.6711(b), Government Code, is |
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| 24 | 24 | | amended to read as follows: |
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| 25 | 25 | | (b) Not later than the deadline specified in the qualified |
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| 26 | 26 | | allocation plan, the board shall issue commitments for available |
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| 27 | 27 | | housing tax credits based on the application evaluation process |
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| 28 | 28 | | provided by Section 2306.6710. The board may not allocate to an |
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| 29 | 29 | | applicant housing tax credits in any unnecessary amount, as |
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| 30 | 30 | | determined by the department's underwriting policy and by federal |
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| 31 | 31 | | law, and in any event may not allocate to the applicant housing tax |
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| 32 | 32 | | credits in an amount greater than $6 [$3] million in a single |
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| 33 | 33 | | application round or to an individual development more than $2 |
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| 34 | 34 | | million in a single application round. |
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| 35 | 35 | | SECTION 3. Section 2306.6724, Government Code, is amended |
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| 36 | 36 | | by adding Subsection (g) to read as follows: |
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| 37 | 37 | | (g) Notwithstanding any other law, the department shall |
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| 38 | 38 | | issue a final commitment for an allocation of housing tax credits |
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| 39 | 39 | | not later than the 120th day following the date on which the |
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| 40 | 40 | | department receives from an applicant a complete cost certification |
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| 41 | 41 | | package, as prescribed by department rule, and the applicant has |
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| 42 | 42 | | fulfilled any requests for information for the issuance of Internal |
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| 43 | 43 | | Revenue Service Form 8609, or that form's successor. |
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| 44 | 44 | | SECTION 4. Section 2306.1112, Government Code, is repealed. |
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| 45 | 45 | | SECTION 5. Section 2306.67022, Government Code, as amended |
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| 46 | 46 | | by this Act, applies to the adoption of a qualified allocation plan |
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| 47 | 47 | | and corresponding manual for the state fiscal biennium beginning |
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| 48 | 48 | | September 1, 2023. |
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| 49 | 49 | | SECTION 6. Sections 2306.111, 2306.6711, and 2306.6724, |
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| 50 | 50 | | Government Code, as amended by this Act, apply only to an |
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| 51 | 51 | | application for low income housing tax credits that is submitted to |
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| 52 | 52 | | the Texas Department of Housing and Community Affairs during an |
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| 53 | 53 | | application cycle that is based on the 2024 qualified allocation |
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| 54 | 54 | | plan or a subsequent plan adopted by the governing board of the |
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| 55 | 55 | | department. An application that is submitted during an application |
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| 56 | 56 | | cycle that is based on an earlier qualified allocation plan is |
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| 57 | 57 | | governed by the law in effect on the date the application cycle |
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| 58 | 58 | | began, and the former law is continued in effect for that purpose. |
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| 59 | 59 | | SECTION 7. This Act takes effect September 1, 2023. |
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| 60 | 60 | | ______________________________ ______________________________ |
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| 61 | 61 | | President of the Senate Speaker of the House |
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| 62 | 62 | | I certify that H.B. No. 4550 was passed by the House on May 2, |
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| 63 | 63 | | 2023, by the following vote: Yeas 130, Nays 14, 3 present, not |
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| 64 | 64 | | voting; and that the House concurred in Senate amendments to H.B. |
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| 65 | 65 | | No. 4550 on May 25, 2023, by the following vote: Yeas 126, Nays 17, |
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| 66 | 66 | | 2 present, not voting. |
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| 67 | 67 | | ______________________________ |
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| 68 | 68 | | Chief Clerk of the House |
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| 69 | 69 | | I certify that H.B. No. 4550 was passed by the Senate, with |
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| 70 | 70 | | amendments, on May 23, 2023, by the following vote: Yeas 28, Nays |
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| 71 | 71 | | 3. |
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| 72 | 72 | | ______________________________ |
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| 73 | 73 | | Secretary of the Senate |
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| 74 | 74 | | APPROVED: __________________ |
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| 75 | 75 | | Date |
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| 76 | 76 | | __________________ |
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| 77 | 77 | | Governor |
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