H.B. No. 4550
AN ACT
relating to the allocation of low income housing tax credits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.67022, Government Code, is amended
to read as follows:
Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a)
At least biennially, the board shall adopt a qualified allocation
plan and a corresponding manual to provide information regarding
the administration of and eligibility for the low income housing
tax credit program. The board may adopt the plan and manual
annually, as considered appropriate by the board.
(b) The board shall adjust to reflect inflation any amount
specified in the qualified allocation plan relating to the
acceptable cost of a development by square foot. The board shall use
2021 as the base year for the adjustment.
(c) In making the computation under Subsection (b), the
board shall consider the Consumer Price Index for All Urban
Consumers, or its successor in function, published by the United
States Bureau of Labor Statistics.
SECTION 2. Section 2306.6711(b), Government Code, is
amended to read as follows:
(b) Not later than the deadline specified in the qualified
allocation plan, the board shall issue commitments for available
housing tax credits based on the application evaluation process
provided by Section 2306.6710. The board may not allocate to an
applicant housing tax credits in any unnecessary amount, as
determined by the department's underwriting policy and by federal
law, and in any event may not allocate to the applicant housing tax
credits in an amount greater than $6 [$3] million in a single
application round or to an individual development more than $2
million in a single application round.
SECTION 3. Section 2306.6724, Government Code, is amended
by adding Subsection (g) to read as follows:
(g) Notwithstanding any other law, the department shall
issue a final commitment for an allocation of housing tax credits
not later than the 120th day following the date on which the
department receives from an applicant a complete cost certification
package, as prescribed by department rule, and the applicant has
fulfilled any requests for information for the issuance of Internal
Revenue Service Form 8609, or that form's successor.
SECTION 4. Section 2306.1112, Government Code, is repealed.
SECTION 5. Section 2306.67022, Government Code, as amended
by this Act, applies to the adoption of a qualified allocation plan
and corresponding manual for the state fiscal biennium beginning
September 1, 2023.
SECTION 6. Sections 2306.111, 2306.6711, and 2306.6724,
Government Code, as amended by this Act, apply 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. 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 7. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4550 was passed by the House on May 2,
2023, by the following vote: Yeas 130, Nays 14, 3 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4550 on May 25, 2023, by the following vote: Yeas 126, Nays 17,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4550 was passed by the Senate, with
amendments, on May 23, 2023, by the following vote: Yeas 28, Nays
3.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor