Texas 2023 - 88th Regular

Texas House Bill HB4858 Compare Versions

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1	1	88R559 JAM-F
2	2	By: Gervin-Hawkins H.B. No. 4858
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the allocation of low income housing tax credits.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 2306.6710(b), (f), and (g), Government
10	10	Code, are amended to read as follows:
11	11	(b) If an application satisfies the threshold criteria, the
12	12	department shall score and rank the application using a point
13	13	system that:
14	14	(1) prioritizes in descending order criteria
15	15	regarding:
16	16	(A) financial feasibility of the development
17	17	based on the supporting financial data required in the application
18	18	that will include a project underwriting pro forma from the
19	19	permanent or construction lender;
20	20	(B) quantifiable community participation with
21	21	respect to the development, evaluated on the basis of a resolution
22	22	concerning the development that is voted on and adopted by the
23	23	following, as applicable:
24	24	(i) the governing body of a municipality in
25	25	which the proposed development site is to be located;
26	26	(ii) subject to Subparagraph (iii), the
27	27	commissioners court of a county in which the proposed development
28	28	site is to be located, if the proposed site is to be located in an
29	29	area of a county that is not part of a municipality; or
30	30	(iii) the commissioners court of a county
31	31	in which the proposed development site is to be located and the
32	32	governing body of the applicable municipality, if the proposed site
33	33	is to be located in the extraterritorial jurisdiction of a
34	34	municipality;
35	35	(C) the income levels of tenants of the
36	36	development;
37	37	(D) the size and quality of the units;
38	38	(E) the rent levels of the units;
39	39	(F) [the cost of the development by square foot;
40	40	[(G)] the services to be provided to tenants of
41	41	the development;
42	42	(G) [(H)] whether, at the time the complete
43	43	application is submitted or at any time within the two-year period
44	44	preceding the date of submission, the proposed development site is
45	45	located in an area declared to be a disaster under Section 418.014;
46	46	(H) [(I)] quantifiable community participation
47	47	with respect to the development, evaluated on the basis of written
48	48	statements from any neighborhood organizations on record with the
49	49	state or county in which the development is to be located and whose
50	50	boundaries contain the proposed development site; and
51	51	(I) [(J)] the level of community support for the
52	52	application, evaluated on the basis of a written statement from the
53	53	state representative who represents the district containing the
54	54	proposed development site;
55	55	(2) uses criteria imposing penalties on applicants or
56	56	affiliates who have requested extensions of department deadlines
57	57	relating to developments supported by housing tax credit
58	58	allocations made in the application round preceding the current
59	59	round or a developer or principal of the applicant that has been
60	60	removed by the lender, equity provider, or limited partners for its
61	61	failure to perform its obligations under the loan documents or
62	62	limited partnership agreement;
63	63	(3) encourages applicants to provide free notary
64	64	public service to the residents of the developments for which the
65	65	allocation of housing tax credits is requested; and
66	66	(4) for an application concerning a development that
67	67	is or will be located in a county with a population of 1 million or
68	68	more but less than 4 million and that is or will be located not more
69	69	than two miles from a veterans hospital, veterans affairs medical
70	70	center, or veterans affairs health care center, encourages
71	71	applicants to provide a preference for leasing units in the
72	72	development to low income veterans.
73	73	(f) In evaluating the level of community support for an
74	74	application under Subsection (b)(1)(I) [(b)(1)(J)], the department
75	75	shall award:
76	76	(1) positive points for positive written statements
77	77	received;
78	78	(2) negative points for negative written statements
79	79	received; and
80	80	(3) zero points for neutral statements received.
81	81	(g) If no written statement is received for an application
82	82	under Subsection (b)(1)(I) [(b)(1)(J)], the department shall use
83	83	the maximum number of points that could have been awarded under that
84	84	paragraph to increase the maximum number of points that may be
85	85	awarded for that application under Subsection (b)(1)(B). If
86	86	awarding points under Subsection (b)(1)(B)(iii), the department
87	87	shall reallocate the points from the scoring category provided by
88	88	Subsection (b)(1)(I) [(b)(1)(J)] equally between the political
89	89	subdivisions described by Subsection (b)(1)(B)(iii). In awarding
90	90	points transferred under this subsection from the scoring category
91	91	provided by Subsection (b)(1)(I) [(b)(1)(J)] to the scoring
92	92	category provided by Subsection (b)(1)(B), the department shall
93	93	award:
94	94	(1) positive points for positive resolutions adopted;
95	95	(2) negative points for negative resolutions adopted;
96	96	and
97	97	(3) zero points for neutral resolutions adopted.
98	98	SECTION 2. Section 2306.6711(b), Government Code, is
99	99	amended to read as follows:
100	100	(b) Not later than the deadline specified in the qualified
101	101	allocation plan, the board shall issue commitments for available
102	102	housing tax credits based on the application evaluation process
103	103	provided by Section 2306.6710. The board may not allocate to an
104	104	applicant housing tax credits in any unnecessary amount, as
105	105	determined by the department's underwriting policy and by federal
106	106	law, and in any event may not allocate to the applicant housing tax
107	107	credits in an amount greater than $4 [$3] million in a single
108	108	application round or to an individual development more than $2
109	109	million in a single application round.
110	110	SECTION 3. Section 2306.6725(b), Government Code, is
111	111	amended to read as follows:
112	112	(b) The department shall provide appropriate incentives as
113	113	determined through the qualified allocation plan to reward
114	114	applicants who agree to:
115	115	(1) equip the development that is the basis of the
116	116	application with energy saving devices that meet the standards
117	117	established by the state energy conservation office; or
118	118	(2) provide to a qualified entity, in a land use
119	119	restriction agreement in accordance with Section 2306.6726, a right
120	120	of first refusal to purchase the development at the minimum price
121	121	provided in, and in accordance with the requirements of, Section
122	122	42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
123	123	42(i)(7))[; and
124	124	[(2) locate the development in a census tract in which
125	125	there are no other existing developments supported by housing tax
126	126	credits].
127	127	SECTION 4. The change in law made by this Act applies only
128	128	to an application for low income housing tax credits that is
129	129	submitted to the Texas Department of Housing and Community Affairs
130	130	during an application cycle that is based on the 2024 qualified
131	131	allocation plan or a subsequent plan adopted by the governing board
132	132	of the department. An application that is submitted during an
133	133	application cycle that is based on an earlier qualified allocation
134	134	plan is governed by the law in effect on the date the application
135	135	cycle began, and the former law is continued in effect for that
136	136	purpose.
137	137	SECTION 5. This Act takes effect September 1, 2023.