| 1 | 1 | | By: Blanco S.B. No. 1038 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the eligibility of certain at-risk developments to |
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| 7 | 7 | | receive low income housing tax credits. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 2306.6702(a)(5), Government Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (5) "At-risk development" means: |
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| 12 | 12 | | (A) a development that: |
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| 13 | 13 | | (i) has received the benefit of a subsidy in |
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| 14 | 14 | | the form of a below-market interest rate loan, interest rate |
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| 15 | 15 | | reduction, rental subsidy, Section 8 housing assistance payment, |
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| 16 | 16 | | rental supplement payment, rental assistance payment, or equity |
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| 17 | 17 | | incentive under the following federal laws, as applicable: |
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| 18 | 18 | | (a) Sections 221(d)(3) and (5), |
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| 19 | 19 | | National Housing Act (12 U.S.C. Section 1715l); |
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| 20 | 20 | | (b) Section 236, National |
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| 21 | 21 | | Housing Act (12 U.S.C. Section 1715z-1); |
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| 22 | 22 | | (c) Section 202, Housing Act of |
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| 23 | 23 | | 1959 (12 U.S.C. Section 1701q); |
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| 24 | 24 | | (d) Section 101, Housing and |
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| 25 | 25 | | Urban Development Act of 1965 (12 U.S.C. Section 1701s); |
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| 26 | 26 | | (e) the Section 8 Additional |
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| 27 | 27 | | Assistance Program for housing developments with HUD-Insured and |
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| 28 | 28 | | HUD-Held Mortgages administered by the United States Department of |
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| 29 | 29 | | Housing and Urban Development as specified by 24 C.F.R. Part 886, |
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| 30 | 30 | | Subpart A; |
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| 31 | 31 | | (f) the Section 8 Housing |
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| 32 | 32 | | Assistance Program for the Disposition of HUD-Owned Projects |
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| 33 | 33 | | administered by the United States Department of Housing and Urban |
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| 34 | 34 | | Development as specified by 24 C.F.R. Part 886, Subpart C; |
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| 35 | 35 | | (g) the Section 8 Housing |
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| 36 | 36 | | Assistance Payments Program for New Construction administered by |
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| 37 | 37 | | the United States Department of Housing and Urban Development as |
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| 38 | 38 | | specified by 24 C.F.R. Part 880; |
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| 39 | 39 | | (h) the Section 8 Housing |
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| 40 | 40 | | Assistance Payments Program for Substantial Rehabilitation |
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| 41 | 41 | | administered by the United States Department of Housing and Urban |
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| 42 | 42 | | Development as specified by 24 C.F.R. Part 881; |
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| 43 | 43 | | (i) Sections 514, 515, and |
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| 44 | 44 | | 516, Housing Act of 1949 (42 U.S.C. Sections 1484, |
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| 45 | 45 | | 1485, and 1486); or |
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| 46 | 46 | | (j) [(h)] Section 42, |
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| 47 | 47 | | Internal Revenue Code of 1986; and |
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| 48 | 48 | | (ii) is subject to the following |
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| 49 | 49 | | conditions: |
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| 50 | 50 | | (a) the stipulation to maintain |
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| 51 | 51 | | affordability in the contract granting the subsidy is nearing |
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| 52 | 52 | | expiration; or |
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| 53 | 53 | | (b) the HUD-insured or HUD-held |
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| 54 | 54 | | mortgage on the development is eligible for prepayment or is |
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| 55 | 55 | | nearing the end of its term; or |
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| 56 | 56 | | (B) a development that proposes to rehabilitate |
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| 57 | 57 | | or reconstruct housing units that: |
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| 58 | 58 | | (i) receive assistance under Section 9, |
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| 59 | 59 | | United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are |
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| 60 | 60 | | owned by: |
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| 61 | 61 | | (a) a public housing authority; |
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| 62 | 62 | | or |
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| 63 | 63 | | (b) a public facility |
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| 64 | 64 | | corporation created by a public housing authority under Chapter |
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| 65 | 65 | | 303, Local Government Code; |
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| 66 | 66 | | (ii) received assistance under Section 9, |
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| 67 | 67 | | United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: |
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| 68 | 68 | | (a) are proposed to be disposed |
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| 69 | 69 | | of or demolished by a public housing authority or a public facility |
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| 70 | 70 | | corporation created by a public housing authority under Chapter |
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| 71 | 71 | | 303, Local Government Code; or |
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| 72 | 72 | | (b) have been disposed of or |
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| 73 | 73 | | demolished by a public housing authority or a public facility |
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| 74 | 74 | | corporation created by a public housing authority under Chapter |
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| 75 | 75 | | 303, Local Government Code, in the two-year period preceding the |
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| 76 | 76 | | application for housing tax credits; or |
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| 77 | 77 | | (iii) receive assistance or will receive |
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| 78 | 78 | | assistance through the Rental Assistance Demonstration program |
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| 79 | 79 | | administered by the United States Department of Housing and Urban |
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| 80 | 80 | | Development as specified by the Consolidated and Further Continuing |
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| 81 | 81 | | Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent |
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| 82 | 82 | | amendments, if the application for assistance through the Rental |
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| 83 | 83 | | Assistance Demonstration program is included in the applicable |
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| 84 | 84 | | public housing plan that was most recently approved by the United |
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| 85 | 85 | | States Department of Housing and Urban Development as specified by |
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| 86 | 86 | | 24 C.F.R. Section 903.23. |
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| 87 | 87 | | SECTION 2. The change in law made by this Act applies only |
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| 88 | 88 | | to an application for low income housing tax credits that is |
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| 89 | 89 | | submitted to the Texas Department of Housing and Community Affairs |
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| 90 | 90 | | during an application cycle that is based on the 2024 qualified |
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| 91 | 91 | | allocation plan or a subsequent plan adopted by the governing board |
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| 92 | 92 | | of the department under Section 2306.67022, Government Code. An |
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| 93 | 93 | | application that is submitted during an application cycle that is |
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| 94 | 94 | | based on an earlier qualified allocation plan is governed by the law |
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| 95 | 95 | | in effect on the date the application cycle began, and the former |
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| 96 | 96 | | law is continued in effect for that purpose. |
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| 97 | 97 | | SECTION 3. This Act takes effect September 1, 2023. |
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