88R11498 JG-D
By: Menéndez S.B. No. 1812
A BILL TO BE ENTITLED
AN ACT
relating to the issuance by the Texas Department of Housing and
Community Affairs of certain federal forms for purposes of
allocating low income housing tax credits; authorizing an
administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter DD, Chapter 2306, Government Code, is
amended by adding Section 2306.67101 to read as follows:
Sec. 2306.67101. ISSUANCE OF INTERNAL REVENUE SERVICE FORM
8609; REPORT. (a) In this section:
(1) "Documentation packet" means the Internal Revenue
Service Form 8609 documentation packet required under this section.
(2) "Form 8609" means Internal Revenue Service Form
8609, or that form's successor.
(b) Not later than the 30th day after the date a development
owner submits to the department an Internal Revenue Service Form
8609 documentation packet under this section, the department shall
issue the owner an Internal Revenue Service Form 8609.
(c) The department shall establish procedures for a
development owner to prepare and submit to the department a
documentation packet to obtain Form 8609 for the purpose of
receiving an allocation of housing tax credits under this
subchapter.
(d) A documentation packet must include:
(1) an owner's statement of certification form:
(A) that is signed by the development owner and
notarized; and
(B) through which the development owner
certifies the accuracy of the information included in the
documentation packet;
(2) an owner's summary form that includes:
(A) the taxpayer identification number of the
development owner; and
(B) information on the ownership structure of the
development owner, the developer, or the development guarantor;
(3) a development cost schedule for the development;
(4) an independent auditor's report of the total
development cost and eligible basis of the development through
which the auditor certifies that the audit was conducted according
to generally accepted auditing standards and included:
(A) an examination of evidence supporting the
amounts and disclosures outlined in the cost certification;
(B) an assessment of the accounting principles
used and significant estimates made by the development owner; and
(C) an overall cost certification evaluation and
establishment of the total eligible basis;
(5) an independent auditor's report of bond financing
through which the auditor certifies the percentage of the
development's aggregate basis financed by tax-exempt bonds;
(6) a complete copy of the executed carryover
allocation agreement issued to the development owner by the
department;
(7) for a development that was awarded one or two
points for demonstrating nonprofit participation under the sponsor
characteristics of the application, documentation evidencing the
nonprofit participation;
(8) a placement in service form that contains
summarized information for the development on a
building-by-building basis;
(9) an architect certification of completion date and
date ready for occupancy form:
(A) that is completed and signed by the
development architect; and
(B) through which the development architect
certifies, for purposes of calculating the development's placed in
service date, the date of:
(i) the completion of the development's
buildings; and
(ii) the issuance of the certificate of
occupancy for the development; and
(10) a complete copy of the executed and recorded land
use restriction agreement for the development.
(e) If the department determines that a development owner
intentionally provided incorrect or inconsistent information in a
documentation packet submitted to the department under this
section, the department may assess an administrative penalty
against the owner in accordance with Subchapter B. In assessing an
administrative penalty under this subsection, the department may:
(1) impose a monetary penalty; or
(2) prohibit the owner or any person that has an
ownership interest in the development, except for a tax credit
purchaser or syndicator, from participating in the low income
housing tax credit program for a period of not more than two years.
(f) The department shall quarterly prepare and submit to the
legislature a written report that includes the following
information for the preceding quarter:
(1) the total number of submitted documentation
packets that the department is in the course of processing;
(2) the total number of Forms 8609 that the department
issued, aggregated by the total number issued:
(A) not later than the 15th day after the date a
documentation packet was submitted;
(B) on or after the 16th day but before the 31st
day after the date a documentation packet was submitted;
(C) on or after the 31st day but before the 61st
day after the date a documentation packet was submitted; and
(D) on or after the 61st day after the date a
documentation packet was submitted;
(3) a detailed statement of the reasons for the
department's delay in issuing Form 8609 in the time required by
Subsection (b), including complete copies of any requests for
information;
(4) the average time the department required for
issuing Form 8609;
(5) the total number of rejected applications for Form
8609; and
(6) a detailed statement of the reason for the
department's rejection of each application.
(g) The department shall adopt rules to implement this
section, including rules:
(1) prescribing the form and contents of the
documentation required by Subsections (d)(1), (2), (3), (4), (5),
(8), and (9); and
(2) specifying the manner, deadline, and fees for
submitting a documentation packet under this section.
SECTION 2. The changes in law made 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 under Section 2306.67022, Government Code. 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 3. This Act takes effect September 1, 2023.