Texas 2023 - 88th Regular

Texas Senate Bill SB1925 Compare Versions

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1	1	88R9309 JG-D
2	2	By: Springer S.B. No. 1925
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. Section 2306.67022, Government Code, is amended
10	10	to read as follows:
11	11	Sec. 2306.67022. QUALIFIED ALLOCATION PLAN; MANUAL. (a)
12	12	At least biennially, the board shall adopt a qualified allocation
13	13	plan and a corresponding manual to provide information regarding
14	14	the administration of and eligibility for the low income housing
15	15	tax credit program. The board may adopt the plan and manual
16	16	annually, as considered appropriate by the board.
17	17	(b) The department may not adopt a qualified allocation plan
18	18	that:
19	19	(1) requires as part of the threshold criteria that an
20	20	applicant agree to, in a land use restriction agreement or
21	21	otherwise, an affordability period for a proposed development that
22	22	is greater than the federal minimum affordability period; or
23	23	(2) uses a scoring system that awards points to an
24	24	application based on whether an applicant agrees to, in a land use
25	25	restriction agreement or otherwise, an affordability period for a
26	26	proposed development that is greater than the federal minimum
27	27	affordability period.
28	28	(c) For purposes of Subsection (b), "federal minimum
29	29	affordability period" means the period beginning on the first day
30	30	of the compliance period, as defined by Section 42(i)(1), Internal
31	31	Revenue Code of 1986 (26 U.S.C. Section 42(i)(1)), and ending 15
32	32	years from the date on which the compliance period ends.
33	33	SECTION 2. Section 2306.6711(b), Government Code, is
34	34	amended to read as follows:
35	35	(b) Not later than the deadline specified in the qualified
36	36	allocation plan, the board shall issue commitments for available
37	37	housing tax credits based on the application evaluation process
38	38	provided by Section 2306.6710. The board may not allocate to an
39	39	applicant housing tax credits in any unnecessary amount, as
40	40	determined by the department's underwriting policy and by federal
41	41	law, and in any event may not allocate to the applicant housing tax
42	42	credits in an amount greater than $6 [$3] million in a single
43	43	application round or to an individual development more than $2
44	44	million in a single application round.
45	45	SECTION 3. Section 2306.6724, Government Code, is amended
46	46	by adding Subsection (g) to read as follows:
47	47	(g) Notwithstanding other law, the department shall issue a
48	48	final commitment for an allocation of housing tax credits not later
49	49	than the 90th day following the date on which the department first
50	50	receives from an applicant an Internal Revenue Service Form 8609,
51	51	or that form's successor, for the purpose of obtaining a low-income
52	52	housing credit allocation and certification.
53	53	SECTION 4. Section 2306.1112, Government Code, is repealed.
54	54	SECTION 5. The change in law made by this Act applies only
55	55	to an application for low income housing tax credits that is
56	56	submitted to the Texas Department of Housing and Community Affairs
57	57	during an application cycle that is based on the 2024 qualified
58	58	allocation plan or a subsequent plan adopted by the governing board
59	59	of the department. An application that is submitted during an
60	60	application cycle that is based on an earlier qualified allocation
61	61	plan is governed by the law in effect on the date the application
62	62	cycle began, and the former law is continued in effect for that
63	63	purpose.
64	64	SECTION 6. This Act takes effect September 1, 2023.