88R9309 JG-D
By: Springer S.B. No. 1925
A BILL TO BE ENTITLED
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 department may not adopt a qualified allocation plan
that:
(1) requires as part of the threshold criteria that an
applicant agree to, in a land use restriction agreement or
otherwise, an affordability period for a proposed development that
is greater than the federal minimum affordability period; or
(2) uses a scoring system that awards points to an
application based on whether an applicant agrees to, in a land use
restriction agreement or otherwise, an affordability period for a
proposed development that is greater than the federal minimum
affordability period.
(c) For purposes of Subsection (b), "federal minimum
affordability period" means the period beginning on the first day
of the compliance period, as defined by Section 42(i)(1), Internal
Revenue Code of 1986 (26 U.S.C. Section 42(i)(1)), and ending 15
years from the date on which the compliance period ends.
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 other law, the department shall issue a
final commitment for an allocation of housing tax credits not later
than the 90th day following the date on which the department first
receives from an applicant an Internal Revenue Service Form 8609,
or that form's successor, for the purpose of obtaining a low-income
housing credit allocation and certification.
SECTION 4. Section 2306.1112, Government Code, is repealed.
SECTION 5. The change in law made by this Act applies 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 6. This Act takes effect September 1, 2023.