Texas 2023 - 88th Regular

Texas Senate Bill SB2222 Compare Versions

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1	1	By: Menéndez S.B. No. 2222
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the issuance of private activity bonds for qualified
7	7	residential rental projects.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1202.003, Government Code, is amended by
10	10	adding Subsection (b-1) to read as follows:
11	11	(b-1) Notwithstanding Subsection (b), if Section
12	12	1372.037(b) applies with respect to the issuance of qualified
13	13	residential rental project bonds in a program year, the attorney
14	14	general must certify the issuer's compliance with that subsection
15	15	before approving the issuance of those bonds.
16	16	SECTION 2. Section 1372.0231(f), Government Code, is
17	17	amended to read as follows:
18	18	(f) In each area described by Subsection (d) [or (e)], the
19	19	board shall grant reservations based on the priority levels of
20	20	proposed projects as described by Section 1372.0321.
21	21	SECTION 3. Section 1372.0321, Government Code, is amended
22	22	to read as follows:
23	23	Sec. 1372.0321. PRIORITIES FOR RESERVATIONS AMONG ISSUERS
24	24	OF QUALIFIED RESIDENTIAL RENTAL PROJECT ISSUES. (a) In granting
25	25	reservations to issuers of qualified residential rental project
26	26	issues, the board shall give first priority to projects that:
27	27	(1) during the three-year period preceding the date of
28	28	the application, have closed on a previous reservation of bonds in
29	29	accordance with Section 1372.042, as determined based on the date
30	30	of allocation of those bonds; and
31	31	(2) require a subsequent issuance of bonds to maintain
32	32	compliance with the percentage requirement described by Internal
33	33	Revenue Code Section 42(h)(4)(B).
34	34	(b) In granting reservations to issuers of qualified
35	35	residential rental project issues, the board shall give second
36	36	priority to projects for which an application was filed on or before
37	37	October 20 of the program year 2 years preceding the current program
38	38	year and which:
39	39	(1) meet one of the requirements of Section
40	40	1372.0321(c), and
41	41	(2) was not withdrawn and did not receive a bond
42	42	reservation, and
43	43	(3) for which:
44	44	(A) a binding contract to incur significant
45	45	expenditures for construction, reconstruction, or rehabilitation
46	46	was entered into before submission of the application;
47	47	(B) significant expenditures for construction,
48	48	reconstruction, or rehabilitation were readily identifiable with
49	49	and necessary to carry out a binding contract for the supply of
50	50	property or services or the sale of output; or
51	51	(C) significant expenditures were paid or
52	52	incurred before submission of the application.
53	53	(4) In this section, "significant expenditures" means
54	54	expenditures that are greater than the lesser of:
55	55	(A) $500,000; or
56	56	(B) 10 percent of the reasonably anticipated cost
57	57	of the project
58	58	(c) In granting reservation to issuers of qualified
59	59	residential rental project issues, the board shall give third
60	60	priority to
61	61	(1) projects in which:
62	62	(A) 50 percent of the residential units in the
63	63	project are:
64	64	(i) under the restriction that the maximum
65	65	allowable rents are an amount equal to 30 percent of 50 percent of
66	66	the area median family income minus an allowance for utility costs
67	67	authorized under the federal low-income housing tax credit program;
68	68	and
69	69	(ii) reserved for families and individuals
70	70	earning not more than 50 percent of the area median income; and
71	71	(B) the remaining 50 percent of the residential
72	72	units in the project are:
73	73	(i) under the restriction that the maximum
74	74	allowable rents are an amount equal to 30 percent of 80 percent of
75	75	the area median family income minus an allowance for utility costs
76	76	authorized under the federal low-income housing tax credit program;
77	77	and
78	78	(ii) reserved for families and individuals
79	79	earning not more than 80 percent of the area median income;
80	80	(2) projects in which:
81	81	(A) 15 percent of the residential units in the
82	82	project are:
83	83	(i) under the restriction that the maximum
84	84	allowable rents are an amount equal to 30 percent of 30 percent of
85	85	the area median family income minus an allowance for utility costs
86	86	authorized under the federal low-income housing tax credit program;
87	87	and
88	88	(ii) reserved for families and individuals
89	89	earning not more than 30 percent of the area median income; and
90	90	(B) the remaining 85 percent of the residential
91	91	units in the project are:
92	92	(i) under the restriction that the maximum
93	93	allowable rents are an amount equal to 30 percent of 80 percent of
94	94	the area median family income minus an allowance for utility costs
95	95	authorized under the federal low-income housing tax credit program;
96	96	and
97	97	(ii) reserved for families and individuals
98	98	earning not more than 80 percent of the area median income;
99	99	(3) projects:
100	100	(A) in which 100 percent of the residential units
101	101	in the project are, on average:
102	102	(i) under the restriction that the maximum
103	103	allowable rents are an amount equal to 30 percent of 60 percent of
104	104	the area median family income minus an allowance for utility costs
105	105	authorized under the federal low-income housing tax credit program;
106	106	and
107	107	(ii) reserved for families and individuals
108	108	earning, on average, not more than 60 percent of the area median
109	109	income; and
110	110	(B) which are located in a census tract in which
111	111	the median income, based on the most recent information published
112	112	by the United States Bureau of the Census, is higher than the median
113	113	income for the county, metropolitan statistical area, or primary
114	114	metropolitan statistical area in which the census tract is located
115	115	as established by the United States Department of Housing and Urban
116	116	Development; or
117	117	(4) on or after June 1, projects that are located in
118	118	counties, metropolitan statistical areas, or primary metropolitan
119	119	statistical areas with area median family incomes at or below the
120	120	statewide median family income established by the United States
121	121	Department of Housing and Urban Development.
122	122	(d) [(a-1)] In granting reservations to issuers of
123	123	qualified residential rental project issues, the board shall give
124	124	fourth [second] priority to projects in which 80 percent or more of
125	125	the residential units in the project are:
126	126	(1) under the restriction that the maximum allowable
127	127	rents are, on average, an amount equal to 30 percent of 60 percent
128	128	of the area median family income minus an allowance for utility
129	129	costs authorized under the federal low-income housing tax credit
130	130	program; and
131	131	(2) reserved for families and individuals earning, on
132	132	average, not more than 60 percent of the area median income.
133	133	(e) [(a-2)] In granting reservations to issuers of
134	134	qualified residential rental project issues, the board shall give
135	135	fifth [third] priority to any other qualified residential rental
136	136	project.
137	137	SECTION 4. Section 1372.037, Government Code, is amended by
138	138	adding Subsection (b) to read as follows:
139	139	(b) This subsection applies only to projects that are
140	140	granted a reservation of a portion of the available state ceiling
141	141	for a program year under Subsection (a)(5). If for a program year
142	142	the total amount of qualified residential rental project bonds for
143	143	which reservations are sought exceeds, as of October 20 of the
144	144	preceding year, 55.75 percent of the portion of state ceiling
145	145	available for that year exclusively for reservations by issuers of
146	146	qualified residential rental project bonds under Section
147	147	1372.0231(f), the amount of bonds issued to each project may not
148	148	exceed 55 percent of the reasonably expected aggregate basis of the
149	149	project and the land on which the project is or will be located.
150	150	SECTION 5. Section 1372.042(d), Government Code, is amended
151	151	to read as follows:
152	152	(d) Not later than the fifth business day after the date on
153	153	which the bonds are closed, the issuer shall submit to the board:
154	154	(1) a written notice stating the delivery date of the
155	155	bonds and the principal amount of the bonds issued;
156	156	(2) if the project is a project entitled to first, [or]
157	157	second, third or fourth priority under Section 1372.0321, evidence
158	158	from the Texas Department of Housing and Community Affairs that an
159	159	award of low-income housing tax credits has been approved for the
160	160	project; and
161	161	(3) a certified copy of the document authorizing the
162	162	bonds and any other document relating to the issuance of the bonds,
163	163	including a statement of the bonds':
164	164	(A) principal amount;
165	165	(B) interest rate or formula by which the
166	166	interest rate is computed;
167	167	(C) maturity schedule; and
168	168	(D) purchaser or purchasers.
169	169	SECTION 6. The change in law made by this Act in adding
170	170	Section 1202.003(b-1), Government Code, and in amending Chapter
171	171	1372, Government Code, applies to the allocation of the available
172	172	state ceiling under Chapter 1372 beginning with the 2024 program
173	173	year.
174	174	SECTION 7. This Act takes effect immediately if it receives
175	175	a vote of two-thirds of all the members elected to each house, as
176	176	provided by Section 39, Article III, Texas Constitution. If this
177	177	Act does not receive the vote necessary for immediate effect, this
178	178	Act takes effect September 1, 2023.