Texas 2025 - 89th Regular

Texas House Bill HB1342 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3702 JAM-F
2	2	By: Gervin-Hawkins H.B. No. 1342
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the issuance of private activity bonds for qualified
10	10	residential rental projects.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1372.0321, Government Code, is amended
13	13	by adding Subsections (a-1) and (a-2) and amending Subsections (b),
14	14	(c), and (d) to read as follows:
15	15	(a-1) In granting reservations to issuers of qualified
16	16	residential rental project issues, the board shall give second
17	17	priority to projects:
18	18	(1) for which an application:
19	19	(A) was filed on or before October 20 of the
20	20	program year occurring two years before the current program year;
21	21	and
22	22	(B) was not withdrawn and did not receive a bond
23	23	reservation;
24	24	(2) that meet at least one requirement of Subsection
25	25	(b); and
26	26	(3) for which:
27	27	(A) a binding contract to incur significant
28	28	expenditures for construction, reconstruction, or rehabilitation
29	29	was entered into before submission of the application;
30	30	(B) significant expenditures for construction,
31	31	reconstruction, or rehabilitation were readily identifiable with
32	32	and necessary to carry out a binding contract for the supply of
33	33	property or services or the sale of output; or
34	34	(C) significant expenditures were paid or
35	35	incurred before submission of the application.
36	36	(a-2) For purposes of Subsection (a-1), "significant
37	37	expenditures" means expenditures that exceed the lesser of:
38	38	(1) $500,000; or
39	39	(2) 10 percent of the reasonably anticipated cost of
40	40	the project.
41	41	(b) In granting reservations to issuers of qualified
42	42	residential rental project issues, the board shall give third
43	43	[second] priority to:
44	44	(1) projects in which:
45	45	(A) 50 percent of the residential units in the
46	46	project are:
47	47	(i) under the restriction that the maximum
48	48	allowable rents are an amount equal to 30 percent of 50 percent of
49	49	the area median family income minus an allowance for utility costs
50	50	authorized under the federal low-income housing tax credit program;
51	51	and
52	52	(ii) reserved for families and individuals
53	53	earning not more than 50 percent of the area median income; and
54	54	(B) the remaining 50 percent of the residential
55	55	units in the project are:
56	56	(i) under the restriction that the maximum
57	57	allowable rents are an amount equal to 30 percent of 80 [60] percent
58	58	of the area median family income minus an allowance for utility
59	59	costs authorized under the federal low-income housing tax credit
60	60	program; and
61	61	(ii) reserved for families and individuals
62	62	earning not more than 80 [60] percent of the area median income;
63	63	(2) projects in which:
64	64	(A) 15 percent of the residential units in the
65	65	project are:
66	66	(i) under the restriction that the maximum
67	67	allowable rents are an amount equal to 30 percent of 30 percent of
68	68	the area median family income minus an allowance for utility costs
69	69	authorized under the federal low-income housing tax credit program;
70	70	and
71	71	(ii) reserved for families and individuals
72	72	earning not more than 30 percent of the area median income; and
73	73	(B) the remaining 85 percent of the residential
74	74	units in the project are:
75	75	(i) under the restriction that the maximum
76	76	allowable rents are an amount equal to 30 percent of 80 [60] percent
77	77	of the area median family income minus an allowance for utility
78	78	costs authorized under the federal low-income housing tax credit
79	79	program; and
80	80	(ii) reserved for families and individuals
81	81	earning not more than 80 [60] percent of the area median income;
82	82	(3) projects:
83	83	(A) in which 100 percent of the residential units
84	84	in the project are:
85	85	(i) under the restriction that the maximum
86	86	allowable rents are, on average, an amount equal to 30 percent of 60
87	87	percent of the area median family income minus an allowance for
88	88	utility costs authorized under the federal low-income housing tax
89	89	credit program; and
90	90	(ii) reserved for families and individuals
91	91	earning, on average, not more than 60 percent of the area median
92	92	income; and
93	93	(B) which are located in a census tract in which
94	94	the median income, based on the most recent information published
95	95	by the United States Bureau of the Census, is higher than the median
96	96	income for the county, metropolitan statistical area, or primary
97	97	metropolitan statistical area in which the census tract is located
98	98	as established by the United States Department of Housing and Urban
99	99	Development; or
100	100	(4) on or after June 1, projects that are located in
101	101	counties, metropolitan statistical areas, or primary metropolitan
102	102	statistical areas with area median family incomes at or below the
103	103	statewide median family income established by the United States
104	104	Department of Housing and Urban Development.
105	105	(c) In granting reservations to issuers of qualified
106	106	residential rental project issues, the board shall give fourth
107	107	[third] priority to projects in which 80 percent or more of the
108	108	residential units in the project are:
109	109	(1) under the restriction that the maximum allowable
110	110	rents are, on average, an amount equal to 30 percent of 60 percent
111	111	of the area median family income minus an allowance for utility
112	112	costs authorized under the federal low-income housing tax credit
113	113	program; and
114	114	(2) reserved for families and individuals earning, on
115	115	average, not more than 60 percent of the area median income.
116	116	(d) In granting reservations to issuers of qualified
117	117	residential rental project issues, the board shall give fifth
118	118	[fourth] priority to any other qualified residential rental
119	119	project.
120	120	SECTION 2. Section 1372.042(d), Government Code, is amended
121	121	to read as follows:
122	122	(d) Not later than the fifth business day after the date on
123	123	which the bonds are closed, the issuer shall submit to the board:
124	124	(1) a written notice stating the delivery date of the
125	125	bonds and the principal amount of the bonds issued; and
126	126	(2) [if the project is a project entitled to first,
127	127	second, or third priority under Section 1372.0321, evidence from
128	128	the Texas Department of Housing and Community Affairs that an award
129	129	of low-income housing tax credits has been approved for the
130	130	project; and
131	131	[(3)] a certified copy of the document authorizing the
132	132	bonds and any other document relating to the issuance of the bonds,
133	133	including a statement of the bonds':
134	134	(A) principal amount;
135	135	(B) interest rate or formula by which the
136	136	interest rate is computed;
137	137	(C) maturity schedule; and
138	138	(D) purchaser or purchasers.
139	139	SECTION 3. Section 1372.0321(e), Government Code, is
140	140	repealed.
141	141	SECTION 4. The change in law made by this Act in amending
142	142	Chapter 1372, Government Code, applies to the allocation of the
143	143	available state ceiling under Chapter 1372 beginning with the 2026
144	144	program year.
145	145	SECTION 5. This Act takes effect September 1, 2025.