1 | 1 | | 89R3399 DNC-F |
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2 | 2 | | By: Bernal H.B. No. 211 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the evaluation of applications for certain financial |
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10 | 10 | | assistance administered by the Texas Department of Housing and |
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11 | 11 | | Community Affairs. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Section 2306.359(a), Government Code, is amended |
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14 | 14 | | to read as follows: |
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15 | 15 | | (a) In evaluating an application for an issuance of private |
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16 | 16 | | activity bonds, the department shall score and rank the application |
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17 | 17 | | using a point system based on criteria that are adopted by the |
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18 | 18 | | department, including criteria regarding: |
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19 | 19 | | (1) the income levels of tenants of the development, |
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20 | 20 | | consistent with the funding priorities provided by Section |
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21 | 21 | | 1372.0321; |
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22 | 22 | | (2) the rent levels of the units; |
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23 | 23 | | (3) the level of community support for the |
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24 | 24 | | application; |
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25 | 25 | | (4) the period of guaranteed affordability for low |
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26 | 26 | | income tenants; |
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27 | 27 | | (5) the cost per unit of the development; |
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28 | 28 | | (6) the size, quality, and amenities of the units; |
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29 | 29 | | (7) the services to be provided to tenants of the |
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30 | 30 | | development; [and] |
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31 | 31 | | (8) whether, at the time the complete application is |
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32 | 32 | | submitted, all units that are: |
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33 | 33 | | (A) owned by the applicant are equipped with air |
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34 | 34 | | conditioning; and |
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35 | 35 | | (B) owned or operated by a housing authority or |
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36 | 36 | | other governmental entity, from which the applicant receives |
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37 | 37 | | financial assistance or with which the applicant participates in |
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38 | 38 | | projects for the development of affordable housing, are equipped |
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39 | 39 | | with air conditioning; and |
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40 | 40 | | (9) other criteria as developed by the board. |
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41 | 41 | | SECTION 2. Section 2306.6710, Government Code, is amended |
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42 | 42 | | by amending Subsection (b) and adding Subsections (h) and (i) to |
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43 | 43 | | read as follows: |
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44 | 44 | | (b) If an application satisfies the threshold criteria, the |
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45 | 45 | | department shall score and rank the application using a point |
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46 | 46 | | system that: |
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47 | 47 | | (1) prioritizes in descending order criteria |
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48 | 48 | | regarding: |
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49 | 49 | | (A) financial feasibility of the development |
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50 | 50 | | based on the supporting financial data required in the application |
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51 | 51 | | that will include a project underwriting pro forma from the |
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52 | 52 | | permanent or construction lender; |
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53 | 53 | | (B) quantifiable community participation with |
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54 | 54 | | respect to the development, evaluated on the basis of a resolution |
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55 | 55 | | concerning the development that is voted on and adopted by the |
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56 | 56 | | following, as applicable: |
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57 | 57 | | (i) the governing body of a municipality in |
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58 | 58 | | which the proposed development site is to be located; |
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59 | 59 | | (ii) subject to Subparagraph (iii), the |
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60 | 60 | | commissioners court of a county in which the proposed development |
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61 | 61 | | site is to be located, if the proposed site is to be located in an |
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62 | 62 | | area of a county that is not part of a municipality; or |
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63 | 63 | | (iii) the commissioners court of a county |
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64 | 64 | | in which the proposed development site is to be located and the |
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65 | 65 | | governing body of the applicable municipality, if the proposed site |
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66 | 66 | | is to be located in the extraterritorial jurisdiction of a |
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67 | 67 | | municipality; |
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68 | 68 | | (C) the income levels of tenants of the |
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69 | 69 | | development; |
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70 | 70 | | (D) the size and quality of the units; |
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71 | 71 | | (E) the rent levels of the units; |
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72 | 72 | | (F) the cost of the development by square foot; |
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73 | 73 | | (G) the services to be provided to tenants of the |
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74 | 74 | | development; |
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75 | 75 | | (H) whether, at the time the complete application |
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76 | 76 | | is submitted or at any time within the two-year period preceding the |
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77 | 77 | | date of submission, the proposed development site is located in an |
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78 | 78 | | area declared to be a disaster under Section 418.014; |
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79 | 79 | | (I) quantifiable community participation with |
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80 | 80 | | respect to the development, evaluated on the basis of written |
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81 | 81 | | statements from any neighborhood organizations on record with the |
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82 | 82 | | state or county in which the development is to be located and whose |
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83 | 83 | | boundaries contain the proposed development site; [and] |
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84 | 84 | | (J) the level of community support for the |
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85 | 85 | | application, evaluated on the basis of a written statement from the |
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86 | 86 | | state representative who represents the district containing the |
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87 | 87 | | proposed development site; and |
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88 | 88 | | (K) whether, at the time the complete application |
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89 | 89 | | is submitted, all units that are: |
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90 | 90 | | (i) owned by the applicant are equipped |
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91 | 91 | | with air conditioning; and |
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92 | 92 | | (ii) owned or operated by a housing |
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93 | 93 | | authority or other governmental entity, from which the applicant |
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94 | 94 | | receives financial assistance or with which the applicant |
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95 | 95 | | participates in projects for the development of affordable housing, |
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96 | 96 | | are equipped with air conditioning; |
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97 | 97 | | (2) uses criteria imposing penalties on applicants or |
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98 | 98 | | affiliates who have requested extensions of department deadlines |
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99 | 99 | | relating to developments supported by housing tax credit |
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100 | 100 | | allocations made in the application round preceding the current |
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101 | 101 | | round or a developer or principal of the applicant that has been |
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102 | 102 | | removed by the lender, equity provider, or limited partners for its |
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103 | 103 | | failure to perform its obligations under the loan documents or |
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104 | 104 | | limited partnership agreement; |
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105 | 105 | | (3) encourages applicants to provide free notary |
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106 | 106 | | public service to the residents of the developments for which the |
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107 | 107 | | allocation of housing tax credits is requested; and |
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108 | 108 | | (4) for an application concerning a development that |
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109 | 109 | | is or will be located in a county with a population of 1.2 million or |
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110 | 110 | | more but less than 4 million and that is or will be located not more |
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111 | 111 | | than two miles from a veterans hospital, veterans affairs medical |
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112 | 112 | | center, or veterans affairs health care center, encourages |
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113 | 113 | | applicants to provide a preference for leasing units in the |
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114 | 114 | | development to low income veterans. |
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115 | 115 | | (h) If an applicant requests in writing a statement of |
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116 | 116 | | support under Subsection (b)(1)(J) from the state representative |
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117 | 117 | | who represents the district containing the proposed development |
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118 | 118 | | site, the request from the applicant must include information |
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119 | 119 | | disclosing the percentage of units owned or operated as described |
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120 | 120 | | by Subsection (b)(1)(K) that are equipped with air conditioning. |
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121 | 121 | | (i) In assigning points to an application under Subsection |
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122 | 122 | | (b)(1)(K), the department shall award negative points if any of the |
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123 | 123 | | units that are owned or operated as described by that paragraph are |
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124 | 124 | | not equipped with air conditioning. |
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125 | 125 | | SECTION 3. The change in law made by this Act applies only |
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126 | 126 | | to an application for low income housing tax credits that is |
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127 | 127 | | submitted to the Texas Department of Housing and Community Affairs |
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128 | 128 | | during an application cycle that is based on the 2026 qualified |
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129 | 129 | | allocation plan or a subsequent plan adopted by the governing board |
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130 | 130 | | of the department under Section 2306.67022, Government Code. An |
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131 | 131 | | application that is submitted during an application cycle that is |
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132 | 132 | | based on an earlier qualified allocation plan is governed by the law |
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133 | 133 | | in effect on the date the application cycle began, and the former |
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134 | 134 | | law is continued in effect for that purpose. |
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135 | 135 | | SECTION 4. This Act takes effect September 1, 2025. |
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