Texas 2025 - 89th Regular

Texas House Bill HB2985 Compare Versions

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

Old	New	Differences
1	1	89R12385 JG-F
2	2	By: Moody H.B. No. 2985
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the eligibility of certain at-risk developments to
10	10	receive low income housing tax credits.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 2306.6702(a)(5), Government Code, is
13	13	amended to read as follows:
14	14	(5) "At-risk development" means:
15	15	(A) a development that:
16	16	(i) has received the benefit of a subsidy in
17	17	the form of a below-market interest rate loan, interest rate
18	18	reduction, rental subsidy, Section 8 housing assistance payment,
19	19	rental supplement payment, rental assistance payment, or equity
20	20	incentive under the following federal laws, as applicable:
21	21	(a) Sections 221(d)(3) and (5),
22	22	National Housing Act (12 U.S.C. Section 1715l);
23	23	(b) Section 236, National Housing Act
24	24	(12 U.S.C. Section 1715z-1);
25	25	(c) Section 202, Housing Act of 1959
26	26	(12 U.S.C. Section 1701q);
27	27	(d) Section 101, Housing and Urban
28	28	Development Act of 1965 (12 U.S.C. Section 1701s);
29	29	(e) the Section 8 Additional
30	30	Assistance Program for housing developments with HUD-Insured and
31	31	HUD-Held Mortgages administered by the United States Department of
32	32	Housing and Urban Development as specified by 24 C.F.R. Part 886,
33	33	Subpart A;
34	34	(f) the Section 8 Housing Assistance
35	35	Program for the Disposition of HUD-Owned Projects administered by
36	36	the United States Department of Housing and Urban Development as
37	37	specified by 24 C.F.R. Part 886, Subpart C;
38	38	(g) the Section 8 Housing Assistance
39	39	Payments Program for New Construction administered by the United
40	40	States Department of Housing and Urban Development as specified by
41	41	24 C.F.R. Part 880;
42	42	(h) the Section 8 Housing Assistance
43	43	Payments Program for Substantial Rehabilitation administered by
44	44	the United States Department of Housing and Urban Development as
45	45	specified by 24 C.F.R. Part 881;
46	46	(i) Sections 514, 515, and 516,
47	47	Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or
48	48	(j) [(h)] Section 42, Internal
49	49	Revenue Code of 1986; and
50	50	(ii) is subject to the following
51	51	conditions:
52	52	(a) the stipulation to maintain
53	53	affordability in the contract granting the subsidy is nearing
54	54	expiration; or
55	55	(b) the HUD-insured or HUD-held
56	56	mortgage on the development is eligible for prepayment or is
57	57	nearing the end of its term; or
58	58	(B) a development that proposes to rehabilitate
59	59	or reconstruct housing units that:
60	60	(i) receive assistance under Section 9,
61	61	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are
62	62	owned by:
63	63	(a) a public housing authority; or
64	64	(b) a public facility corporation
65	65	created by a public housing authority under Chapter 303, Local
66	66	Government Code;
67	67	(ii) received assistance under Section 9,
68	68	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
69	69	(a) are proposed to be disposed of or
70	70	demolished by a public housing authority or a public facility
71	71	corporation created by a public housing authority under Chapter
72	72	303, Local Government Code; or
73	73	(b) have been disposed of or
74	74	demolished by a public housing authority or a public facility
75	75	corporation created by a public housing authority under Chapter
76	76	303, Local Government Code, in the two-year period preceding the
77	77	application for housing tax credits; or
78	78	(iii) receive assistance or will receive
79	79	assistance through the Rental Assistance Demonstration program
80	80	administered by the United States Department of Housing and Urban
81	81	Development as specified by the Consolidated and Further Continuing
82	82	Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent
83	83	amendments, if the application for assistance through the Rental
84	84	Assistance Demonstration program is included in the applicable
85	85	public housing plan that was most recently approved by the United
86	86	States Department of Housing and Urban Development as specified by
87	87	24 C.F.R. Section 903.23.
88	88	SECTION 2. Section 2306.6702, Government Code, is amended
89	89	by adding Subsection (c) to read as follows:
90	90	(c) For purposes of Subsection (a)(5), a development
91	91	described by that subdivision is considered an at-risk development
92	92	under this subchapter regardless of whether:
93	93	(1) the development proposes to newly construct
94	94	housing units or rehabilitate or reconstruct housing units at the
95	95	same location of any of the original development sites; or
96	96	(2) the development proposes to wholly construct or
97	97	reconstruct housing units at a location other than the location of
98	98	any of the original development sites and the development:
99	99	(A) qualifies for points on the opportunity index
100	100	under department rule; or
101	101	(B) is supported by the applicable governing body
102	102	of the municipality or county in which the development is located,
103	103	as evidenced by a resolution adopted by the governing body.
104	104	SECTION 3. The change in law made by this Act applies only
105	105	to an application for low income housing tax credits that is
106	106	submitted to the Texas Department of Housing and Community Affairs
107	107	during an application cycle that is based on the 2026 qualified
108	108	allocation plan or a subsequent plan adopted by the governing board
109	109	of the department under Section 2306.67022, Government Code. An
110	110	application that is submitted during an application cycle that is
111	111	based on an earlier qualified allocation plan is governed by the law
112	112	in effect on the date the application cycle began, and the former
113	113	law is continued in effect for that purpose.
114	114	SECTION 4. This Act takes effect September 1, 2025.