Texas 2025 - 89th Regular

Texas Senate Bill SB1836 Compare Versions

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

Old	New	Differences
1	1	89R3399 DNC-F
2	2	By: Hughes S.B. No. 1836
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the evaluation of applications for certain financial
10	10	assistance administered by the Texas Department of Housing and
11	11	Community Affairs.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 2306.359(a), Government Code, is amended
14	14	to read as follows:
15	15	(a) In evaluating an application for an issuance of private
16	16	activity bonds, the department shall score and rank the application
17	17	using a point system based on criteria that are adopted by the
18	18	department, including criteria regarding:
19	19	(1) the income levels of tenants of the development,
20	20	consistent with the funding priorities provided by Section
21	21	1372.0321;
22	22	(2) the rent levels of the units;
23	23	(3) the level of community support for the
24	24	application;
25	25	(4) the period of guaranteed affordability for low
26	26	income tenants;
27	27	(5) the cost per unit of the development;
28	28	(6) the size, quality, and amenities of the units;
29	29	(7) the services to be provided to tenants of the
30	30	development; [and]
31	31	(8) whether, at the time the complete application is
32	32	submitted, all units that are:
33	33	(A) owned by the applicant are equipped with air
34	34	conditioning; and
35	35	(B) owned or operated by a housing authority or
36	36	other governmental entity, from which the applicant receives
37	37	financial assistance or with which the applicant participates in
38	38	projects for the development of affordable housing, are equipped
39	39	with air conditioning; and
40	40	(9) other criteria as developed by the board.
41	41	SECTION 2. Section 2306.6710, Government Code, is amended
42	42	by amending Subsection (b) and adding Subsections (h) and (i) to
43	43	read as follows:
44	44	(b) If an application satisfies the threshold criteria, the
45	45	department shall score and rank the application using a point
46	46	system that:
47	47	(1) prioritizes in descending order criteria
48	48	regarding:
49	49	(A) financial feasibility of the development
50	50	based on the supporting financial data required in the application
51	51	that will include a project underwriting pro forma from the
52	52	permanent or construction lender;
53	53	(B) quantifiable community participation with
54	54	respect to the development, evaluated on the basis of a resolution
55	55	concerning the development that is voted on and adopted by the
56	56	following, as applicable:
57	57	(i) the governing body of a municipality in
58	58	which the proposed development site is to be located;
59	59	(ii) subject to Subparagraph (iii), the
60	60	commissioners court of a county in which the proposed development
61	61	site is to be located, if the proposed site is to be located in an
62	62	area of a county that is not part of a municipality; or
63	63	(iii) the commissioners court of a county
64	64	in which the proposed development site is to be located and the
65	65	governing body of the applicable municipality, if the proposed site
66	66	is to be located in the extraterritorial jurisdiction of a
67	67	municipality;
68	68	(C) the income levels of tenants of the
69	69	development;
70	70	(D) the size and quality of the units;
71	71	(E) the rent levels of the units;
72	72	(F) the cost of the development by square foot;
73	73	(G) the services to be provided to tenants of the
74	74	development;
75	75	(H) whether, at the time the complete application
76	76	is submitted or at any time within the two-year period preceding the
77	77	date of submission, the proposed development site is located in an
78	78	area declared to be a disaster under Section 418.014;
79	79	(I) quantifiable community participation with
80	80	respect to the development, evaluated on the basis of written
81	81	statements from any neighborhood organizations on record with the
82	82	state or county in which the development is to be located and whose
83	83	boundaries contain the proposed development site; [and]
84	84	(J) the level of community support for the
85	85	application, evaluated on the basis of a written statement from the
86	86	state representative who represents the district containing the
87	87	proposed development site; and
88	88	(K) whether, at the time the complete application
89	89	is submitted, all units that are:
90	90	(i) owned by the applicant are equipped
91	91	with air conditioning; and
92	92	(ii) owned or operated by a housing
93	93	authority or other governmental entity, from which the applicant
94	94	receives financial assistance or with which the applicant
95	95	participates in projects for the development of affordable housing,
96	96	are equipped with air conditioning;
97	97	(2) uses criteria imposing penalties on applicants or
98	98	affiliates who have requested extensions of department deadlines
99	99	relating to developments supported by housing tax credit
100	100	allocations made in the application round preceding the current
101	101	round or a developer or principal of the applicant that has been
102	102	removed by the lender, equity provider, or limited partners for its
103	103	failure to perform its obligations under the loan documents or
104	104	limited partnership agreement;
105	105	(3) encourages applicants to provide free notary
106	106	public service to the residents of the developments for which the
107	107	allocation of housing tax credits is requested; and
108	108	(4) for an application concerning a development that
109	109	is or will be located in a county with a population of 1.2 million or
110	110	more but less than 4 million and that is or will be located not more
111	111	than two miles from a veterans hospital, veterans affairs medical
112	112	center, or veterans affairs health care center, encourages
113	113	applicants to provide a preference for leasing units in the
114	114	development to low income veterans.
115	115	(h) If an applicant requests in writing a statement of
116	116	support under Subsection (b)(1)(J) from the state representative
117	117	who represents the district containing the proposed development
118	118	site, the request from the applicant must include information
119	119	disclosing the percentage of units owned or operated as described
120	120	by Subsection (b)(1)(K) that are equipped with air conditioning.
121	121	(i) In assigning points to an application under Subsection
122	122	(b)(1)(K), the department shall award negative points if any of the
123	123	units that are owned or operated as described by that paragraph are
124	124	not equipped with air conditioning.
125	125	SECTION 3. The change in law made by this Act applies only
126	126	to an application for low income housing tax credits that is
127	127	submitted to the Texas Department of Housing and Community Affairs
128	128	during an application cycle that is based on the 2026 qualified
129	129	allocation plan or a subsequent plan adopted by the governing board
130	130	of the department under Section 2306.67022, Government Code. An
131	131	application that is submitted during an application cycle that is
132	132	based on an earlier qualified allocation plan is governed by the law
133	133	in effect on the date the application cycle began, and the former
134	134	law is continued in effect for that purpose.
135	135	SECTION 4. This Act takes effect September 1, 2025.