| 1 | 1 | | 89R10141 JAM-F |
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| 2 | 2 | | By: Eckhardt, West S.B. No. 1944 |
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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 allocation of housing tax credits to developments |
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| 10 | 10 | | within proximate geographical areas. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 2306.6711(f-1), Government Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | (f-1) The board may allocate housing tax credits to more |
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| 15 | 15 | | than one development in a single community: |
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| 16 | 16 | | (1) [only] if: |
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| 17 | 17 | | (A) [(1)] the community is located entirely in: |
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| 18 | 18 | | (i) [(A)] a municipality with a population |
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| 19 | 19 | | of two million or more; and |
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| 20 | 20 | | (ii) [(B)] an area that is in a federally |
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| 21 | 21 | | declared disaster area; and |
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| 22 | 22 | | (B) [(2)] the governing body of the municipality |
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| 23 | 23 | | containing the development: |
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| 24 | 24 | | (i) [(A)] has by vote specifically |
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| 25 | 25 | | authorized the allocation of housing tax credits for the |
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| 26 | 26 | | development; and |
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| 27 | 27 | | (ii) [(B)] is authorized to administer |
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| 28 | 28 | | disaster recovery funds as a subgrant recipient; or |
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| 29 | 29 | | (2) if: |
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| 30 | 30 | | (A) the community is located entirely in: |
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| 31 | 31 | | (i) a municipality; |
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| 32 | 32 | | (ii) a census tract with a poverty rate less |
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| 33 | 33 | | than the greater of 20 percent or the median poverty rate among |
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| 34 | 34 | | census tracts in the uniform state service region; and |
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| 35 | 35 | | (iii) an area that allows the development |
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| 36 | 36 | | to receive the maximum possible points for the opportunity index |
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| 37 | 37 | | established by the department pursuant to 26 U.S.C. Section |
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| 38 | 38 | | 42(m)(1)(C)(i); and |
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| 39 | 39 | | (B) the governing body of the municipality |
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| 40 | 40 | | containing the development has by vote specifically authorized the |
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| 41 | 41 | | allocation of housing tax credits for the development. |
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| 42 | 42 | | SECTION 2. The change in law made by this Act applies only |
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| 43 | 43 | | to an application for low income housing tax credits that is |
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| 44 | 44 | | submitted to the Texas Department of Housing and Community Affairs |
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| 45 | 45 | | during an application cycle that is based on the 2026 qualified |
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| 46 | 46 | | allocation plan or a subsequent plan adopted by the governing board |
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| 47 | 47 | | of the department. An application that is submitted during an |
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| 48 | 48 | | application cycle that is based on an earlier qualified allocation |
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| 49 | 49 | | plan is governed by the law in effect on the date the application |
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| 50 | 50 | | cycle began, and the former law is continued in effect for that |
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| 51 | 51 | | purpose. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2025. |
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