Texas 2025 - 89th Regular

Texas Senate Bill SB2471 Compare Versions

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

Old	New	Differences
1	1	89R11270 JAM-F
2	2	By: Menéndez S.B. No. 2471
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a set-aside of low income housing tax credits for
10	10	at-risk housing developments and to the allocation of housing tax
11	11	credits to those developments and certain other developments.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 2306.111, Government Code, is amended by
14	14	amending Subsections (a), (d-1), (d-2), and (d-4) and adding
15	15	Subsection (a-1) to read as follows:
16	16	(a) In this section, "at-risk" development has the meaning
17	17	assigned by Section 2306.6702.
18	18	(a-1) The department, through the housing finance division,
19	19	shall administer all federal housing funds provided to the state
20	20	under the Cranston-Gonzalez National Affordable Housing Act (42
21	21	U.S.C. Section 12704 et seq.) or any other affordable housing
22	22	program.
23	23	(d-1) In allocating low income housing tax credit
24	24	commitments under Subchapter DD, the department shall, before
25	25	applying the regional allocation formula prescribed by Section
26	26	2306.1115, set aside for and allocate to at-risk developments[, as
27	27	defined by Section 2306.6702,] not less than the minimum amount of
28	28	housing tax credits required to be set aside and allocated under
29	29	Section 2306.6714(a) [2306.6714]. Funds or credits are not
30	30	required to be allocated according to the regional allocation
31	31	formula under Subsection (d) if:
32	32	(1) the funds or credits are reserved for
33	33	contract-for-deed conversions or for set-asides mandated by state
34	34	or federal law and each contract-for-deed allocation or set-aside
35	35	allocation equals not more than 10 percent of the total allocation
36	36	of funds or credits for the applicable program;
37	37	(2) the funds or credits are allocated by the
38	38	department primarily to serve persons with disabilities; or
39	39	(3) the funds are housing trust funds administered by
40	40	the department under Sections 2306.201-2306.206 that are not
41	41	otherwise required to be set aside under state or federal law and do
42	42	not exceed $3 million for each programmed activity during each
43	43	application cycle.
44	44	(d-2) In allocating low income housing tax credit
45	45	commitments under Subchapter DD, the department shall allocate five
46	46	percent of the housing tax credits in each application cycle to
47	47	developments that receive federal financial assistance through the
48	48	[Texas Rural Development Office of the] United States Department of
49	49	Agriculture. Any funds allocated to developments under this
50	50	subsection that involve rehabilitation must come from the portion
51	51	of funds that are set aside for and allocated to eligible at-risk
52	52	developments under Subsection (d-1) and Section 2306.6714(a)
53	53	[2306.6714] and any [additional] funds that remain after those
54	54	funds have been set aside and allocated [set aside for those
55	55	developments under Subsection (d-1)]. This subsection does not
56	56	apply to a development financed wholly or partly under Section 538
57	57	of the Housing Act of 1949 (42 U.S.C. Section 1490p-2) unless the
58	58	development involves the rehabilitation of an existing property
59	59	that has received and will continue to receive as part of the
60	60	financing of the development federal financial assistance provided
61	61	under Section 514, [Section] 515, 516, or 521 of the Housing Act of
62	62	1949 (42 U.S.C. Section 1484, [Section] 1485, 1486, or 1490a).
63	63	(d-4) A proposed or existing development that, before
64	64	September 1, 2013, has been awarded or has received federal
65	65	financial assistance provided under Section 514, 515, [or] 516, or
66	66	521 of the Housing Act of 1949 (42 U.S.C. Section 1484, 1485, [or]
67	67	1486, or 1490a) may apply for low income housing tax credits
68	68	allocated under Subsection (d-2) or (d-3) for the uniform state
69	69	service region in which the development is located regardless of
70	70	whether the development is located in a rural area.
71	71	SECTION 2. Section 2306.6702(a)(5), Government Code, is
72	72	amended to read as follows:
73	73	(5) "At-risk development" means:
74	74	(A) a development that:
75	75	(i) has received the benefit of a subsidy in
76	76	the form of a below-market interest rate loan, interest rate
77	77	reduction, rental subsidy, Section 8 housing assistance payment,
78	78	rental supplement payment, rental assistance payment, or equity
79	79	incentive under the following federal laws, as applicable:
80	80	(a) Sections 221(d)(3) and (5),
81	81	National Housing Act (12 U.S.C. Section 1715l);
82	82	(b) Section 236, National Housing Act
83	83	(12 U.S.C. Section 1715z-1);
84	84	(c) Section 202, Housing Act of 1959
85	85	(12 U.S.C. Section 1701q);
86	86	(d) Section 101, Housing and Urban
87	87	Development Act of 1965 (12 U.S.C. Section 1701s);
88	88	(e) the Section 8 Additional
89	89	Assistance Program for housing developments with HUD-Insured and
90	90	HUD-Held Mortgages administered by the United States Department of
91	91	Housing and Urban Development as specified by 24 C.F.R. Part 886,
92	92	Subpart A;
93	93	(f) the Section 8 Housing Assistance
94	94	Program for the Disposition of HUD-Owned Projects administered by
95	95	the United States Department of Housing and Urban Development as
96	96	specified by 24 C.F.R. Part 886, Subpart C;
97	97	(g) Sections 514, 515, [and] 516, and
98	98	521 of the Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, [and]
99	99	1486, and 1490a); or
100	100	(h) Section 42, Internal Revenue Code
101	101	of 1986; and
102	102	(ii) is subject to the following
103	103	conditions:
104	104	(a) the stipulation to maintain
105	105	affordability in the contract granting the subsidy is [nearing]
106	106	within three years of expiration, based on the anticipated
107	107	allocation date of housing tax credits, and, for an automatically
108	108	renewing contract, the stipulation in the contract will not be
109	109	renewed; or
110	110	(b) the federally issued or held
111	111	[HUD-insured or HUD-held] mortgage on the development is eligible
112	112	for prepayment or is within three years of [nearing] the end of its
113	113	term, based on the anticipated allocation date of housing tax
114	114	credits; or
115	115	(B) a development that proposes to rehabilitate
116	116	or reconstruct housing units that:
117	117	(i) receive assistance under Section 9,
118	118	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are
119	119	owned by:
120	120	(a) a public housing authority; or
121	121	(b) a public facility corporation
122	122	created by a public housing authority under Chapter 303, Local
123	123	Government Code;
124	124	(ii) received assistance under Section 9,
125	125	United States Housing Act of 1937 (42 U.S.C. Section 1437g) and:
126	126	(a) are proposed to be disposed of or
127	127	demolished by a public housing authority or a public facility
128	128	corporation created by a public housing authority under Chapter
129	129	303, Local Government Code; or
130	130	(b) have been disposed of or
131	131	demolished by a public housing authority or a public facility
132	132	corporation created by a public housing authority under Chapter
133	133	303, Local Government Code, in the two-year period preceding the
134	134	application for housing tax credits; or
135	135	(iii) receive assistance or will receive
136	136	assistance through the Rental Assistance Demonstration program
137	137	administered by the United States Department of Housing and Urban
138	138	Development as specified by the Consolidated and Further Continuing
139	139	Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent
140	140	amendments, if the application for assistance through the Rental
141	141	Assistance Demonstration program is included in the applicable
142	142	public housing plan that was most recently approved by the United
143	143	States Department of Housing and Urban Development as specified by
144	144	24 C.F.R. Section 903.23.
145	145	SECTION 3. Sections 2306.6714(a) and (b), Government Code,
146	146	are amended to read as follows:
147	147	(a) The department shall:
148	148	(1) set aside for eligible at-risk developments not
149	149	less than 15 percent of the housing tax credits available for
150	150	allocation in the calendar year; and
151	151	(2) to the extent that a sufficient number of eligible
152	152	applicants exist, allocate to at-risk developments the maximum
153	153	amount of housing tax credits set aside for that purpose under
154	154	Subdivision (1).
155	155	(b) Housing [Any amount of housing] tax credits set aside
156	156	under this section that remain [remains] after the initial
157	157	allocation of housing tax credits are [is] available for allocation
158	158	to any eligible applicant that receives financial assistance from
159	159	the United States Department of Agriculture, as provided by the
160	160	qualified allocation plan, only if there are no remaining
161	161	applicants who are eligible for the housing tax credits set aside
162	162	and allocated under Subsection (a).
163	163	SECTION 4. Sections 2306.111, 2306.6702, and 2306.6714,
164	164	Government Code, as amended by this Act, apply only to an
165	165	application for low income housing tax credits that is submitted to
166	166	the Texas Department of Housing and Community Affairs during an
167	167	application cycle that is based on the 2026 qualified allocation
168	168	plan or a subsequent plan adopted by the governing board of the
169	169	department. An application that is submitted during an application
170	170	cycle that is based on an earlier qualified allocation plan is
171	171	governed by the law in effect on the date the application cycle
172	172	began, and the former law is continued in effect for that purpose.
173	173	SECTION 5. This Act takes effect September 1, 2025.