| 1 | 1 | | By: West S.B. No. 2549 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the allocation of housing tax credits to developments |
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| 9 | 9 | | within proximate geographical areas. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Sections 2306.6711(f) and (f-1), Government |
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| 12 | 12 | | Code, are amended to read as follows: |
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| 13 | 13 | | (f) Except as provided by Subsection (f-1), the board may |
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| 14 | 14 | | allocate housing tax credits to more than one development in a |
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| 15 | 15 | | single community, as defined by department rule, in the same |
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| 16 | 16 | | calendar year only if the developments are or will be located more |
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| 17 | 17 | | than two linear miles apart. This subsection applies only to |
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| 18 | 18 | | communities contained within counties with populations exceeding |
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| 19 | 19 | | one million. This Section does not apply to developments that |
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| 20 | 20 | | involve the rehabilitation of existing affordable, rent-restricted |
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| 21 | 21 | | developments. |
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| 22 | 22 | | (f-1) The board may allocate housing tax credits to more |
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| 23 | 23 | | than one development in a single community only if: |
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| 24 | 24 | | (1) the community is located in[: |
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| 25 | 25 | | [(A)] a municipality with a population of 750,000 |
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| 26 | 26 | | [two million] or more; and |
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| 27 | 27 | | [(B) an area that is a federally declared |
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| 28 | 28 | | disaster area; and] |
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| 29 | 29 | | (2) the governing body of the municipality containing |
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| 30 | 30 | | the development[: |
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| 31 | 31 | | [(A)] has by vote specifically authorized the |
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| 32 | 32 | | allocation of housing tax credits for the development[; and |
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| 33 | 33 | | [(B) is authorized to administer disaster |
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| 34 | 34 | | recovery funds as a subgrant recipient]. |
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| 35 | 35 | | SECTION 2. The change in law made by this Act applies only |
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| 36 | 36 | | to an application for low income housing tax credits that is |
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| 37 | 37 | | submitted to the Texas Department of Housing and Community Affairs |
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| 38 | 38 | | during an application cycle that is based on the 2026 qualified |
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| 39 | 39 | | allocation plan or a subsequent plan adopted by the governing board |
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| 40 | 40 | | of the department. An application that is submitted during an |
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| 41 | 41 | | application cycle that is based on an earlier qualified allocation |
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| 42 | 42 | | plan is governed by the law in effect on the date the application |
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| 43 | 43 | | cycle began, and the former law is continued in effect for that |
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| 44 | 44 | | purpose. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2025. |
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