| 1 | 1 | | 89R4359 JAM-D |
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| 2 | 2 | | By: Eckhardt S.B. No. 368 |
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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 certain occupancy preferences given by developments |
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| 10 | 10 | | supported with a low income housing tax credit allocation. |
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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 2306.6701, Government Code, is amended |
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| 13 | 13 | | to read as follows: |
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| 14 | 14 | | Sec. 2306.6701. PURPOSE. (a) The department shall |
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| 15 | 15 | | administer the low income housing tax credit program to: |
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| 16 | 16 | | (1) encourage the development and preservation of |
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| 17 | 17 | | appropriate types of rental housing for households, including |
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| 18 | 18 | | members of a group specified by Subsection (b), that have |
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| 19 | 19 | | difficulty finding suitable, affordable rental housing in the |
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| 20 | 20 | | private marketplace; |
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| 21 | 21 | | (2) maximize the number of suitable, affordable |
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| 22 | 22 | | residential rental units added to the state's housing supply; |
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| 23 | 23 | | (3) prevent losses for any reason to the state's supply |
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| 24 | 24 | | of suitable, affordable residential rental units by enabling the |
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| 25 | 25 | | rehabilitation of rental housing or by providing other preventive |
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| 26 | 26 | | financial support under this subchapter; and |
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| 27 | 27 | | (4) provide for the participation of for-profit |
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| 28 | 28 | | organizations and provide for and encourage the participation of |
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| 29 | 29 | | nonprofit organizations in the acquisition, development, and |
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| 30 | 30 | | operation of affordable housing developments in urban and rural |
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| 31 | 31 | | communities. |
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| 32 | 32 | | (b) Consistent with Section 42(g)(9), Internal Revenue Code |
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| 33 | 33 | | of 1986, a development supported with a housing tax credit |
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| 34 | 34 | | allocation may give an occupancy preference to teachers and other |
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| 35 | 35 | | employees of the school district in which the development is |
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| 36 | 36 | | located, and members of the households of those persons, if all |
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| 37 | 37 | | other occupancy requirements under state and federal law are |
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| 38 | 38 | | satisfied. |
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| 39 | 39 | | SECTION 2. The change in law made by this Act applies only |
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| 40 | 40 | | to an application for low income housing tax credits that is |
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| 41 | 41 | | submitted to the Texas Department of Housing and Community Affairs |
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| 42 | 42 | | during an application cycle that is based on the 2026 qualified |
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| 43 | 43 | | allocation plan or a subsequent plan adopted by the governing board |
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| 44 | 44 | | of the department under Section 2306.67022, Government Code. An |
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| 45 | 45 | | application that is submitted during an application cycle that is |
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| 46 | 46 | | based on an earlier qualified allocation plan is governed by the law |
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| 47 | 47 | | in effect on the date the application cycle began, and the former |
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| 48 | 48 | | law is continued in effect for that purpose. |
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| 49 | 49 | | SECTION 3. This Act takes effect September 1, 2025. |
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