Bill Text: TX HB2402 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to the eligibility of certain at-risk developments to receive low income housing tax credits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2023-05-11 - Referred to Local Government [HB2402 Detail]
Download: Texas-2023-HB2402-Engrossed.html
88R3975 JG-F | ||
By: Moody | H.B. No. 2402 |
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relating to the eligibility of certain at-risk developments to | ||
receive low income housing tax credits. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2306.6702(a)(5), Government Code, is | ||
amended to read as follows: | ||
(5) "At-risk development" means: | ||
(A) a development that: | ||
(i) has received the benefit of a subsidy in | ||
the form of a below-market interest rate loan, interest rate | ||
reduction, rental subsidy, Section 8 housing assistance payment, | ||
rental supplement payment, rental assistance payment, or equity | ||
incentive under the following federal laws, as applicable: | ||
(a) Sections 221(d)(3) and (5), | ||
National Housing Act (12 U.S.C. Section 1715l); | ||
(b) Section 236, National Housing Act | ||
(12 U.S.C. Section 1715z-1); | ||
(c) Section 202, Housing Act of 1959 | ||
(12 U.S.C. Section 1701q); | ||
(d) Section 101, Housing and Urban | ||
Development Act of 1965 (12 U.S.C. Section 1701s); | ||
(e) the Section 8 Additional | ||
Assistance Program for housing developments with HUD-Insured and | ||
HUD-Held Mortgages administered by the United States Department of | ||
Housing and Urban Development as specified by 24 C.F.R. Part 886, | ||
Subpart A; | ||
(f) the Section 8 Housing Assistance | ||
Program for the Disposition of HUD-Owned Projects administered by | ||
the United States Department of Housing and Urban Development as | ||
specified by 24 C.F.R. Part 886, Subpart C; | ||
(g) the Section 8 Housing Assistance | ||
Payments Program for New Construction administered by the United | ||
States Department of Housing and Urban Development as specified by | ||
24 C.F.R. Part 880; | ||
(h) the Section 8 Housing Assistance | ||
Payments Program for Substantial Rehabilitation administered by | ||
the United States Department of Housing and Urban Development as | ||
specified by 24 C.F.R. Part 881; | ||
(i) Sections 514, 515, and 516, | ||
Housing Act of 1949 (42 U.S.C. Sections 1484, 1485, and 1486); or | ||
(j) [ |
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Revenue Code of 1986; and | ||
(ii) is subject to the following | ||
conditions: | ||
(a) the stipulation to maintain | ||
affordability in the contract granting the subsidy is nearing | ||
expiration; or | ||
(b) the HUD-insured or HUD-held | ||
mortgage on the development is eligible for prepayment or is | ||
nearing the end of its term; or | ||
(B) a development that proposes to rehabilitate | ||
or reconstruct housing units that: | ||
(i) receive assistance under Section 9, | ||
United States Housing Act of 1937 (42 U.S.C. Section 1437g) and are | ||
owned by: | ||
(a) a public housing authority; or | ||
(b) a public facility corporation | ||
created by a public housing authority under Chapter 303, Local | ||
Government Code; | ||
(ii) received assistance under Section 9, | ||
United States Housing Act of 1937 (42 U.S.C. Section 1437g) and: | ||
(a) are proposed to be disposed of or | ||
demolished by a public housing authority or a public facility | ||
corporation created by a public housing authority under Chapter | ||
303, Local Government Code; or | ||
(b) have been disposed of or | ||
demolished by a public housing authority or a public facility | ||
corporation created by a public housing authority under Chapter | ||
303, Local Government Code, in the two-year period preceding the | ||
application for housing tax credits; or | ||
(iii) receive assistance or will receive | ||
assistance through the Rental Assistance Demonstration program | ||
administered by the United States Department of Housing and Urban | ||
Development as specified by the Consolidated and Further Continuing | ||
Appropriations Act, 2012 (Pub. L. No. 112-55) and its subsequent | ||
amendments, if the application for assistance through the Rental | ||
Assistance Demonstration program is included in the applicable | ||
public housing plan that was most recently approved by the United | ||
States Department of Housing and Urban Development as specified by | ||
24 C.F.R. Section 903.23. | ||
SECTION 2. Section 2306.6702, Government Code, is amended | ||
by adding Subsection (c) to read as follows: | ||
(c) For purposes of Subsection (a)(5), a development | ||
described by that subdivision is considered an at-risk development | ||
under this subchapter regardless of whether: | ||
(1) the development proposes to newly construct | ||
housing units or rehabilitate or reconstruct housing units at the | ||
same location of any of the original development sites; or | ||
(2) the development proposes to wholly construct or | ||
reconstruct housing units at a location other than the location of | ||
any of the original development sites and the development: | ||
(A) qualifies for points on the opportunity index | ||
under department rule; or | ||
(B) is supported by the applicable governing body | ||
of the municipality or county in which the development is located, | ||
as evidenced by a resolution adopted by the governing body. | ||
SECTION 3. The change in law made by this Act applies only | ||
to an application for low income housing tax credits that is | ||
submitted to the Texas Department of Housing and Community Affairs | ||
during an application cycle that is based on the 2024 qualified | ||
allocation plan or a subsequent plan adopted by the governing board | ||
of the department under Section 2306.67022, Government Code. An | ||
application that is submitted during an application cycle that is | ||
based on an earlier qualified allocation plan is governed by the law | ||
in effect on the date the application cycle began, and the former | ||
law is continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2023. |